Amaysim Australia Limited (ASX: AYS) has lately got into an asset sale deal under which it sold its fixed line broadband customer business to Southern Phone Company Limited. The transaction was subject to number of conditions. Approximately $3 million was supposed to be paid in two tranches; and the company has now completed this strategic sale of the broadband customer business. The exit will simplify the operating structure, and the group can now invest in its technology platforms and energy businesses. In August 2018, Company reviewed the broadband business and current sale of broadband customer base was well in line with its goal. The decision to exit broadband followed the company’s review of its broadband business and is in line with its goal to maximize shareholder returns.
In terms of financial performance, statutory net revenue of AYS increased by 77% to $577.6m in FY18 from $253.5 m in FY16, with mobile business contributing 45% of the revenue, Energy Business contributing 54% of the revenue and remaining 1% coming from the broadband business. Energy is now the significant proportion of the business and the group posted strong performance growth with statutory net revenue of $310 million from the energy business and underlying EBITDA of $22.9 million. Despite challenging conditions and immense competition in the sector energy, subscribers’ base posted the growth of approximately 15.9% up to 1,91,000 as on June 20, 2018. Statutory EBITDA was up by 11% to $37.6 million against $33.8 million noted in the previous year. Underlying EBITDA recorded 11% rise to $47.8 million compared with $43.5 million in the previous year. Energy subscribers posted strong growth of 15.9% up to 26k accounts in FY18, With solid growth of Amaysim energy under mobile subscribers and new subscribers, subscribers grew by 7.9% up to 1.158 million under mobile product portfolio at 30 June 2018. AYS launched Amaysim energy in October 2017.
The company holds strong focus for the financial year FY-19 by focusing on key areas:
- Focus on growing the mobile business
- Retail energy disruption and focus to grow amaysim energy and Click’s existing channel
- Exit from broadband
- Discontinuing Device
The company has recently provided its launched updates on $30/$40/$50 unlimited mobile plans. The company now offers 40 GB of data and this is by far the company’s best valued unlimited talk and text mobile plan. Company is focused to give customers best services at effective prices and is maintaining strong customer satisfaction from the effective services and plans. Execution of multiple campaigns took place all through the year, resulting in a progressive increase in the cross-sell activity.
Amaysim is exploring an opportunity to disrupt energy with a launch of new customer centric energy product in 2H19, The company aims to build a model which will be simple and transparent and closely aligned to the existing model and values. AYS traded at the lower levels of $ 1.08 (down 1.8%) after its announcement to exit from the broadband business.
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