OVUM評論：Optus results shows its strength in mobile

The key driver of Optus results is generally its mobile division. Today’s result is no different with mobile now representing 63% of revenue and over 68% of EBITDA. In Ovum’s view the results show the strength of the mobile industry in Australia, but also potentially point to weakness at Telstra.

Optus added 254,000 new mobile customers in the quarter its strongest quarterly performance in nearly five year. Ovum notes that well over half of mobile connections added in the year were mobile broadband connections rather than handset subscribers.

Ovum believes that the traditional voice handset subscriber market is essentially saturated, and it is non-handset devices which will drive most growth in the mobile industry going forward.

Much revenue growth will be driven by handset subscribers spending on data, often as they upgrade to smartphones. This was evident in Optus results but the mobile handset and voice market is essentially a churn game – and Optus looks to be performing well.

Reversing a recent trend, Optus also managed to increase mobile EBITDA margins. This is impressive and Optus’ strategy of spending big to acquire high-value iPhone, amongst other smartphone users, is beginning to deliver to the bottom line.

Unlike it is mobile division, fixed consumer and SMB was largely flat as its on-net migration strategy continued. In this market, we do not believe it is Optus that is giving Telstra headaches but rather the smaller more nibble ISPs, although in the current quarter Optus has announced further price cuts which should aid acquisition.

There is however potential upside for Optus as the NBN rolls out. This will potentially enable it to increase fixed broadband coverage, support continued mobile growth, and remove some competitive advantage from the incumbent Telstra.