Amaysim eyes cross-selling future

Amaysim has racked up one million mobile subscribers for the first time, helping drive the diversifying telco provider’s full-year underlying earnings up more than 20 per cent.

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Amaysim’s underlying earnings for the year to June 30 rose 22.9 per cent to $43.5 million, with the group’s total broadband subscribers rising to about 5,000 and its mobile subscriber base rising 11 per cent.

But net profit fell 6.5 per cent to $11.5 million due to the cost of acquiring online energy retailer Click and further broadband investment through May’s launch Amaysim’s own-branded NBN service.

In August 2016, Amaysim also acquired Australian Broadband Services (AusBBS), adding to its broadband capabilities.

The group plans to incorporate the energy business into its single sign-in platform in FY18 as part of a strategic push to cross-sell.

The Australian energy market is “ripe” for Amaysim’s disruptor approach, chief executive Julian Ogrin said.

“Looking to the future, energy provides us with a terrific opportunity to cross-sell our products to 800,000 households in the group as public awareness of energy costs increases consumers seek better service price and more transparency,” Mr Ogrin said.

The group is now “a more diversified and resilient business” than when it listed on the ASX in July 2015, Mr Ogrin said, with “scope for significant growth.”

The addition of Click – with subscriber growth up 25 per cent at 165,000 – contributed two-month statutory net revenue of $45.7 million.

Mr Ogrin said lower cost customer acquisition helped drive down mobile costs for the year by eight per cent, with the junior telco ‘s average revenue per user (APRU) – a key industry measurement – in line with expectations at $22.46.

The number of exiting customers – the annual churn rate – was also steady at two per cent, with industry surveys recording high customer satisfaction and low complaints.

The company delivered a fully-franked final dividend of 5.1 cents per share, compared to an unfranked 5.3 cents the previous year.

The full-year payout for 2017 was a partially franked 9.1 cents per share.

Amaysim shares closed up 7.5 cents, or 4.5 per cent, at $1.74.

AMAYSIM RESULTS

* Net profit down 6.5pct $11.5m

* Underlying profit up 6.3pct to $121,185.

* Revenue up 29pct to $326.7m

* Final dividend of 5.1 cents, taking the total year to 9.1 cents