- Rent.com.au (RNT) has posted some strong results in its June quarterly report, despite COVID-19 disruptions
- Year on year the company's earnings increased by 60 per cent in the fourth quarter (4Q), however, RNT is still in the red
- The rental company was cash-flow positive for the June quarter, however, they're operating balance sheet is still in negative territory
- Rent.com.au ended 4Q with $633,000 in the bank
- Shares in RNT are up 21.9 per cent, selling for 3.9 cents each
Rent.com.au (RNT) has posted some strong results in its June quarterly report, despite COVID-19 disruptions to the housing market.
Revenue increased by 7 per cent year-on-year (YOY), despite the challenges posed by the coronavirus lockdowns in late March and April.
The rental company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 60 per cent YOY in Q4. Despite the result being the company's best on record, RNT is still in the red for EBITDA.
“The June quarter has been impacted by the economic disruption and uncertainty caused by the measures taken to combat COVID-19. Despite this, we managed to achieve 7 per cent YOY revenue growth," CEO Greg Bader said.
"The result is much better than we had initially anticipated and largely due to improvements in product sales in the latter half of the quarter," he added.
Rent.com.au's revenue was slightly down in Q4, compared to the March quarter, falling from $636,000 to $618,000.
The company's CEO said the difference could be explained by April's monthly earnings, which dragged down the rest of the quarter.
“April was particularly heavily impacted, as this was the peak of the lockdown period and the number of renters looking for properties greatly reduced," explained Greg.
Meantime, in a positive sign for investors, Rent.com.au was cash-flow positive for the June quarter, with $153,000 operating balance.
However, when you examine the yearly operating amount, the company is still in negative territory, with a loss of $472,000.
RNT ended the June quarter with $633,000 in the bank. This is down on Q3, where the company ended the quarter with $725,000 in the bank.
But, shareholders seem pleased with today's better than expected results, with shares in RNT shooting up from a closing price of 3.2 cents each yesterday to 4 cents per share at its peak today.
At the close of market today, July 30, the company's shares were up 21.9 per cent trading for 3.9 cents each.