You are using an older browser version. Please use a supported version for the best MSN experience.

Expanding Amaysim plans fixed broadband

AAP logoAAP 18/08/2016 Lilly Vitorovich

Amaysim chief executive Julian Ogrin is upbeat about the junior mobile operator's outlook as it continues to attract more customers and plans to enter the fixed broadband market before Christmas to boost earnings.

The company's annual underlying earnings more than doubled to $35.4 million for the year ended June 30, driven by a 34.5 per cent jump in customers to 966,000, with the strong momentum continuing.

Amaysim added another 19,000 customers over the seven weeks to August 18, an implied rate of 2,700 a week that is well ahead of Goldman Sachs' expectations of 1,600 a week.

Mr Ogrin told AAP that the strong mobile subscriber growth gave the company "some pretty strong tailwinds", while churn rate - the number of customers leaving the group - fell to 2.5 per cent in 2015/16 from 3.5 per cent a year earlier.

Amaysim said in its results statement that it is "well positioned for further growth" in 2016/17, and a key focus is to diversify via the the National Broadband Network. No specific earnings forecasts were provided.

Amaysim shares jumped 28 cents, or 15.6 per, to $2.07 on the back of the results and outlook, in a slightly higher Australian market.

Goldman Sachs said the group's results beat its expectations, and had made a solid start to the current financial year.

Mr Ogrin said he expects the group to wrap up its acquisition of Australian Broadband Services next week and the launch of the fixed broadband offering is expected before the end of November or by Christmas at the latest.

"First and foremost, we want to transfer that online experience philosophy that we've been successful with in mobile and bring that into fixed broadband," Mr Ogrin said on Friday.

"Its all about getting it right up front, and than we'll go into market."

The key to fixed broadband was the first seven to 10 days of a customer getting their service, Mr Ogrin said.

"That's the scary part for all Australian consumers," he said.

Mr Ogrin declined to provide details for the fixed broadband offering, which will take on market heavyweights Telstra, Optus and TPG Telecom.

Amaysim's statutory net profit for 2015/16 dropped 48.7 per cent to $12.3 million, hurt by higher tax expenses for listing on the ASX and the acquisition of virtual mobile network operator Vaya.

AMAYSIM FY16 RESULTS

*Net profit down 48.7pct to $12.3m

*Revenue up 19.3pct to $254m

*Final dividend of 5.3 cents, taking full year dividend to 8.3 cents

image beaconimage beaconimage beacon