Amaysim Exits Broadband After $3 Million Sale
Amaysim has exit the fixed line broadband business after 18 months, selling its customer base for $3 million, in a bid to prioritise its mobile and energy division.
The telco has entered an Asset Sale Deed with Southern Phone, to sell its its fixed line broadband customer base for “approximately $3 million” – payable in two tranches, subject to a number of conditions.
Amaysim expects the transaction to complete by the end of the month.
Chief Executive Officer, Peter O’Connell, claims the decision to exit broadband was “not easy”, and follows “unsustainable high” wholesale costs and intense competition.
O’Connell asserts the transaction will enable Amaysim to simplify operations, whilst defending and growing its core mobile and energy business.
“We will continue to explore additional products and services that we can offer to our significant mobile subscriber base”
“However, we will do this in a way that is profitable, delivers a great customer experience and aligns with our asset-light business model.”
Amaysim expects a non-cash impairment of around $7 million pre-tax, and will write down the carrying value of its broadband assets to zero.
The impairment charge is expected to finalise after the transaction completes, and will be removed from underlying performance results in the 2019 financial year.
Southern Phone is considered one of regional Australia’s largest providers of fixed line, mobile and internet communications services.
The telco will migrate Amaysim’s fixed line broadband customer base onto its platform in November, with affected customers not expected to feel a service disruption.