Optus says third quarter net profit grew by 16 per cent with mobile revenues and customer numbers continuing to rise.

Australia's second largest telco posted net profit of $165 million for the three months to December 31, up from $143 million in the previous corresponding period.

Net profit for the nine months to December 31 was $456 million, up 17 per cent on the $390 million in the previous corresponding period.

SingTel shares were steady at $2.37 soon after the market opened this morning.

The company's operating revenue was $2.3 billion in the third quarter, up 4.8 per cent on the same period last year, reflecting double-digit growth in mobile services revenue.

Optus' parent company Singapore Telecommunications reported a $S991 million ($806.9 million) net profit for the third quarter, up 24 per cent on the previous corresponding period.

Revenue of $S4.45 billion ($3.62 billion) for the third quarter represented a 20.2 per cent increase on the previous corresponding period, and was driven by growth in its Singapore and Australian businesses and a stronger Australian dollar.

"The Singapore and Australia businesses stood out for their exceptional performance in mobile under highly competitive market conditions," SingTel chief executive officer Chua Sock Koong said.

Revenue from Optus’ mobile revenue in the three months to December 31 was $1.46 billion, up 9.6 per cent on the previous corresponding period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) from mobiles was $358 million, up 5.3 per cent on the previous corresponding period.

EBITDA margin was relatively stable compared to the previous third quarter at 25 per cent.

Optus added 19,000 customers in the third quarter to take its total customer base to 8.24 million.

Post paid customers grew by 164,000 to over just over four million.

A tightening of policy saw 272,000 inactive prepaid customers deactivated, resulting in a decline of 145,000 prepaid customers to a total of 4.2 million.The number of 3G customers grew by 8.7 per cent to 3.34 million in the quarter.

Optus said its customer growth was a result of refreshed wireless broadband plans, smartphone plans, unique content and applications and it timeless plan that allows unlimited calls and SMS within Australia.

The mobile business contributed 63 per cent of Optus’ total revenue, and 68 per cent of EBITDA.

Optus’ business and wholesale fixed-line divisions saw a 2.9 per cent drop in third quarter revenue on the previous corresponding period to $500 million.

EBITDA for the division was also down 2.9 per cent to $121 million.

The falls were a result of weaker corporate spending on telecommunications and lower wholesale international voice revenues.

The consumer fixed-line division’s revenue dropped by 2.5 per cent in the third quarter compared to the previous corresponding period to $346 million.

However revenue from voice and broadband customers on Optus’ network, known as on-net customers, grew by 4.8 per cent to $271 million.

On-net telephone customers grew in the third quarter to just over 1 million, while on-net internet customers rose by 8000 to 913,000.

Optus’ operating expenses in the three months to December were $1.78 billion, up 4.6 per cent on the previous corresponding period due to higher administrative, sales and staff costs.

The telco had 10,500 employees at December 31, down 21 from three months earlier and down 139 from 12 months earlier.

AAP