Profit Slips Away From Optus In The Last Quarter

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Profitability for Optus, Australia’s second biggest telecommunication group, has deteriorated.

Net profit fell 1.8% to $164 million in the quarter to June 30.

Total mobile revenue for the SingTel owned telco declined due to the continuing effect of the industry-mandated reduction in mobile termination rates and lower equipment sales.

Optus says underlying Net Profit rose 12.3% to $187 million when excluding exceptional items relating to the costs of work force restructuring. Optus cut 350 jobs in May.

Revenue declined 3% to $1.69 billion because of price competition and a decline in legacy data revenues. EBITDA for the Australian enterprise business improved 2%.

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