Investors have dropped out of Amaysim, with the SIM-only phone company's share price plunging by more than a third after it rang up a disappointing half year result, its first as a listed company.
Net profit dropped 96 per cent to $681,000 as costs from listing on the share market in 2015 and the acquisition of pre-paid rival Vaya cut into its bottom line.
Amaysim shares lost 91 cents, or 37 per cent, to $1.55, the first time they have fallen below their IPO price of $1.80.
Despite the weaker net profit, earnings and revenue grew over the first half.
More customers helped nearly triple underlying earnings to $12.6 million while revenue rose 18 per cent to $117.3 million.
Amaysim offers SIM-only phone and data plans on the Optus network, requiring customers to bring their own handsets and tablets.
It debuted on the Australian share market in July.
It currently has 764,000 customers and predicts that number to grow to nearly a million as consumers increasingly shun 24-month lock-in contracts for BYO-phone plans.
More than 65 per cent of all smartphones in 2015 were purchased outside of a contract, compared to 40 per cent in 2014, Amaysim said.
Customers are also hungry for data, with the company recording a boost to customer signups after it revised its suite of phone plans to revolve around data allowances.
Traditional carriers have begun adding extra data to their plans.
Amaysim says this increased competition has placed pressure on revenue and earnings, but has reaffirmed its full year earnings target of $31.7 million.
Its acquisition of discount pre-paid player Vaya in January, which has 140,000 customers, broadens the range of its offerings to include cheaper deals. The full benefit from Vaya is expected to show in its 2017 earnings.
AMAYSIM RESULTS NOT SO AMAZING
* Net profit down 96 pct to $681,000
* Revenue up 17.9 per cent to $117.2m
* Inaugural interim dividend of three cents, unfranked
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