tls doing better than optus

SECTION III : OPTUS
REVIEW OF OPTUS OPERATING PERFORMANCE
For The First Quarter Ended 30 June 2006

Operational EBITDA declined by 6.9% with margins at 26.1% from the continuing impact of mobile capped plans and consequent increases in traffic expenses and lower consumer fixed line margins.

Net profit for the quarter, excluding the impact of exceptional items, fell 27% to A$109 million.

Free cash flow amounted to A$54 million, down 63% due to lower operational EBITDA and higher cash capital expenditure related mainly to the continuing rollout of 3G mobile and the ULL network, as well as increased spend on the new Sydney office premises fitout. The ratio of cash capital expenditure to operating revenue was 16%, compared to 15% a year ago.