OPTUS OUTPERFORMS SECTOR IN TIGHTENING MARKET

Optus grew revenues at twice the industry average and continued to take significant market share in its third quarter results issued today.

Optus, now 100 per cent owned by Singapore Telecommunications (SingTel), increased revenue to $3.7 billion (up six per cent) and EBITDA to $794 million (up 23 per cent) in the nine months to December 31, compared with the same period last year.

EBITDA margins also increased significantly in the tough trading environment.

Operating costs were held tight - only up one per cent year-on-year while operating cash improved 91 per cent to $544 million compared with the same period last year.

However - as flagged at the half year results last September - changes in accounting policy (to comply with SingGAAP); higher depreciation charges and one-off charges for losses associated with the One.Tel collapse and for the cost of the strategic review, all affected the bottom line.

The SingGAAP adjusted loss for the nine months was $213m. As reported the loss at the half year was $174m.

Highlights of the third quarter results include:

• Operating revenue up six per cent - twice the market average.
• Mobile revenues up 14 per cent and mobile customers up 18 per cent to 4.0 million.
• Operating cost up by only one per cent.
• Headcount reduction of 1000 in the three months to December.
• Optus Business Division continuing to win large corporate accounts.
• Optus Business IP and revenue up 12 per cent - with 50 per cent of new corporate customers now connected to Optus fibre or DSL.
• Nearly half of the 559,000 broadband customers take 'bundled products'.

The Chief Executive of Optus, Chris Anderson, said the bottom line result reflected some specific one off factors as well as a tough trading environment. Operationally, the business continues to perform well.

"This is undoubtedly the toughest trading environment that Optus has faced in its 10 year history. However, the company is performing well - revenue growth is twice the industry average and we are continuing to take significant market share."

"We have costs under tight control and are committed to managing this year's capex within our budget."

"This result positions us well to deliver on our full year expectations."

For more information contact:
Stephen Woodhill
Optus Public Affairs
Tel: (02) 9342 7850