That’s much better than the consumer sector, where EBITDA rose just 2.6% to $1.9 billion.
Unfortunately, Singtel has discontinued providing a separate disclosure of the enterprise division income statement, which was included in the 2021 results.
However, based on disclosures made in 2021, it would appear that the Optus business generated approximately $140 million in EBITDA based on revenues of over $1.2 billion.
A presentation slide pack released by Singtel said profits had increased in Optus’ business due to “good mobile performance and cost management”.
Optus Chief Executive Officer Kelly Bayer Rosmarin said Optus’ business recorded the third consecutive year of EBITDA growth.
She said that in fiscal 2022, the company launched an integrated mobile call recording feature and unveiled a 5G Innovation Hub, which allowed business customers to test 5G software products.
Bayer Rosmarin succeeded in improving the performance of the consumer division thanks to the increase in the average revenue per user and the increase in its market share.
Optus’ total mobile customer base grew by 207,000 in the six months to March 31.
Singtel’s bottom line was muddied by a $317 million write-down for a lost tax dispute with the Australian Taxation Office. It appealed against the judgment of the Federal Court but recorded the provision in its accounts.
Additionally, Optus’ bottom line includes a dramatic reduction in payments from NBN Co for customers migrating from Optus to NBN.
If you remove NBN payments, Optus revenue went from a loss of $21 million in 2021 to a profit of $216 million.
Bayer Rosmarin said product innovation and improved customer experience were key strategic differentiators.
Optus is bracing for several regulatory fights, including trying to stop a mobile tower joint venture between Telstra and TPG Telecom in the Australian region, and NBN Co’s new hybrid pricing model.
Telstra and TPG filed their application for regional joint venture authorization with the Australian Competition and Consumer Commission this week. A redacted version of the document is expected to be released by the ACCC next week.