|
|
|
|
Just Energy Continues To See Loss of Customers Due To Margin Discipline
Just Energy continued its strategy of improving customer margins, which led to higher margins on new customers signed during the quarter ending December 31, 2016, but an overall decline in customers, the company disclosed in reporting earnings
Just Energy was serving 4.227 million Residential Customer Equivalents as of Dec. 31, 2016, versus 4.311 million RCEs as of Sept. 30, 2016, and 4.567 million RCEs a year ago.
The new loss of 84,000 RCEs from Sept. 30, 2016 to Dec. 31, 2016 compares to a net loss of 75,000 RCEs from July 1, 2016 to Sept. 30, 2016, and a net of 134,000 RCEs from March 31, 2016 to June 30, 2016.
Gross customer additions for the quarter ending Dec. 31, 2016 were 210,000, a sequential increase from the 196,000 added in quarter ending June 30, 2016, but down from the 313,000 customers added in the year-ago quarter
Gross mass market customer additions of 101,000 decreased 17% from the 122,000 added in the prior comparable quarter, primarily due to market conditions as commodity prices were lower and, therefore, more competitive across all markets, as well as a decrease in customer additions through door-to-door marketing, the company said
Gross commercial customer additions of 109,000 decreased 43% from the 191,000 gross customer additions in the prior comparable year, primarily due to competitiveness in pricing and Just Energy's previously reported more disciplined pricing strategy.
For the quarter, mass market attrition rates declined three percentage points to 24% compared to the prior year.
Just Energy increased margins on new customers while also removing lower margin customers from the books
During the quarter, Just Energy added or renewed 205,000 mass market RCEs at an average annual gross margin of $222/RCE, versus an average annual gross margin of $199/RCE on mass market customers lost during the quarter
Higher new customer margins reflect strong margins on new products, including bundled offerings, the company said
Quarterly gross margin of $174.4 million (all $ Canadian) decreased 3% year over year. The decrease of $5.6 million is attributable to a $3.6 million decrease from the impact of foreign currency on U.K.-based customers as well as a result of 7% decrease in customer base.
Quarterly Base EBITDA of $51.5 million represented a decrease of 8% year over year primarily as a result of increased prepaid commission expenses and the impact of foreign currency translation. Base EBITDA remains up 7% year to date.
ADVERTISEMENT Copyright 2010-16 Energy Choice Matters. If you wish to share this story, please
email or post the website link; unauthorized copying, retransmission, or republication
prohibited.
February 7, 2017
Email This Story
Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Manager of Regulatory Affairs -- Retail Supplier
• NEW! -- Channel Manager, Sales -- Retail Supplier
• NEW! -- Senior Analyst -- Retail Energy -- Houston
• NEW! -- Manager of Billing Operations
• NEW! -- Implementation Manager
-- Retail Energy -- Houston
• NEW! -- Marketing Associate -- Retail Supplier -- Houston
• NEW! -- Directors: Telemarketing or Broker Channel Management - Retail Electric Supplier -- Houston
• NEW! -- Analysts, Sales and Marketing - Retail Electric Supplier -- Houston
• NEW! -- Market Director -- Retail Energy
• NEW! -- Energy Business Development Professional
• NEW! -- Managers, Sales and Marketing - Retail Electric Supplier -- Houston
• NEW! -- Sales Associate -- Retail Energy
|
|
|