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Amaysim Revenue Up 76%, Closes Tech Store

With investors buzzing over its proposed sale to Optus, budget energy and and telco provider, Amaysim, has post a record 76.8% lift in statutory net revenue to $577.6 million. It follows the shutdown of its online tech store, just a year after launch.

CEO and Managing Director, Peter O’Connell, claims axing Amaysim’s hardware e-store will allow it to focus on core business divisions (e.g. energy).

As previously reported, Amaysim made headlines last year for selling a suite of grey-market smartphones (e.g. from Samsung and Apple) on its online store.

Despite its revenue lift, net profit after tax has dived 76% to $2.7 million, following depreciated technology investments and acquisition funding costs.

CEO and Managing Director, Peter O’Connell, asserts continued strategic investments will “position Amaysim for long-term growth, and enable it to be competitive.”

“This included the broadening of our suite of unlimited mobile products to target the new and growing sub-$20 market and launch of Amaysim Energy”.

Amaysim’s energy arm trades as online pure-play seller ‘Click Energy’, and is said to have contributed ~54% of total revenue.

The news comes as Click Energy, continues to face ACCC action over misleading marketing claims:

“When compared with Click Energy’s standing offer rates, the discounts were much lower than advertised,” ACCC Chair, Rod Sims, said in a statement last month.

Amidst a tough telco landscape – mirrored by massive job cuts at Telstra and Optus – Amaysim affirms it’s “no longer just a telco”, but rather an “asset-light utilities provider focused on customer experience”.

For the twelve months to June 30th, mobile subscribers climbed 8% to 1.16 million.

By contrast, its energy business post 15.9% customer growth to 191,000, with revenue notching $310 million.

Broadband customers soared 196% to 15,000, posting $8.6 million revenue and an underlying EBITDA loss of $6.3 million.

Alongside its earnings result, Amaysim has announced CFO, Leanne Wolski, will leave the company late October, after almost eight years.

As previously reported, former CEO, Julian Ogrin, left the company earlier this year, giving the reins to Co-Founder Mr O’Connell. Mr Ogrin has been appointed a senior strategic role at the newly merged Foxtel, Fox Sports entity.

Concerning future outlook, Amaysim expects strong mobile competition to continue, whilst remaining “confident about the sector over the medium to long-term.”

“We continue to achieve strong mobile subscriber growth in July 2018 and expect the roll out of 4.5G and 5G networks in Australia over FY19 and FY20 to provide increased rationality and a slowing of competitive excess.”

Following its full-year results, Amaysim has decided to hold back dividends:

“The board holds the view that it is in the interests of shareholders for the company to retain a greater proportion of profits in the business and has made the decision not to declare a dividend for the 2018 financial year.”

 

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