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Optus profit slumps as poor consumer sentiment bites

“The other impact we have had is a global logistics supplier who has had cyber security issues. That resulted in delayed shipping, being unable to fulfil orders, lower inventory levels.”

The poor fourth quarter weighed on Optus’ full-year numbers as well, with net profit for the full year ended March 31 falling 40 per cent (year on year), from $659 million to $402 million.

Operating revenue for the full year was down 2 per cent to $8.9 billion, as more fixed-line customers migrated to the National Broadband Network. Meanwhile, full-year earnings were also 2 per cent weaker at $2.6 billion, reflecting weakness in Optus’ Business division and lower retail fixed and equipment sales.

But Ms Bayer Rosmarin said the mobile business was “very healthy”. Optus’ consumer revenue grew by 1 per cent in the financial year, while full-year earnings grew by 3 per cent.

Ms Bayer Rosmarin said the company was assessing the financial impact the coronavirus pandemic would have on the business, but said the telco provider’s decision to suspend payments for Optus Sport would not have a “material impact”.

“We’ve been working through that. We’ve been looking at all the implications. Our main priority has been to keep Australians connected and to help them be optimistic about facing the future together,” she said.

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