Amaysim Shares Crash 13% Mobile Revenue Down 7%
Weeks after we exposed a new Amaysim web site that was set up to sell grey imported smartphone the communication Company has seen their shares tank in recent trading.
One of the worst performers on the ASX Amaysim Australia Ltd (ASX: AYS) share price crashed today, 13% to $1.94, wiping out all its 2018 gains.
According to the Companies latest financials the carrier had revenues of approximately $292 million to $294 million and underlying earnings before interest, tax, depreciation, and amortisation.
The Company who has moved to sell branded phones from the likes of Samsung, Apple, HTC And Alcatel that are sourced from questionable suppliers in Asia, Vs the local distribution channel for these brands has reported an increase of 10 percent year-on-year in its mobile subscriber base in the in the first half of the 2018 financial year.
The amaysim Group’s mobile subscriber base grew by 10 percent, at a low churn rate of 2 percent, to close at 1.127 million as at 31 December 2017. Despite this subscriber growth, mobile net revenue (excluding devices) decreased by 7 percent due to a reduction in mobile ARPU, the company said. ARPU was primarily impacted by the broadening of the mobile portfolio.
The broadband business reached 13,000 subscribers at 31 December 2017. The energy business experienced reached 185,000 subscribers at end-2017 (up 18 percent since the acquisition of Click on 1 May 2017).
Motley Fool claims that it is worth noting that this does not include a $6 million receivable relating to the first-half which will be reported as a subsequent event in its accounts. Including this would mean underlying EBITDA of approximately $23 million to $24 million
This compares to revenue of $136.6 million and EBITDA of $17.3 million it achieved in the first-half of FY 2017.
Whilst this is a solid increase of approximately 114% and 36%, respectively, on the prior corresponding period, it still fell short of the market’s expectations.
Yesterday Goldman Sachs advised that it expected Amaysim to deliver revenue of $298 million and EBITDA of $28 million. Representing growth of 118% and 62% on the prior corresponding period.