Rent.com.au Limited (ASX:RNT) is a purpose-led company seeking to empower home renters through their rental profile, rental bond and payments and through a growing number of aligned transactional services. The company has announced Q1FY22 revenues of $0.843m, an increase of 12.0% on the previous corresponding period (pcp) and up 4% on Q4FY21. The core Rent.com.au delivered positive EBITDA of $0.076m, substantially up on pcp and 29% ahead of Q4FY21. The core Rent.com.au business has now had five consecutive quarters of growth. Including RentPay, the group EBITDA loss was $0.405m, which was higher than the $0.214m loss reported in Q4FY21 due to an increased investment in marketing and people for the RentPay start-up. The platform now has 1,350 active customers transacting payments out of a core universe of 5,500 registered customers and 9,700 app downloads. The company noted that with major lockdowns ending and the likelihood of increased intrastate and possibly international mobility, the traditionally strong third quarter promises to be extremely busy. We have increased our cost forecasts for RentPay and pushed out takeup into H2 FY22 and FY23, resulting in adjustments to our near term forecasts. Our valuation is now $0.31/share (previously $0.35/share) which anticipates RentPay has 5% of renters by FY23.
28 Oct 2021
Building core profitability while investing for growth
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Building core profitability while investing for growth
Rent.com.au Ltd (RNT:ASX) | 0 0 0.0% | Mkt Cap: 14.0m
- Published:
28 Oct 2021 -
Author:
Finola Burke -
Pages:
7
Rent.com.au Limited (ASX:RNT) is a purpose-led company seeking to empower home renters through their rental profile, rental bond and payments and through a growing number of aligned transactional services. The company has announced Q1FY22 revenues of $0.843m, an increase of 12.0% on the previous corresponding period (pcp) and up 4% on Q4FY21. The core Rent.com.au delivered positive EBITDA of $0.076m, substantially up on pcp and 29% ahead of Q4FY21. The core Rent.com.au business has now had five consecutive quarters of growth. Including RentPay, the group EBITDA loss was $0.405m, which was higher than the $0.214m loss reported in Q4FY21 due to an increased investment in marketing and people for the RentPay start-up. The platform now has 1,350 active customers transacting payments out of a core universe of 5,500 registered customers and 9,700 app downloads. The company noted that with major lockdowns ending and the likelihood of increased intrastate and possibly international mobility, the traditionally strong third quarter promises to be extremely busy. We have increased our cost forecasts for RentPay and pushed out takeup into H2 FY22 and FY23, resulting in adjustments to our near term forecasts. Our valuation is now $0.31/share (previously $0.35/share) which anticipates RentPay has 5% of renters by FY23.