Optus customers appear to be consuming more media as people increasingly use their phones to access the internet and download content. The telco posted its results for the first three months of 2013 today, the last quarter of its financial year. Optus has added more postpaid customers and is subsidising handsets less, indicating that people are willing to pay more for devices with the functions that they want.
Lower customer acquisition costs propped up mobile earnings for Optus over the quarter. Revenue for the mobile division fell 7% to $1.35bn. Overall the company reported earnings before interest, taxes, deductions and amortisation (ebitda) of $700m for the quarter, slightly up (3%) despite falling revenues (down 5% to $2.17bn).
The company lost 2,000 prepaid mobile customers over the quarter but gained 28,000 post paid customers. Compared to 31 March 2012, the firm now has 200,000 fewer prepaid customers and 300,000 more postpaid customers. Data revenues continue to grow, and more of the data revenue comes from action other than standard SMS - indicating customers are consuming more media via their devices. However, average revenue per customer is shrinking.
Acquisition cost per customer for the last quarter was lower at $112, compared to $134 the previous quarter. Optus said that was because it was subsidising handsets less.
The company said churn had fallen slightly during the quarter. It did not disclose market share for the quarter, but claimed a 31% share for the previous quarter.
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