Amaysim’s NBN play pays off despite broadband business loss
- 28 August, 2017 13:04
Amaysim CEO, Julian Ogrin
Amaysim activated over 1000 new National Broadband Network (NBN) customers in just two months, with the telco’s total broadband subscriber tally passing 5000 as at the end of June.
The Australian Securities Exchange (ASX)-listed company released its annual financial report on 28 August, revealing a 29 per cent year-on-year surge in revenue to $326.7 million, and a 35 per cent increase in pre-tax earnings (EBITDA) to $33.8 million for the year ending June.
During the year, the company launched its amaysim-branded NBN plans, with the new offering helping to boost its broadband subscriber tally during the period.
“amaysim nbn is rolling out according to plan, with a focus on marketing to our existing subscriber base. We experienced early success with good flow of sales and over 1000 NBN subscribers activated over May and June 2017 at an ARPU [average revenue per user] of approximately $68, bringing total subscribers for broadband to approximately 5000 as at 30 June 2017,” the company’s CEO and managing director, Julian Ogrin, said.
In August 2016, amaysim acquired fellow telco, Australian Broadband Services Pty Limited (AusBBS), a move which accelerated its broadband strategy and provided the company with access to a proven proprietary platform purpose-built for broadband. The AusBBS team and its technology have since been integrated into the amaysim business.
Regardless of these broadband milestones, amaysim’s broadband business achieved an underlying EBITDA loss of $2.6 million for the year.
Meanwhile, amaysim’s mobile business reported statutory net revenue of $278.5 million, up by 10 per cent on the previous year’s results, and underlying EBITDA of $43.1 million. At the same time, the company’s mobile businesses saw its subscriber numbers surge past one million.
“Our market leading position in this segment has created a strong competitive edge and enabled the company to deliver robust organic growth in subscribers of 11 per cent to 1.074 million and a low churn rate of two per cent,” Ogrin said.