Amaysim sees mobile EBITDA more than halve for 2020 first half
Amaysim has reported a slim first half which saw underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) fall by 59% on a comparable basis from last year.
With its new accounting standards, Amaysim reported EBITDA of AU$5.3 million, compared to AU$10.6 million a year prior, but with the same accounting standards, EBITDA would have been AU$4.4 million. At the same time, mobile revenue was down 15% to AU$91.8 million, which the company said was due to competitive pressure and an increase in data inclusions on plans.
"Excess data revenue is now a much smaller component of total mobile revenue meaning that Amaysim is poised to see future revenue growth as it transitions past this revenue and ARPU (average revenue per user) headwind," the company said.
On the plus side, the company grew its recurring mobile customer base to 706,000 with its Jeenee mobile acquisition contributing 41,000 extra accounts, and now claims 1.05 million mobile customers.
However, ARPU dropped from AU$26.42 each month to AU$22.34, with Amaysim adding it costs an average of AU$51 on marketing to gain a customers, and at gross profit of AU$6.14 each month, it takes 8 months for a return on marketing investment to occur.
The company added that its recurring revenue was increasing in the quarter to December 31, and the business has started seeing "month-on-month revenue growth".
The reading was not much better overall for the company, which reported revenue was down 7% to AU$244 million and EBITDA fell 14% to AU$23.5 million, while net profit reported a rare bright spot and hit positive territory at AU$3.7 million, an increase of 178%.
"Our 1H20 result reflects continued progress against our strategy to be Australia's leading subscription utilities provider, with our mobile business performing strongly and solid results from our energy business," Amaysim CEO and managing director Peter O'Connell said.
"Our plans in market are the most competitive they have ever been, enabled by our revitalised network supply agreement with Optus, signed in May 2019."
For the full year, the company is expecting EBITDA in the range of AU$33 million to AU$39 million.
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