Optus HY results driven by cost cutting and ARPU growth

Optus leverages price hikes and headcount reduction to drive profitability despite losing market share to Telstra and TPG.

David Kennedy · Venture Insights14 November 2024Period: HY244 min read

58%↑

Increase in Optus EBIT (HY24)

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. While total revenue remained virtually flat at $4.022bn, the operator achieved a significant 58% rise in EBIT through aggressive cost management and ARPU growth. However, Optus continues to lag behind peers Telstra and TPG in mobile service revenue growth, and faces intensifying competition in the enterprise satellite market from LEO providers like Starlink, with satellite revenues falling from $200m in FY20 to $140m in FY24.

Key Takeaways

Optus EBIT surged 58% despite flat revenue of $4.022bn, highlighting a pivot toward profitability over volume.
Mobile service revenue grew 4.1% via price hikes, but postpaid connection growth of 0.2% lags behind Telstra and TPG.
Enterprise and Wholesale revenue collapsed by 17.8%, driven by a 30% decline in satellite revenue since FY20.

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Frequently Asked Questions

Optus achieved a 58% EBIT surge by pivoting from volume to margin through aggressive cost management. Operating expenses fell 2.5% as headcount reductions offset rising maintenance and inflationary pressures.

No, Optus is losing ground to Telstra and TPG in terms of subscriber acquisition. While price hikes drove a 3.4% increase in blended ARPU, postpaid connection growth stalled at just 0.2%.

A 17.8% collapse in this segment is largely driven by the erosion of the satellite business. High-margin enterprise satellite revenue fell to an estimated $140m in FY24, a 30% decline since FY20 caused by LEO providers like Starlink.

Despite a 3.7% rise in fixed home revenue, Optus is losing the subscriber war to agile players like Aussie Broadband and Superloop. NBN customer numbers dropped 2.8% during the half-year period.

Optus HY results driven by cost cutting and ARPU growth

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