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Amaysim Australia shares entered a trading halt immediately after the company announced its half-year results for the period ended 31 December 2018. The telecommunication company, amaysim, requested a voluntary trading halt in its securities due to the pending capital raising announcement.
In todayâs market release to the Australian Securities Exchange, amaysim Australia Limited (ASX:AYS) told that it intends to raise capital via an entitlement offer. The proposed capital raising is reported to enable and accelerate the execution of strategic growth initiatives in its mobile and energy business and to refinance its existing debt facilities which are due on 31 March 2020.
Letâs take a look at half-year performance of the Group:
The Groupâs 1HFY19 EBITDA from continuing operations increased 69% to $27,206k on the back of strong performance of energy segment along with its greater share in revenue, i.e., 59% as compared to 55% in 1HFY18. The underlying EBITDA was up 32%, underlying NPAT up 12% and underlying NPATA also grew by 32% to $14,881k in the half year ended 31st December 2018.
However, energy division growth was offset by a softer half for mobile, which continues to be under pressure from intense competition in the run-up to a generational technology change to 5G. Mobile underlying EBITDA decreased by $2,203k and Energy underlying EBITDA increased by $4,578k, reflecting tightened Mobile revenue but offset by an improved margin performance across the Group and disciplined cost management.
On the statutory front, amaysim reported 1HFY19 net revenue of $263,046k, down 6%, and NPAT of ($4,805k), representing as massive as 289% decline on the previous corresponding period. The downward shift in the companyâs performance is mainly driven by the change in accounting policies, adoption of new standards, and an impairment charge related to Energy customer contracts and distributor relationships.
The Group did not recognize or declared any dividend for the half-year ended 31 December 2018. Further, the statutory EPS declined by 292% to -2.3 cents per share compared to 1.2 cents per share reported in 1HFY18.
During the period ended 31 December 2018, the Group decided to cease the sale of devices and broadband as both being capital intensive businesses were expected to deliver low returns in the foreseeable future. The Group stated that both the businesses were discontinued to focus on its core mobile and energy businesses which are expected to continue delivering growth in a highly competitive market.
Outlook:
amaysimâs Chief Executive Officer and Managing Director, Mr Peter OâConnell, stated: âDuring the half, the Group continued to develop a new disruptive amaysim energy product which it plans to launch in the second half of the 2019 financial year.â
Following the implementation of new Accounting Standard changes, the company expects its FY19 Underlying EBITDA to be in the range of $44,000k - $48,000k. The report further read that This Guidance reflects the Companyâs expectations of ongoing weaker comparative performance in mobile due to the intense competitive environment, softer performance in energy in 2HY19 as margin transitions down to more sustainable long term levels, and the impact of an investment of approximately $8,000k - $10,000k in new strategic growth initiatives.
AYS last traded at $0.945 at a market capitalisation of $210.79 million. Further, as per the ASX announcement, the trading halt is expected to remain in place until the earlier of 26 February 2019 or the release of the pending announcement as stated above.
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