The business is investing in long-term growth, which does cost short-term profit. In the last year Amaysim have launched two new businesses/services (Energy and Broadband) both of which are growing strongly and complementary to existing businesses. Additionally, we’ve launched the device store. Not bad for 1-year’s progress.
As for mobile, it is competitive, but Amaysim + Vaya have some of the best offerings, especially unlimited intl calls (what other providers include this?). All telcos will feel the squeeze (probably more than Amaysim).
Most important, as we diversify our services, is subscriber growth which is doing very well. Single-digit % declines in revenue from mobile will be offset by double-digit % revenue growth in energy, broadband and other services we may launch.
Lastly, as a user of Amaysim and previously other telcos, Amaysim’s customer service is much better IMO/experience.
Amaysim’s strategy is spot-on. Some growing pains which present a great opportunity.
AYS Price at posting:
$1.75 Sentiment: Buy Disclosure: Held
