Australia's number two telco, Optus, has posted a 9.2 per cent fall in third quarter net profit amid flat mobile subscriber growth.
Its parent company Singapore Telecommunications (SingTel) said Optus' net profit for the three months to December 31 was $A160 million, down from $A177 million in the prior corresponding period.
At December 31, 2012, Optus had 9.565 million mobile subscribers, compared with 9.544 million at September 30, SingTel said in a statement.
While Optus had 58,000 net additions of postpaid customers in the quarter, the number of prepaid customers fell by 36,000.
SingTel said Optus' revenue fell 5.7 per cent to $A2.283 billion, compared to the prior corresponding quarter.
The company said revenue from the mandated reduction in the mobile termination rate from nine cents to six cents per minute fell $A47 million.
Mobile phone companies have to pay termination rates when a call is made on one network and terminates on another.
This charge is regulated by the Australian Competition and Consumer Commission (ACCC).
Singtel said equipment sales were down $A43 million due to lower shipment volumes as subsidies on devices - such as phones, broadband dongles - were cut.
Also, service credits associated with device repayment plans brought in last year also cut revenue by A$28 million.
However, SingTel said, lower revenues had not adversely impacted earnings before interest, tax, depreciation and amortisation (EBITDA).
"The group's operations in Singapore and Australia, as well as the associates, continued to deliver resilient performances against the competition," SingTel said in a statement.
During the quarter, Optus cut 305 staff, trimming its workforce to 8,764 by December 31.
Compared with a year ago, the number of employees was down 962, or 9.9 per cent of its workforce, the company said.
At 7.40am, SingTel shares were down five cents, or 1.78 per cent, at $2.76 in local trade.
The stock is listed in both Australia and Singapore.