Optus Q4FY20: a challenging quarter likely to have implications for mobile ARPUs

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Optus Q4FY20: a challenging quarter likely to have implications for mobile ARPUs

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Optus Q4FY20: a challenging quarter likely to have implications for mobile ARPUs
On 28th May 2020, Optus announced its FY20 earnings update for the financial year ending 31st March. Some of the key highlights from the announcement included:
  • Revenue of A$8,954mn in FY20, down 1.6% over FY19 driven by a lower volume of equipment sales and increased mix of lower-margin devices. Equipment sales declined due to unbundling of mobile devices from service contracts and weaker consumer sentiment due to bushfires and COVID-19. These trends were partially mitigated by higher NBN migration revenue.
  • Operating EBITDA decreased 1.7% to A$2,652mn in FY20 due to lower handset volume sales and lower margins on equipment and NBN resale.
  • Overall net profit of A$402mn in FY20, down 39.0% over FY19. The free cashflow for the financial year was strong at A$1,396, which was up 36% compared to the previous year.

Contents

Our take

Optus 4QFY20 earnings update

List of charts/tables

Figure 1. FY20 Optus key financials (A$mn)

Figure 2. 4QFY20 Optus key financials (A$mn)

Figure 3. Operating and financial metrics – Optus Mobile

Figure 4. Operating metrics – Optus fixed broadband subscriptions

Figure 5. 4QFY20 Optus Enterprise key financials (A$mn)