The trading halt that has been effective on Amaysim Australia Ltd (ASX: AYS) shares since 22nd February will today be lifted with Amaysim’s half-year report and the announcement of a capital raise.
Founded in 2010, Amaysim is an Australian provider of mobile and energy plans, offering SIM or data-only plans, as well as electricity and gas plans.
Here Are the Five Key Points
- Net revenue fell 5.6% to $263 million
- Underlying EBITDA was up 32.2% to $29.2 million (video: What the heck is EBITDA?).
- Net loss after tax from continuing operations was $4.8 million
- Net debt was reduced by $20.4 million and now totals $59.4 million
- $50.6 million capital raise was announced through an entitlement offer
A Not-So Amaysim Entitlement Offer
Amaysim announced that the capital raise will take place through an entitlement offer, with all existing shareholders eligible to purchase additional shares at a price of 60 cents per share in this 1 for 2.5 offer.
Management Commentary
Commenting on the need for the capital raise, Chief Executive Officer and Managing Director Peter O’Connell said: “We are raising new capital to support investments that will enable us to accelerate the execution of our longer term strategy. We believe there is a clear opportunity for amaysim to be the customer champion in energy in the same way we are in mobile”.
The increase in EBITDA was entirely led by the energy sector and mobile was weighing on the balance sheet for the half.
However, Mr O’Connell noted, “Despite the current headwinds in mobile and some short-term regulatory uncertainty for energy, the management team and Board are optimistic about the sectors over the long-term. We believe that our bold approach announced today, will enable us to take advantage of a number of growth opportunities arising over the next 3-years”.
Outlook
Looking ahead, FY19 underlying EBITDA is expected to be in the range of $44-$48 million due to changes and implementation of new Accounting Standard changes. Under previous Accounting Standards, the equivalent range would have been $33-$37 million.
If you’re considering investing in Amaysim, you might also want to look at Telstra Corporation Ltd (ASX: TLS) as a more established option. This Rask Media article explores Telstra’s dividend and whether it’s all it’s cracked up to be.
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Disclaimer: At the time of writing, Max does not own shares in any of the companies mentioned.
