Amaysim sees $2.4M net loss despite new subscriber surge

Amaysim sees $2.4M net loss despite new subscriber surge

The publicly-listed telco reported statutory net revenue of $294.0 million for the period

Amaysim has posted a $2.4 million net loss after tax (NPAT) for the six months ending December 2017, a 128.6 per cent year-on-year tumble from the profit it posted for the same period the previous year.

The statutory loss was mainly driven by investments made by the company to drive future business growth, including new product launches, investment into new verticals and integration costs incurred post the acquisition of Click Energy.

The publicly-listed telco reported statutory net revenue of $294 million for the period, up 115.1 per cent, driven largely by strong subscriber growth across the group and the addition and acquisition of new verticals.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $17.8 million – after adding back costs incurred in connection with the integration of its Click Energy business, investment in new mobile products, and the launch of ‘amaysim devices’ – representing a 2.9 per cent year-on-year increase.

The group reported strong growth in subscribers across all its verticals, with mobile subscribers up 10 per cent, to 1.127 million. Energy subscribers, meanwhile, were up by eight per cent to 185,000.

After launching its National Broadband Network (NBN) plans in the second half of the 2017 financial year, the telco’s broadband business has achieved decent growth, with broadband subscribers of 13,000 well up from 5,000 in June 2017.

“Our broadband business has performed well and within management’s expectations. Encouragingly, around 40 per cent of Amaysim NBN subscribers have a relationship with our business, affirming our cross-sell strategy and strength of customer relationship,” Amaysim CEO and managing director, Julian Ogrin, said.

Amaysim told shareholders in its latest half-yearly financial report, released on 26 February, that the growth in subscribers was largely backed by long-term growth initiatives, including new product launches and successful marketing campaigns.

“We are achieving strong subscriber growth across our business, adding new customers every day,” Ogrin said. “After completing our diversification strategy, we have been focussed on broadening each vertical’s product offering, increasing brand awareness and executing on targeted cross-sell campaigns across the base.

“Traditional, single-vertical customer acquisition models are expensive because the only way for these businesses to grow customers is to effectively buy them in the open market through marketing and promotions.

“Our strategy is different. We will predominantly drive growth through our mobile vertical, which remains our most cost-efficient channel for acquiring new households with a low cost-per-acquisition and efficient cost-to-serve,” Ogrin said.

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