On 8^th August 2019 Optus announced its 1QFY20 earnings.

Revenues were up driven by mobile handset sales and NBN migration payments, in spite of a drop in mobile service revenues and continued weakness in the enterprise segment.

5G and Optus Sport remain the key growth areas going forward.

Some of the key highlights from the announcement included:

• Revenue of A$2,250mn, up 3.3% over 1QFY19 driven by a near 40% increase in mobile equipment and leasing revenues
• Operating EBITDA increased 5% to A$687mn driven by higher NBN migration payments and lower staff, and selling and administrative costs
• Overall net profit of A$105mn, down 32% over 1QFY19 driven by higher depreciation and a subdued contribution from Optus Business

Contents

Key takeaways

Optus 1QFY20 earnings update

• Mobile
• Fixed
• Enterprise
• Optus’ 5G plans
• Optus Sport
• Our Take

List of charts/tables

Figure 1. 1QFY20 Optus key financials (A$mn)

Figure 2. Operating and financial metrics – Optus Mobile

Figure 3. Operating metrics – Optus Fixed

Figure 4. 1QFY20 Optus Enterprise key financials (A$mn)