Question 1

How did Optus manage to increase profits while revenue remained flat?

Accepted Answer

Optus successfully pivoted to aggressive margin protection, driving a 58% surge in EBIT despite revenue growth stalling at 0.1%. This profitability was largely manufactured through a 2.5% reduction in operating expenses, primarily achieved via significant headcount cuts.

Question 2

Is the mobile business actually growing, or is it just price hikes?

Accepted Answer

Growth is currently price-dependent rather than volume-driven, with mobile service revenue rising 4.1% on the back of a 3.4% blended ARPU increase. The brand continues to struggle with customer acquisition, as its 0.2% postpaid connection growth significantly underperforms Telstra’s 5.3% expansion rate.

Question 3

What is causing the sharp decline in the enterprise and wholesale division?

Accepted Answer

The segment collapsed by 17.8% due to a structural shift in satellite demand and lower ICT equipment sales. High-margin satellite revenue has eroded from $200 million in FY20 to just $140 million in FY24 as LEO providers like Starlink disrupt legacy contracts.

Question 4

Are they losing market share in the home broadband sector?

Accepted Answer

Yes, despite a 3.7% rise in fixed home revenue driven by NBN price realignments, the underlying subscriber base is shrinking. Optus recorded a 2.8% decline in NBN customer numbers as smaller, more agile challengers successfully poached price-sensitive users.

Optus HY results driven by cost cutting and ARPU growth

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