Singtel Optus Pty, a wholly owned subsidiary of the Singaporean telecommunications company Singtel (ASX:SGT), has announced an extension of a contract with the Australian Taxation Office (ATO). The contract extends the existing $324.3m deal from the original 31 March 2015 end date to June 2018. In the agreement between the two groups, Singtel Optus provides all call centre, voice and data communication on behalf of the ATO. The contract agreement comes despite the fact that the ATO is investigating the taxes paid by Singtel when it bought Optus in 2011 for around $17.2bn. “On October 22 2014, the company received a statement of audit position," The company announced in November. "The statement of audit position will be further subject to an independent review within the ATO.”
The major tech contract from the ATO will give Optus more than 20,000 users in 35 different locations. The telecomm company is also planning on launching new digital initiatives to expand its userbase. During the peak 2014 tax period, July through the end of October, Optus managed 6.2m calls and averaged 69,000 calls per weekday for the ATO. “The Australian Taxation Office is one of our largest and most important customers," said John Paitaridis, Optus Business managing director. "The extension of Optus' contract demonstrates our proven ability to deliver managed ICT services to the scale, reliability and quality that the ATO and other leading Australian organisations require of their strategic partners.”
Shares of the parent company Singtel are traded on the ASX. SGT is down 1.5c, or .36 per cent, at $4.21 per share around 3:20pm on Thursday. SGT has advanced 36 per cent in the last 12 months and has made gains of 16.16 per cent so far this year.
Author: Matthew Dibb
Apr 09, 2015
Matthew has an extensive track record in equity markets and derivative advisory. Spanning a career in several investment banks and prviate wealth groups including Macquarie Bank, his specialist knowledge relates to capital market advisory and equity market analytics. Matthew has a diploma in Financial Advisory, Applied Finance and is ADA 1 & 2 accredited.