Amaysim shares have fallen as much as 12 per cent after the junior mobile group delivered a mixed trading update amid fierce industry competition.
The company has warned that full-year mobile revenue per user (ARPU) - a key performance measure for the telecom industry - is expected to be down from last financial year's $25.24. And, that was down 3.4 per cent from $26.12 in fiscal 2015.
Amaysim said the ARPU fall is consistent with industry trends and takes into account the full-year impact of its budget brand Vaya's lower ARPU subscriber base.
In its update, the company said the pressure on ARPU is expected to ease in the first half of 2016/17 and "gradually" increase in the second half.
Amaysim also said it expects to add about 58,000 to 60,000 new mobile customers in the fiscal first half to December 31, which is forecast to drive low-double digit annual revenue growth.
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The group's customer growth forecast is ahead of Macquarie Securities' estimate of 38,000, but its revenue growth estimate is well below the investment bank's 22.7 per cent expectation.
Amaysim also forecast its annual underlying mobile operating expenses would be around $50 million, flat compared with last year.
At 1304 AEDT, Amaysim shares were down 18 cents, or 8.29 per cent, at $1.99 after falling as much as 12 per cent to a three-month low of $1.91 in late morning trade.
Amaysim's update comes a day after Australia's fourth biggest telecom group Vocus Communications disappointed investors with its grim annual earnings guidance.
Vocus shares plunged 25 per cent on Tuesday after the telco issued a worse-than-expected earnings contribution figure from its most recent acquisition, Nextgen, and soft broadband customer growth data amid stiff industry competition.
Amaysim chief executive Julian Ogrin said the group had started the new financial year in line with management's expectations with continued organic customer growth and low churn.
The group - which passed the one million customer mark earlier in November - expects to launch its broadband offering early in 2017 following some testing, Mr Ogrin.
