SingTel insists Optus satellite business is 'profitable, discrete, strong'

Each satellite is likely worth A$2b.

According to Nomura, there has been a lot of press recently on potential sale of Optus satellites. Management stated that no decision has yet been made. 

Valuation will be key, which the management will assess relative to its earn-out potential and capex investment. 

Here's more from Nomura:

Optus satellite is a profitable, discrete and a strong cashflow businesses (~80% margins we estimate). There are currently 5 satellites in the orbit and it is launching one more soon (each satellite costs about AUD250-300mn we understand).

We estimate Optus satellites could be around AUD2bn in value. 

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