Bad signal in profit hit to Optus
OPTUS has suffered a slump in quarterly profit as restructuring costs burn a hole in the telco’s books.
The company, owned by Singapore Telecommunications, yesterday reported a net profit of $105 million for the three months to September. That was down 36 per cent from $165 million for the same period a year earlier.
Optus has been aggressively shedding jobs as it overhauls its internal structure and manages operating costs. Lower payments for customers moving to the national broadband network also took a toll.
The telco has been investing heavily in content and its mobile network but has come under scrutiny in recent months.
Its efforts to exclusively broadcast the soccer world cup this year failed amid ongoing technical problems.
Optus was also singled out in the latest Telecommunications Industry Ombudsman report, which highlighted a 35 per cent surge in complaints from the telco’s customers the past financial year.
In a statement yesterday, the telco pinned that slide on “seasonality and intense competition”.