Energy shift lifts Amaysim

Diversification contributes to earnings growth

AMAYSIM has announced record revenue of $577.6 million, up 77 per cent, after a year of expansion and strong subscriber growth across its energy and telecommunications businesses.

The company has also announced a review of its broadband business and says it will no longer sell mobile devices, as it moves to optimise shareholder returns.

Diversification into energy has helped Amaysim grow earnings before interest, tax, depreciation and amortisation by 11 per cent to $27.6 million. Close Change

Amaysim acquired Click Energy in early 2017 and has now had a full year of contribution from the energy business, which now accounts for about 54 per cent of group revenue.

Managing director Peter O’Connell (pictured right) said the year to June 30, 2018, had been a year of positioning for future growth and ensuring Amaysim remained competitive in the tough telco market.

“I’m pleased to be delivering shareholders a solid result that MD PETER O’CONNELL

has been achieved in a highly competitive environment and one that reinforces that Amaysim is no longer just a telco – we are an asset-light utilities provider focused on customer experience,” Mr O’Connell said in a statement.

Amaysim’s mobile business increased subscribers by 7.8 per cent to 1.16 million, statutory revenue fell seven per cent to $259 million.

Average revenue per user (ARPU) was down to $17.87 from $22.46 a year ago – reflecting increased competition in the mobile sector.

The energy business performed strongly, with a 15.9 per cent increase in subscriber numbers to 191,000 and a two per cent lift in ARPU to $142.96.

Amaysim’s statutory net profit for 2017-18 was down by 76 per cent to $2.7 million as a result of depreciation and impairment charges.

No final dividend was announced, with the company saying that approach was expected to continue in the short term.

Amaysim has flagged continued earnings growth in 2018-19 from its energy business and cost cuts.

Shares in the company were up 5.5 cents, or 5.34 per cent, to $1.10 at close yesterday.

AMAYSIM IS NO LONGER JUST A TELCO

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