Both Optus’ and Vocus’ revenues were impacted by COVID-19. Both operators saw mobile revenues decline in the last quarter, as consumers relied more on fixed broadband while working from home. Pre-COVID-19, we noted rising pressure on mobile ARPUs due to competition and increased consumer interest in cheaper plans. We forecast that COVID-19 would exacerbate these pressures, and this has been validated by Vocus’, Optus’ and Telstra’s results this week.

Contents

Key Takeaways

Optus 1QFY21 earnings update

• Mobile
• Fixed
• Enterprise
• Optus 5G
• Optus Sport

Vocus FY20 update

• Enterprise, Wholesale and Government (Vocus Networks)
• Consumer (Vocus Retail)
• New Zealand

Our take

List of charts/tables

Figure 1.  1QFY21 Optus consumer key financials (A$mn)

Figure 2. Operating and financial metrics – Optus Mobile

Figure 3. Operating metrics – Optus fixed broadband subscriptions

Figure 4. FY20 Vocus key financials (A$mn)

Figure 5. Vocus Networks key financials (A$mn)

Figure 6. Consumer financials and SIOs (A$mn and ‘000 where applicable)

Figure 7. New Zealand financials and SIOs (NZ$mn)