- Optus has reached a settlement with the Australian Competition and Consumer Commission (ACCC) concerning past instances of unconscionable conduct and inappropriate sales practices between Aug 2019 and Jul 2023.
- The settlement includes a proposed civil penalty of AUD100m along with an Enforceable Undertaking requiring comprehensive reforms to the company’s retail and sales operation.
Limited financial impact with existing provisions.
- - Read this at SGinvestors.io -
- With Singtel maintaining robust operational performance, the penalty will likely have no effect on dividend policy, strategic capex guidance of S$2.5b for FY26, or the ongoing asset recycling program. The financial impact is effectively a one-time expense that has been appropriately accounted for.
Minimal commercial impact expected.
- - Read this at SGinvestors.io -
- The misconduct period (2019-23) is historical, and any reputational damage has likely already been reflected in Optus's current market positioning. Recent operational metrics support this view, with Optus adding 238,000 mobile customers in FY25 and achieving 5.7% y-o-y EBITDA growth despite ongoing regulatory scrutiny, suggesting consumer sentiment remains manageable.
Maintain BUY on Singtel
- Read more at SGinvestors.io.
