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Highlights:
Optus expands mobile base, driven by amaysim and postpaid customer additions
Strategic deals with TPG Telecom and Aussie Broadband enhance 5G and wholesale reach
Earnings growth supported by device sales, rising ARPU, and broadband resilience
Optus (ASX:SGT), a key telecommunications firm listed on the ASX 200, reported solid earnings for the financial year, driven by growth in its mobile division and recent strategic partnerships. The company, which operates as a subsidiary of Singapore-based Singtel, is navigating a competitive landscape marked by evolving consumer expectations and increasing demand for reliable mobile and internet services.
Mobile Growth Boosts Core Revenue
The standout performance came from Optus’ mobile segment. Strong customer acquisition was led by amaysim, its value-focused brand, alongside an uptick in postpaid subscriptions. This rise in mobile subscribers positively impacted service revenue and lifted blended average revenue per user.
Sales of high-end smartphones also contributed to the mobile division’s performance, with mobile equipment revenue rising during the year. The company credited these gains to its refined customer strategy and improved market offerings.
Improved profitability in the second half was attributed to a combination of customer growth, better revenue per user, and tight cost management. The positive trajectory in mobile earnings reflects the firm’s ongoing emphasis on product quality and service accessibility.
Strategic Deals Accelerate 5G Rollout
During the financial year, Optus secured key agreements aimed at enhancing network coverage and service reach. A notable development was the Multi-Operator Core Network arrangement with TPG Telecom (ASX:TPG), designed to accelerate 5G infrastructure deployment, particularly across regional areas.
In a separate move, Optus entered a wholesale mobile agreement with Aussie Broadband (ASX:ABB), expanding its access to new customer bases and strengthening its presence in the wholesale segment. These collaborations are central to the company’s broader transformation and infrastructure expansion plans.
amaysim Diversifies and Expands Market Reach
amaysim made strategic shifts in its operational focus by branching into fixed-line services. It launched NBN offerings and integrated the customer base of Circles.Life Australia, further expanding its footprint in the Australian telecommunications landscape.
This evolution reflects a broader move to position amaysim not just as a SIM-only provider, but as a more comprehensive telecommunications brand aligned with growing customer demand for flexible service bundles.
Fixed-Line and Enterprise Segments Face Pressure
Despite mobile and broadband improvements, Optus faced ongoing challenges in its fixed-line and enterprise segments. Revenues in these areas declined, influenced by reduced contributions from satellite projects and weakened demand for traditional fixed-line services.
However, fixed wireless access and NBN-related services provided a buffer, registering stable gains over the period. Increased average revenue per user in these services contributed to a more resilient home broadband division.
Group-Level Impact on Singtel Performance
Optus’ financial performance also played a role in the wider earnings results of Singtel, its parent company. The group recorded enhanced profitability, underpinned in part by Optus’ domestic achievements and operational advancements in the Australian market.
The fiscal year marked a period of tangible progress for Optus as it continued reshaping its service offerings and deepening strategic partnerships. While some areas of the business remain in transition, the momentum in mobile and broadband segments has laid the groundwork for continued operational improvements.
