CABLE & WIRELESS OPTUS DELIVERS STRONG GROWTH IN REVENUE AND PROFITABILITY

Cable & Wireless Optus today announced a 29 per cent increase in revenue to $4.1 billion and strong growth across the company's three business divisions.

All measures of profitability grew strongly. The company's EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) increased 23 per cent to $1.163 billion.

Profit before tax and abnormals was $295 million up from $111 million in the same period last year.

Profit after tax was $265 million for the year-ended 31 March 2000. That compares with a $10 million loss for the same period last year.

Cable & Wireless Optus Chief Executive, Chris Anderson, said the result showed the strength of the company's product mix and the clarity and discipline of its focused strategy.

"We have delivered on all commitments made at the half year - including substantially increasing our profit, further improving our efficiency and delivering significant revenue and customer numbers," said Mr Anderson.

"And we have delivered sustained, period-on-period improvement in profitability and performance for the past three years."

Other highlights of Cable & Wireless Optus' results to 31 March include:

• EBIT (Earnings Before Interest and Tax) up 40 per cent to $383 million
• Mobile revenue up 21 per cent to $1.762 billion
• Data & Business revenue up 28 per cent to $1.516 billion
• Consumer & Multimedia revenue up 55 per cent to $867 million

In the 12 months to 31 March, Cable & Wireless Optus added more new mobile customers than any other carrier. The company now has 2.6 million mobile customers, up 42 per cent from the corresponding period last year. Optus Mobile has added market share in each of the last seven quarters.

In Data & Business, the main drivers for growth were data and IP which now account for 36 per cent of the division's total revenue. To date, Cable & Wireless Optus has connected nearly 3,000 buildings in seven capital cities using fibre, microwave and leased lines. This is 64 per cent more than last year.

Capacity sales continued to expand corporate business revenue and profitability.

Cable & Wireless Optus' Consumer & Multimedia division achieved extremely strong growth. Its revenue increase of 55 per cent was the highest of the company's three divisions. The number of subscribers on Cable & Wireless Optus' broadband network increased by 53 per cent to 415,000.

Bundling strategies also continued to deliver excellent results, with broadband ARPU (Average Revenue Per User) up 39 per cent.

During the period, the company trebled the number of broadband customers who take multiple Optus services.

Mr Anderson said that the company's results offered a platform for future growth.

"We have achieved consistent growth in revenue and profit. But we have maintained our focus and discipline. Costs are tightly managed and our balance sheet is strong.

"The results reflect our substantial business and competitive strengths, our tight operational focus, our extensive modern networks and range of products combined with one of Australia's best known brands."

For more information:
Stephen Woodhill
Cable & Wireless Optus
Phone: (02) 9342 7850