Optus HY results driven by cost cutting and ARPU growth

Cost management and mobile ARPU growth offset stagnant connections and intensifying LEO satellite competition.

David Kennedy · Venture Insights14 November 2024Period: H1 FY254 min read

Last updated 6 May 2026

58%↑

Increase in Optus EBIT (H1 FY25)

3.4%↑

Blended Mobile ARPU growth following price hikes

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Abstract

This report analyses Optus's half-year results for the period April to September 2024, highlighting a period of stagnant revenue growth at 0.1% year-on-year. While mobile and home segments showed resilience through price-driven ARPU growth, the enterprise and satellite divisions faced significant headwinds, with wholesale and enterprise fixed revenue dropping by 17.8%. The analysis explores the ongoing impact of the 2023 network outage on customer trust and the rising competitive threat from LEO satellite providers like Starlink.

Key Takeaways

Optus achieved a 58% surge in EBIT despite flat revenue of $4.022bn, highlighting a successful pivot to cost-cutting and margin protection.
Mobile service revenue grew 4.1% through price hikes, but postpaid connection growth of 0.2% significantly lagged behind Telstra's 5.3%.
The Enterprise and Wholesale segment collapsed by 17.8%, driven by a structural decline in satellite services and lower ICT equipment sales.

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Frequently Asked Questions

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.

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.

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.

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.

Abstract

Key Takeaways

Optus achieved a 58% surge in EBIT despite flat revenue of $4.022bn, highlighting a successful pivot to cost-cutting and margin protection.

Mobile service revenue grew 4.1% through price hikes, but postpaid connection growth of 0.2% significantly lagged behind Telstra's 5.3%.

The Enterprise and Wholesale segment collapsed by 17.8%, driven by a structural decline in satellite services and lower ICT equipment sales.

Frequently Asked Questions

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