Amaysim Wobbles After Opening Grey Imported Smartphone Store Share Slump

Amaysim the phone market that moved to selling grey imported phones that brands such as Samsung Apple and Alcatel said that they would not support in Australia has reported a first-half net loss of $2.37 million, down from an $8.3m profit a year earlier, after acquisition and new product costs hit its bottom line.

At 12 noon (AEDT), shares in Amaysim had fallen 7.5 cents, or 4.92 per cent, to $1.45.

The telecommunications and retail energy provider’s (AYS) revenue for the six months to December 31 more than doubled to $294m on the back of subscriber growth in its mobile and broadband businesses and the contribution of the Click energy business acquired in May.

According to their half year report the store which ranges several phone brands sourced in Asia is averaging 33,000 visitors a week however the Company has not identified revenues for the store or which brands are selling.

Huawei the Chinese Company that is struggling to get traction with carriers and mass CE retailers has recently struck a deal for Amaysim to sell their Australian approved handsets.

The board has decided not to pay an interim dividend after the unfranked 4.0 cents per share delivered in the prior first-half, saying instead the company would invest capital in the growth of the company, including reserving funds for any new acquisitions.

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David Richards

David Richards has been writing about technology for more than 30 years. A former Fleet Street journalist, he wrote the Award Winning Series on the Federated Ships Painters + Dockers Union for the Bulletin that led to a Royal Commission. He is also a Logie Winner for Outstanding Contribution To TV Journalism with a story called The Werribee Affair. In 1997, he built the largest Australian technology media company and prior to that the third largest PR company that became the foundation company for Ogilvy PR. Today he writes about technology and the impact on both business and consumers.