rent.com.au (ASX:RNT) released their half-year results this week, showing improved revenue for 2018 was $1.05 million with a net EBITDA loss of $1.3 million, a 21.5 per cent improvement on losses reported in the previous financial year.
The Group say they have continued to realise a savings benefit from ongoing search engine optimisation and other work done in previous periods to grow organic traffic to the site and app.
- With sales and marketing expenses 21% lower than the prior comparable period
- Labour costs were also lower (25%) than the prior comparable period despite the Group adding additional advertising sales and web development resources during the period
- No other significant changes during the six month period.
The statement issued to the ASX notes that after narrowly missing the target of achieving breakeven in June 2019, the Group conducted a comprehensive review which “validated their long term strategic goals.”. The statement also notes that net assets of the Group have decreased from $5,217,209 at 30 June 2016 to $3,592,578 at 30 June 2017. It also states that Cash reserves decreased from $6,080,209 at 30 June 2016 to $3,254,380 at 30 June 2017.
During the half-year the Group launched its first renter app on Apple and Android platforms. The app featured lifestyle-based search features and traditional suburb-based functionality. rent.com.au stated that almost half of all new renters were created via the app, with an increase of 30% in usage since the introduction of the app in August 2018.
The share price closed on Friday at 0.037, 61% down on a 12 months high of 9.7c per share.