Rent.com.au has released its 2020/2021 financial report, revealing another year of significant growth, despite posting a net operating loss after tax of $1.294 million.
The net operating loss after tax for the year prior was $1.665 million.
Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) experienced a 39 per cent improvement, with a loss of $689,055, compared with a $1.134 loss the previous financial year.
Overall revenue increased by 26 per cent, with both of its key revenue streams experiencing strong growth.
Key figures:
- Net operating loss after tax – $1,294,013
- Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) – $689,055
- EBITDA improvement of 39 per cent
- Overall revenue – $3,094,402
- Revenue growth – 26 per cent
- Renter product revenue – $1,522,237
- Renter product growth – 40 per cent
- Advertising and sales revenue – $1,263,450
- Advertising and sales growth – 28 per cent
The 2020/2021 financial report revealed the group’s original rent.com.au business – that is, the group’s results less any impact from its new RentPay platform – achieved its goal of EBITDA profitability off the back of strong revenue growth, earning a profit of $117,468 for the 20/21 financial year.
The RentPay business, pre-released in May, incurred an EBITDA loss of $806,524, according to the report, because resources were allocated to building the new rental payments system.
“Our vision is to reimagine the renting experience to create Australia’s most empowered rental community and RentPay is a significant milestone towards that goal,” Rent.com.au Chief Executive Officer Greg Bader told Elite Agent at the time of the platform’s beta-release.
The development of the much-anticipated platform, which is the group’s first product aimed at renters during their tenancy, incurred labour costs of $1,230,862 as well as external costs of $440,697.
“Operationally, the group’s renter app on the Apple and Android platforms continues to achieve higher customer ratings than other leading real estate sector apps,” the report said.
While all three existing renter products grew, the RentConnect utility connection service offered under an exclusive arrangement with AGL, experienced the strongest growth.
“The group’s research indicates that this now accounts for greater than 10 per cent of AGL’s net new utility service connections nationally,” the report said.
Advertising and sales grew strongly off the back of the group’s efforts to drive greater repeat business. Over the course of the financial year, more than 50 per cent of rent.com.au’s advertising campaigns ran continuously for six months or longer.
The report also revealed significant growth in the overall financial position of rent.com.au.
“The net assets of the group have increased to $4,910,847 at 30 June 2021 (compared with $1,795,125 at 30 June 2020),” the report said.
“Cash reserves increased to $2,918,306 at 30 June 2021 (compared with $631,771 at 30 June 2020).”
The report also noted some key changes in the group’s state of affairs during the 20/21 financial year.
“On 15 September 2020, the Group announced that it had completed the placement under ASX Listing Rule 7.1 of 33,333,333 new fully paid ordinary shares at an issue price of $0.045 per share, with existing shareholders to raise $1.5 million,” the report said.
“On 5 February 2021, the group issued 55 million new fully paid ordinary shares at an issue price of $0.05 per share to sophisticated, professional and other exempt investors pursuant to section 708 of the Corporations Act 2001 (Cth) to raise $2,750,000 (before costs).
“The funds will be applied toward the upcoming RentPay launch to provide additional working capital for marketing and product development.”
The full rent.com.au 2020/21 Financial Report to shareholders is available here.
