Optus says the full-year net profit delivered to its Singaporean parent company Singtel dropped 39 per cent to $402 million amid a “challenging year for the industry”.

Revenue for the 12 months to March 31 dropped 2.0 per cent to $8.95 billion as higher NBN migration revenue offset lower equipment and service revenue.

For the quarter, operating revenue dropped 8.6 per cent to $2.1 billion, while its net profit plunged 84 per cent to $37 million.

Optus said its mobile service revenue was down 6.0 per cent as more customers elected for SIM-only plans and data price competition continued.

“Equipment sales also decreased sharply due to lower sales of mobile devices as consumers retain their handsets for longer periods, the removal of handset subsidies and delivery disruptions from a major logistics supplier,” Optus said on Thursday.

Equipment sales were down 22.3 per cent for the quarter to $378 million and down 7.3 per cent for the year to $1.8 billion.

Optus said its prepaid subscribers fell 1.2 per cent year-on-year to 3.8 million, while its postpaid subscribers grew by 2.5 per cent to 5.8 million.

The number of customers on data-only SIMs grew 5.8 per cent to 1.2 million.

“It has been a challenging year for our industry as consumer demand has slowed compared with the previous year and these challenges have intensified in the last quarter as Australia managed through natural disasters and COVID-19 impacted the economy,” Optus chief executive Kelly Bayer Rosmarin said.

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