Amaysim has swung to a $3.7 million first-half profit, from a $4.8 million loss a year ago, after Australia’s biggest mobile virtual network operator relaunched its mobile business.
But Amayim’s revenue for the six months to December 31 was down 7.1 per cent to $244.4 million as average revenue per mobile subscriber declined 15.4 per cent to $22.34.
Amaysim grew its subscriber numbers by 41,000 during the period through organic growth after signing a new wholesale deal with Optus, which provides Amaysim’s mobile service.
It added another 41,000 through the $7.8 million acquisition of Jeenee Mobile, for a total of 706,000 recurring subscribers as of December 31.
“Increased investment in mobile marketing initiatives has delivered exceptional subscriber growth during the period,” chief executive Peter O’Connell said.
But he said the company was delaying marketing its subscription energy plans until June 2020 until there was “regulatory stability” after some regulatory changes.
“We believe a major shift in Australia’s energy market is imminent and with our new subscription energy plans now live in NSW, Victoria and Queensland, we are well placed to take advantage of his structural change,” Mr O’Connell said in a statement.
Amaysim says its subscription energy plans work similarly to a mobile plan, with customers paying upfront for electricity plans that give them a set number of kilowatt hours a month.
Mr O’Connell said Amaysim was on track to achieve its guidance of full-year earnings of $33 million to $39 million after making $24 million in earnings before interest, tax depreciation and amortisation in the first half.
Mr O’Connell told analysts on a conference call on Monday he thought the TPG-Vodafone merger that was given Federal Court approval this month after regulators tried to block it was good news for Amaysim.
“Three strong carriers is really good for us because it gives us choices and competition at the carrier level,” he said.
Following the success of the Jeenee acquisition, Mr O’Connell said said Amaysim would consider further “bolt-on acquisitions” that would allow it to leverage its operating structure.
At 1517 AEDT, Amaysim shares were down 3.0 per cent to 32.5 cents.
AMAYSIM RETURNS TO PROFITABILITY IN FIRST HALF
* Revenue for the six months to December 31 up 7.0pct to $244.6m compared with the same period in 2018
* A net profit after tax from continuing operations of $3.7 million, compared to a $4.8 million loss a year ago
* No dividend