What: The share price of mobile services provider Amaysim Australia Ltd (ASX: AYS) has been smashed this morning with the stock tumbling 30% to $1.72 by midday on Friday after the group reported interim profit results which appear to have shocked investors.
Amaysim operates as a reseller of mobile telecommunication products and competes against Telstra Corporation Ltd (ASX: TLS) and TPG Telecom Ltd (ASX: TPM) amongst many others.
So What: Amaysim only listed on the ASX in July last year so today's results represent the first six-month period as a listed company. The group has provided pro forma results for the prior half for comparison.
On that pro forma basis, revenues grew 18% to $17 million, earnings before interest, tax, depreciation and amortisation (EBITDA) increased 174% to $12.6 million, net profit after tax (but before amortisation of acquired intangibles) leapt 248% to $8 million and underlying earnings per share jumped 229% to 4.6 cents per share.
The balance sheet held net cash at December 31 of $23.9 million.
Amaysim also reported that average revenue per subscriber (ARPU) increased 4.6% to $26.34, the number of subscribers grew 12.5% to 764,000, and the gross margin expanded to 30.4%.
Now What: Amaysim has announced a maiden unfranked interim dividend of 3 cents per share and also reaffirmed its prospectus pro forma forecast for EBITDA of $31.7 million.
With the share price now trading below its initial public offer (IPO) price of $1.80, this could potentially be a good time for investors to take a closer look at this stock.
