Amaysim Australia Ltd (ASX: AYS) shares have jumped 3.81% higher to $1.09 early on Monday.
The online mobile-services provider announced its full-year results, reporting revenue had increased by 76.8% to $577.6 million.
Net profit after tax came in at $12.3 million, a decrease of 42%. Amaysim attributed this to increased depreciation of technology investment and financing costs related to acquisition funding.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $47.8 million was up 9.8%.
The company has not declared a dividend for the period.
Chief Executive Officer and Managing Director Peter O’Connell said: “I’m pleased to be
delivering shareholders a solid result that has been achieved in a highly competitive environment and one that reinforces that amaysim is no longer just a telco – we are an asset-light utilities provider focused on customer experience.”
Mr O’Connell continued: “Our diversification into energy has enabled amaysim to deliver growth despite a challenging mobile market. The early success of amaysim energy reinforces our belief that our cross-sell offering will differentiate the company in a crowded telco market.”
The energy business delivered revenue of $310 million and earnings of $22.9 million despite increased competition in the sector. Energy subscribers grew by 15.9% to 191,000 as at 30 June 2018.
“At around 54% of statutory net revenue, energy has, for the first time, contributed the majority of the Groups’ revenue. The greater proportion of revenue from energy has provided growth and resilience in our business,” said Mr O’Connell.
Amaysim has flagged continued earnings growth in FY19 from its energy business and cost-cutting.
Since the beginning of 2018, the Amaysim Australia Ltd share price has fallen 47.24%, compared to the S&P/ASX 200 Index which has gained 3% in the period.