By Claire Reilly
Thorn Group, the parent company of Radio Rentals and Rentlo, released its half-yearly results today, posting a 30 per cent increase in net profit after tax (NPAT) up to $14.3 million. Revenue also grew in the half-year ended 30 September, up 20 per cent to $96 million, while earnings per share increased 19 per cent.
Speaking about the results, Thorn Group managing director John Hughes said the success of the company’s core rental businesses was a key factor in the strong profits.
“The continued strong performance of the consumer rental business is a real positive, particularly when compared to industry trends and certainly reinforces the strength of this business, predominantly through its long-term recurring revenue streams and customer loyalty,” he said.
“This result is a testament to the Company’s ability to perform well under both positive and challenging market conditions and demonstrates the strength of its long-term recurring revenue streams.”
According to the profit report, flat panel TVs and whitegoods saw solid volume growth, while the Rent, Try $1 Buy program being offered by Rentlo and Radio Rentals was a “major factor in attracting and retaining customers by combining the benefits of rental with the potential to gain ownership of a product”.
“This flexibility is an important consideration for customers, particularly if they are concerned about their financial circumstances."
This article first appeared on Current.com.au