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Rentals boost revenue

 

radio rentalsGrowing demand for smartphones, furniture, and TVs has boosted revenue and earnings at Radio Rentals and Rentlo.

The leasing business, run by finance firm, Thorn Group, grew revenue by 16 per cent in the year to March 31 to $197 million, while earnings rose by six per cent to $50 million.

Leases of furniture and smartphones increased significantly from the previous year, and strong demand continued for flat screen TVs and larger whitegoods, Thorn Group said.

But strong demand for Apple and Samsung products, which realise lower profit margins, had a detrimental impact on overall margins.

Thorn Group’s net profit in the year to March of $28.2 million, was up only slightly on the previous year, as the cost of growing its other businesses, which provide loans and credit, weighed on earnings.

The company expects to make a profit above $30 million in its 2014/15 fiscal year.

Thorn Group shares were down four cents, or 1.8 per cent, at $2.16 at 1215 AEST.

AAP

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