Question 1

How significantly did the 2022 cyberattack impact Optus's financial performance and customer retention?

Accepted Answer

The company recognized a $140 million provision to cover costs and legal liabilities associated with the security breach. While Optus added 425,000 mobile subscribers over the full year, postpaid churn rose to 1.5% in the second half, up from a previous four-half average of 1.2%.

Question 2

Is Optus maintaining its growth trajectory in the mobile market?

Accepted Answer

Growth has slowed significantly following the September security incident, with 70% of the 425,000 annual mobile additions occurring in the first half of the year. Despite this deceleration, the company managed to deliver a 2.8% increase in operating revenue for FY23.

Question 3

What is the current state of competition in the Fixed Wireless Access segment?

Accepted Answer

Optus's dominance in Fixed Wireless Access (FWA) is under immediate threat, as the company added only 3,000 services in FY23 to reach a total of 208,000. In contrast, TPG added 91,000 customers in 2022 alone, placing them on a trajectory to surpass Optus's subscriber base by mid-2023.

Question 4

Did the company achieve its profitability targets despite the operational headwinds?

Accepted Answer

Optus reported a 4.5% increase in underlying EBITDA after adjusting for nbn migration payments. This growth was supported by a 2.8% rise in operating revenue, demonstrating core business resilience even as the company managed the fallout from the data breach.

Optus FY23 – A Tale of Two Halves

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