We are obviously very pleased to announce such a positive result, particularly at a time when other businesses are being so heavily impacted by the current economic conditions.
John Hughes, Managing Director, Radio Rentals

Related podcasts: Peter Krideras, Marketing & Merchandise Manager, Radio Rentals.

Radio Rentals, Australia's largest rent-to-own operator, announced a 29% increase in profit for the first half of the company's 2008-2009 fiscal year ended September 30, 2008. Continued strong demand for flat-panel TVs and computers drove a 16% increase in rental revenue compared to the same period in 2007. Same store sales increased 4.4%.

Customer growth for the period was 5.6% (4.2% for comp stores). Average units on rent per customer remained steady at 2.41 for the period and the average revenue per customer increased marginally to $127.57.

"We are obviously very pleased to announce such a positive result, particularly at a time when other businesses are being so heavily impacted by the current economic conditions," said Radio Rentals' managing director John Hughes. Hughes said the company expects full year results to meet analysts expectations of 7-10% increase in after tax profit.

Radio Rentals also reported record low past-due accounts for the period resulting from a number of initiatives introduced over the past two years. In May 2008, Hughes said that automated debits accounted for 65% of Radio Rentals' revenue.

Radio Rentals this week entered the retail CE business with the launch of Big Brown Box (see story).

The company's cash-advance business, launched in February of this year, achieved $3 million in loans and a lower than expected level of past due accounts and charge-offs.

Hughes said that many of Radio Rentals' customers will not be impacted by the economic turmoil to the same extent as those in other demographics. "In fact, tougher market conditions could work in our favor," he said.