Optus cost-cuts ring in profits

Company News

Singapore Telecommunications Limited (ASX:SGT) owned Optus saw its second-quarter profits rise by 33 per cent to $218 million.
 
The mobile operator is attributing the result to cost efficiencies, including scaling back its subsidies on handsets, streamlining distribution channels and cutting staff.
 
Optus also reduced its retail footprint, cutting many re-sellers from its distribution channel.
 
The company slashed more than $200 million in expenses in the quarter ended September 30.
 
Optus Australia Chief Kevin Russell says cost-cutting is the first leg of his three-prong strategy to revive Optus.