One of the worst performers on the local share market on Thursday has been the Amaysim Australia Ltd (ASX: AYS) share price.
At the time of writing the growing telco company's shares are down 13% to $1.94, wiping out all of its 2018 gains.
What happened?
This morning Amaysim put out a trading update ahead of its half-year results release on February 26.
According to the release, the company expects to report first-half statutory net revenue of approximately $292 million to $294 million and underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of approximately $17 million to $18 million.
It is worth noting that this does not include a $6 million receivable relating to the first-half which will be reported as a subsequent event in its accounts. Including this would mean underlying EBITDA of approximately $23 million to $24 million
This compares to revenue of $136.6 million and EBITDA of $17.3 million it achieved in the first-half of FY 2017.
Whilst this is a solid increase of approximately 114% and 36%, respectively, on the prior corresponding period, it still fell short of the market's expectations.
Yesterday Goldman Sachs advised that it expected Amaysim to deliver revenue of $298 million and EBITDA of $28 million. Representing growth of 118% and 62% on the prior corresponding period.
Should you invest?
Whilst this trading update was a touch underwhelming, I think the share price decline today has been largely overdone and left its shares trading at an attractive price.
In light of this, I would consider snapping up its shares with a long-term view once they have settled down.
Alternatively, investors could snap up Telstra Corporation Ltd (ASX: TLS) shares instead. I believe Telstra is over the worst of its issues now and could be a great option, especially for income investors.
