By Pamela Connellan
Radio Rentals, or Rentlo as the business is known in South Australia, has posted an increase of 25.1 per cent in revenue from $196.8 million to $246.2 million, citing 48 month contracts as the key growth factor.
Radio Rentals’ gross consumer lease receivables grew by 75.2 per cent to $219.6 million. This increase was attributed to a shift from operating leases to finance leases.
Company sources said more customers are now choosing 48 month contracts, first introduced in December 2013. These longer term contracts have made larger products and whole room packages more affordable to consumers.
Furniture and other household items were the most popular categories and customer retention remained consistently strong with 48 per cent of customers completing a Rent Try $1 Buy agreement, taking a subsequent agreement for another item.
Thorn attributes overall growth to acquisition strategy
Radio Rentals’ parent company, Thorn Group Limited, posted these financial figures today, reporting an overall company group revenue figure of $293.8 million – an increase of $58.8 million on last year.
Thorn attributed the overall increase in revenue to its strategy of organic growth and acquisitions.
Thorn’s managing director, James Marshall, said the group’s continuing investment in new business opportunities – including Cash Resources Australia – had led to this strong result.
“While our core business continues to deliver good results, it is pleasing to see other parts of the business gaining scale, especially Commercial Finance, which delivered strong revenue growth and receivables above the $100 million mark,” he said.
“Thorn’s organic and acquisition growth strategy is starting to produce results and as we expect ongoing growth in receivables, we see sustainable growth ahead,” he added.