Budget mobile provider Amaysim has delivered strong first-half earnings growth, underpinned by 59,000 new customers and tight cost control.
First-half underlying earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 38 per cent to $17.3 million.
Revenue rose 16.5 per cent to $136.6 million, also bolstered by the acquisition of virtual mobile network operator Vaya, which had 140,000 customers when it was bought in January 2016.
Amaysim boasted 1.03 million mobile customers at the end of December, up from 764,000 some 12 months earlier.
Average revenue per user (APRU) – a key performance measure for the telecom industry – dropped 15 per cent to $22.37 as the group “consciously repositioned”, chief executive Julian Ogrin said.
The churn rate – the number of customers leaving the group – fell to two per cent in the first half, compared to three per cent a year earlier.
The company expects full-year underlying EBITDA of between $40 million and $42 million.
Amaysim expects to enter the broadband market, which is dominated by Telstra, TPG Telecom and Optus, in May or June following its acquisition of Australian Broadband Services last year, Mr Ogrin told AAP.
Initially, the group will focus on its mobile subscribers, or 600,000-plus households that have access to the national broadband network, Mr Ogrin said.
“We are excited about the opportunity in front of us to leverage our loyal subscriber base and our technology platform with our entry into broadband,” he said.
The national broadband network will be half complete by the middle of 2017.
Underlying operating costs were steady at $23.2 million in the first-half to December 31 on the back of lower marketing and acquisition expenses.
First-half net profit surged to $8.3 million from $681,000 a year earlier, which was hurt by IPO costs of $8.3 million.
Amaysim shares closed down six cents at $1.795.
AMAYSIM FIRST-HALF NET PROFIT SURGES
* Net profit $8.3m vs $681,000 in pcp
* Revenue up 16.5pct to $136.6m
* Interim dividend up one cent to four cents, unfranked