Lasting customer relationships are our priority
The past financial year saw Optus strengthen our focus on network resilience and rebuilding trust with our customers as we looked to the future following the November 2023 network outage.
This year’s performance demonstrates a resilient company and culture, with stable EBITDA and EBIT when compared with the year prior. Momentum however began to recover in the second half, driving a 4.8% increase in EBITDA, whilst EBIT grew by 20% to A$147 million. Over the year, Optus added 116,000 customers to our mobile base, including solid gains of 108,000 prepaid customers.
The outage was a challenging day for our customers and the community. We are disappointed and deeply sorry that we fell short of delivering the services expected of us. In response, we have made important changes to systems and processes, including the reconfiguration of some key equipment and enhancing processes to allow restoration activities to occur faster remotely. Delivering a reliable experience for our customers is our focus and we have committed additional investments into further strengthening our network and technology resiliency.
We also continued our investments in cyber security, delivering on our commitments to keep customer data safe. We will continue to partner with global leaders in cyber security and collaborate with the industry to ensure we collectively stay vigilant.
Rebuilding trust
We are excited to start executing on our new regional network sharing agreement with TPG Telecom which will mark a new era for telco services in Australia. The agreement, which is subject to regulatory approval, demonstrates our commitment to providing regional and rural customers with real choice as well as a network that delivers better capacity, speed and service quality. Under this agreement, TPG Telecom will gain access to 2,444 Optus mobile network sites in regional Australia, increasing its current national 4G coverage from around 400,000 square kilometres to around 1,000,000 square kilometres and 98.4% of the population. The agreement will reduce combined 5G network rollout costs in regional Australia, which will enable the deployment of 5G infrastructure to be completed two years earlier than previously planned.
Meeting customer needs
Over the year, we have continued to simplify and improve our customers’ experience in several key areas. We introduced enhancements to the My Optus App, bringing more meaningful experiences to our users, including an improved shopping experience, 24/7 messaging support, and easy payment options.
We have transformed our contact centres through integrated automation, AI, data and analytics which have contributed to a reduction in customer complaints, improved call centre customer transfer rates and a 10% year-on-year uplift in first call resolution rates.
At the same time, we are investing in ‘mobile-first’ solutions for our enterprise and business customers. Optus has partnered with Lendlease to deliver a mobile-first experience for its employees and those who live and work in its real estate precincts. Optus’ network will enable Lendlease to collaborate and monitor data in real time, enabling efficient decision-making and streamlined project management.
Our small business customers have told us that building digital capability is one of the key challenges that they face. To help tackle this, we have created FutureFit, a series of workshops to help enterprises go digital and learn to identify and respond to business risks. Participants left the sessions with a personalised strategy for their business, including how to leverage technologies such as AI, social media, digital marketing tools and website development.
We are always looking for ways to bring new technologies to our customers and a significant step forward was the SpaceX partnership announcement made in July 2023. Optus’ work with SpaceX aims to bring the coverage capabilities of satellites direct to compatible mobile handsets without the need for customers to buy additional equipment.
As a key contributor to the economy, it is imperative that we do business responsibly. This year we launched a new 5G modem which is made with a minimum of 95% recycled plastics and packaging that is 100% recyclable, with no single-use plastics. Its packaging also includes guides on how customers can recycle their old modem.
Digital safety and inclusion
Scam protections remain extremely important to us and our customers. Working with key partners such as the Australian Financial Crimes Exchange, we are pioneering market-leading technology and initiatives that better protect our customers from scammers. Optus has implemented a series of anti-scam measures, allowing us to block more than 380 million scam calls and 130 million SMS scam messages since December 2020. ScamWise and Call Stop innovations were launched this year to protect our customer community and we remain committed to playing our part to address this national priority alongside business, government and the broader community.
We continue to enhance the digital safety, well-being and capability of young people and families with educational workshops, guides and resources under our Digital Thumbprint programme, which has educated more than 618,000 Australian students since it launched in 2013.
One of the most effective ways to address the digital divide is Optus’ Donate Your Data programme. Since its inception, the partnership has provided 37,500 students and their family members with free SIM cards loaded with calls, texts and data, which has supported children with online learning and education. The unique programme has expanded to include additional charities, and to date, over 44,500 people in total, including over 5,700 First Nations participants, have received support with free calls, texts and data. This equates to A$30 million of equivalent value delivered across the life of the programme.
Best we can be for our customers
There is no doubt that we have faced challenges over the past 18 months, however we are focused on rebuilding trusted relationships with our customers through the dedication, energy and resilience of our people.
In the year ahead, we are focused on meeting – and exceeding – our customer expectations: in the resiliency of our network, simplifying their experiences and being a more efficient company to deal with. Our customers’ needs will always guide our decisions, and we are energised and optimistic about what the future holds for them and the communities we serve.
