Shares in telco challenger Amaysim have fallen to an all-time low after a net loss of $2.37 million took the shine off a first-half of record revenue generation.
Amaysim more than doubled revenue for the six months to December 31 to $294 million courtesy of higher subscriber numbers on its growing mobile and broadband services, and new customers taken on through the Click energy retail business acquisition.
The costs of integrating investments such Click, acquired in May, impacted Amaysim’s first-half bottom line and Amaysim also scrapped its dividends, saying the company will instead focus on investing for growth.
At 1442 AEDT, shares in Amaysim were down 7.5 cents, or 4.9 per cent, to $1.45, their lowest level since the company’s listing in 2015.
New products and the impact of Click contributed to the $10.5 million reversal in net profit after a previous half-year profit of $8.3 million.
A rising headcount doubled workforce expenses and marketing costs quadrupled to more than $16 million, in both cases driven by the six-month contribution of Click, the company said.
Amaysim’s business is now in three segments, led by its mobile business – servicing Amaysim and Vaya brands – where subscribers grew 10 per cent to 1.1 million in December.
However, revenue fell away by seven per cent after a 15 per centfall in average revenue per user (ARPU) as existing subscribers migrated to cheaper plans.
Mr Ogrin said Amaysim is looking at ways to attract customers to more costly mobile plans.
The telco provider also launched its online store in October, shipping some 16,300 devices.
Amaysim’s energy subscription base grew by 18 per cent to 185,000 customers while revenue was $153 million, with ARPU at $146.50, up from $139.82 six months earlier.
When Amaysim acquired Click it said the business would generate full-year revenue of $215 million for 2016/17.
Amaysim has locked in electricity wholesale agreements for the 2019 financial year, outside Victoria.
“With energy costs top of mind for customers across the country, we have a terrific opportunity to cross-sell,” Mr Ogrin said.
Broadband revenue was in line with management expectations at $3.6 million.
Looking ahead, Mr Ogrin said Amaysim is now poised to cross-sell.
“We have the right portfolio of products now in place and an increased level of brand awareness.”
Amaysim scrapped its interim dividend, after paying an unfranked 4.0 cents per share in 2017, and the company has flagged there will be no dividends paid for the medium term as it focuses on investment and potential acquisitions.
AMAYSIM’S LOSS ON RECORD REVENUE
* First-half net loss of of $2.4m, compared to a profit of $8.3m a year earlier
* Revenue up 115pct to $294m
* No interim dividend.