This morning Amaysim Australia Ltd (ASX: AYS) reported its half-year results for the period ending December 31 2018. Below is a summary of the results with comparisons to the prior corresponding half year.
- Statutory net loss of $13.7m
- Net loss after tax from continuing operations of $4.8m, down 289%
- "Underlying profit" from continuing operations of $7.6m, up 12%
- Revenue of $263.2m, down 2%
- Underlying EBITDA of $29.2m, up 32%
- Net debt of $59.4m, down $20.4m from 30 June 2018
- FY19 underlying EBITDA expected to be in range of $44m to $48m (under previous accounting standards range would be $33m – $37m)
- Plans to raise $50.6m at 1 share for every 2.5 shares held at 60 cents per share
The business blamed the result on competitive mobile markets with underlying mobile revenue for the half down to $108 million compared to $125.7 million in the prior corresponding half, with EBITDA (operating income) down 4.6% to $10.6 million.
The group did report that its energy business is growing well with underlying EBITDA up 69.2% to $18.7 million on revenue of $155.1 million.
It bought its energy business Click Energy in mid 2017 for $120 million via a mixture of scrip issued worth around $40 million and $80 million of bank debt with the Commonwealth Bank of Australia (ASX: CBA).
However, it seems that after the debt-fuelled acquisition party shareholders are facing the sobering reality of picking up the bill with the company seeking to raise $50.6 million on a dilutory 1 for 2.5 shares held basis at just 60 cents per share/
Amaysim shares last changed hands more than 50% above that 60 cents price at 94.5 cents per share.
Moreover, since the acquisition the former CEO has sold shares and left the company on July 1 2018, with the CFO departing a couple of months later.
Based on the above you can probably tell I'm not a buyer of Amaysim shares, as its mobile business is in a competitive space and it's about to raise capital at a huge discount to its last exchange traded price.
