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Optus CEO resigns amid network outage fallout, Singtel shares dip

EditorPollock Mondal
Published 21/11/2023, 12:04 am
© Reuters.
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SINGAPORE - In the aftermath of a significant network disruption in Australia, Optus CEO Kelly Bayer (OTC:BAYRY) Rosmarin has stepped down from her role. The resignation was announced today by parent company Singtel on the Singapore Stock Exchange. The departure follows a recent admission by Optus during a parliamentary hearing regarding its lack of a comprehensive contingency plan.

Michael Venter, currently the CFO, will serve as interim CEO while the search for a permanent replacement is underway. As part of the leadership transition, Peter Kaliaropoulos will also join as COO starting November 22.

Under Rosmarin's tenure, Optus experienced market share growth and financial improvements but faced setbacks requiring renewed efforts to rebuild customer trust. These challenges have been underscored by two significant scandals since April 2020, highlighting the need for improved risk management and operational oversight within the company.

The shake-up at Optus comes amidst a broader context where Singtel's shares have experienced a decline of over 9% year-to-date. Despite this downturn, analysts maintain a strong buy position on Singtel with a target price set at S$3.02.

In related market movements, Telstra (OTC:TLGPY) Group Ltd's shares showed a minor decrease of 0.5%, demonstrating relative stability since the beginning of November and reflecting an overall 3% decrease year-to-date. This stability suggests that Telstra may be in a position to capitalize on Optus's operational challenges by potentially attracting customers looking for alternative service providers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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