Australian Telecom Sector "Optus 4Q26. Prices lift but Postpaid ...[ERRATUM]"

Research evidence excerpt

Australian Telecom Sector "Optus 4Q26. Prices lift but Postpaid ...[ERRATUM]"

Global Research

21 May 2026ab

Australian Telecom Sector Equities

AustraliaOptus 4Q26. Prices lift but Postpaid subs softer.

Singtel looking for strategic partner [ERRATUM] Telecommunications

Lucy Huang

Analyst

lucy.huang@ubs.com

4Q26 result - Mobile prices drive improving profitability +61-2-9324 2253

Singapore Telecom (Singtel), owner of Optus, reported 4Q26 results. Overall, Revs were Rachael Tan

+2% yoy in the quarter, with Mobile services +3.6% from continued benefits of price Analyst

rises. EBITDA +2.3% yoy with margins relatively flat yoy in the quarter. Within Mobiles rachael.tan@ubs.com

more specifically: i) total mobile net adds in the qtr declined -22k (vs +27k in 3Q), with +65 6495 7951

Postpaid subs declining -31k, offset by Prepaid growth of +20k, drivenby continuing Ailsa Lei

growth at Amaysim; ii) overall ARPUs +3% yoy due to timing of price rises, with growth Analyst

in both Postpaaid (+4% yoy) and PRepaid (+5%) yoy. ailsa.lei@ubs.com

+61-2-9324 3181

Prepaid mix continues to grow

Whilst Optus Mobile results continue to reflect capturing of mobile price rises with

Postpaid ARPUs lifting +$2/mth vs pcp, although we note some downtrading impact/

slower back book motion given headline price rise of $3 in Mar-25. We are watching

general structural trends however in the slow but steady migration to Prepaid plans,

with Prepaid growing its share of Mobile subs within Optus to 36%, +0.5ppts vs pcp, vs

historical trend of +1ppts pa. More importantly, ACMA has confirmed this week their

spectrum renewal price of $7.2bn for the industry (vs prev $7.4bn), which we view is

likely to continue to drive mobile price rationality in the market given industry ROICs still

remain sub-optimal.