Key highlights for the six months ending 31 December 2015 include:
“Of particular note was the strong increase in our membership base and the good growth in revenues from referral sources. Membership growth is our key focus at the moment as this provides a strong base for up selling of both subscriptions and referral revenues.”
Mr Greaves continued, “Having listed on the ASX and raised sufficient capital to drive strong growth, we are looking forward to the next 12 months where our key priorities are to continue to grow the Member base, improve conversion to Subscribers, increase referral revenue and build a more revenue focused team.”
Key Performance Indicators
Members are the key driver of value for the Real Estate Investar business. Members are offered a free set of online tools and services to help them analyse, identify and track investment properties.
Real Estate Investar then monetises its membership base through a range of paid subscription and referral up sell products and services. Subscribers are Members that take up a paid subscription.
Between the 31st December 2014 and the 31st December 2015 there was a 43.5% growth in Members and an 18.0% growth in paid Subscribers.
31 Dec 2015
|31 Dec 2014|
During CY 2015 there was an 18.0% increase in the number of Members taking up a paid subscription and thus becoming Subscribers. These Subscribers gain access to a broader set of online tools and services to provide greater assistance in their property investment activities.
Following the successful capital raising in December, the subscription team is being enhanced with the clear objective of significantly increasing the number of paid Subscribers as a percentage of the Member base.
Revenues for the Real Estate Investar Group grew by 6.0% year on year to $1.95 million.
On a pro forma basis, where costs associated with the listing of the company on the ASX are removed to provide a more realistic year on year comparison, the EBITDA for the company improved from a loss of $0.54 million in the first half of FY 2015 to a loss of $0.32 million in the first half of FY 2016.
|Pro Forma P&L ($m)|
Half Year Dec 2015
|Half Year Dec 2104|
|Cost of Sales|
There was a 21.0% reduction in employment related expenses when comparing the first half of FY 2016 with the first half of FY 2015. This was due to an organisational restructure of the business. It is expected that as new revenue generating employees are brought on board, employment related expenses will increase.
Priorities Next 12 Months
Following our successful capital raising and listing on the ASX in mid December, the focus for the company is now on: