Rent.com.au has posted their results for the 2019/20 financial year, notching up a significant improvement on the year prior but still posting a net operating loss after tax of $1.665 million.
- Net operating loss after tax – $1,665,215
- Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) – $1,133,541
- EBITDA improvement of 47 per cent
- Overall revenue – $2,452,239
- Overall growth – 13 per cent
In the 2019/20 financial year rent.com.au achieved growth of 13 per cent compared to the year prior to achieve overall revenue of $2.452 million.
A report to shareholders notes both of its key revenue streams grew in the recent financial year, with renter products up seven per cent to $1.313 million and advertising sales up by 27 per cent.
“During the year the Group continued to balance its goals of achieving profitability in the short term with industry disruption over the longer term,” the report said.
“As rent.com.au achieves better brand awareness amongst renters, more people visit the website and apps from non-paid means allowing the Group to reduce marketing expenditure by 55 per cent in the year ended 30 June 2020 compared with the prior year.
“At the same time overall audience grew 19 per cent, with almost three quarters of visitors coming from non-paid sources.
“The Group’s renter app on the Apple and Android platforms continues to perform well and regularly achieves higher customer ratings than other leading real estate sector apps.”
Meanwhile, rent.com.au’s existing renter products were also enhanced during the year.
The report explains RentCheck now includes an endorsements feature where agents can provide a reference, while a 21-day interest and fee free period for RentBond was introduced “in order to broaden the appeal of the product”, and RentConnect was overhauled, to feature a customer offer under an exclusive arrangement with AGL.
“The Group also continued its development of RentPay, its first product aimed at renters during their tenancy,”the report states.
“$185k of labour costs were incurred in this development during the year and the Novatti Group acquired a 2.5 per cent equity shareholding at a cost of $250,000 in RentPay Technology Pty Ltd which is the subsidiary within the Group which owns the RentPay system.
“This $250,000 will cover the development of RentPay’s core digital wallet functionality and also the first year’s running costs.
“Development is almost complete as at the reporting date and a public launch of RentPay is anticipated during the half year ended 31 December 2020.”
The full rent.com.au 2019/20 Annual Report to shareholders is available here.