Home > Communication > Amaysim Stock Sinks On $7.4M Loss

Amaysim Stock Sinks On $7.4M Loss

Australia’s largest mobile virtual network operator Amaysim lost $7.4 million last financial year thanks to increased competition and the acquisition of Click Energy.

Amaysim paid $120 million for the online power retailer back in 2017, but a non-cash impairment charge of $15.7 million relating to the retailer’s assets were responsible for bringing profits down more than 150% this year.

Total statutory net revenue of $508.3 million produced an EBITDA of $47.3 million.

Shares in Amaysim were down more than 15 per cent late in the trading day at 56 cents.

A “highly competitive environment” is being blamed for average revenue per user dropping 13.7 per cent to $25.30, but Amaysim’s new retailer supply agreement with carrier Optus has allowed the MVNO to offer new, more competitive plans as it seeks to attract recurring subscribers rather than pay-as-you-go customers.

More than 8,000 subscribers have signed up for one of Amaysim’s new plans since they went live in June.

The company is clawing its way back after a 4.8 per cent drop in subscriber numbers and now has more than 632,000 recurring mobile subscribers.

Telsyte reported earlier this year that Amaysim holds more than a third of the MVNO market.

You may also like
Mobile Network Investment Focused on 5G in Major Cities
Oppo Users First In Australia To Trial Optus 5G Standalone
Optus Rolling Out Fixed Wireless 5G Max
Major Stock Problems Hurting CE Retailers Shares Fall
Talent Shortage Forces Telstra, Optus To Pay Workers More