RENT.COM.AU LIMITED — Interim / Quarterly Report 2016

Jan 28, 2016

ASX Announcement

29 January 2016

QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDING 31 DECEMBER 2015

Rent.com.au Limited (ASX: RNT) ("RENT" or "the Company"), Australia's leading property web portal dedicated exclusively to rental property, presents its quarterly activities report for the quarter ending 31 December 2015.

HIGHLIGHTS

• Record quarterly unique visitor ("UV") results achieving first phase audience growth objective;
• Rapid increase in agent registrations and non‐agent landlord listings;
• 5‐year exclusive agreement with Certegy Ezi‐pay announced; and
• $3.7 million in additional capital raised.

OPERATIONAL UPDATE

At the time of its ASX listing in June 2015, RENT set itself three core objectives for its first 12 months post listing. These were:

• To drive online awareness of www.rent.com.au by growing audience to 500,000 UV's;
• To significantly increase levels of rental property listings from non‐agent landlords; and
• To increase content from, and sales to, property agents.

RENT is ahead of schedule on those objectives, having grown its audience to more than 500,000 UV's in October and November and at the same time significantly increasing both agent and non‐agent registrations and listings.

RENT Managing Director, Mr Mark Woschnak said: "Our significant achievements in the past quarter have put RENT in a strong position to start moving to the next phase of its growth, including content growth, deploying a national field sales team and launching additional products aimed at making the renting process easier."

Website Traffic

RENT achieved a record quarterly unique visitor result despite the usual seasonal slowdown in November and December, with an average of 520,000 UV's per month during the quarter, up 47% from the previous quarters' average monthly UV's. RENT expects traffic to continue growing for the remainder of FY16, albeit at a slower rate than the preceding six months, as it focuses on products, further increasing its strong site metrics and driving higher levels of renter registration and enquiries to agents and non‐agents.

Average Monthly Unique Visitors

Non‐agent Landlord Listings

During the quarter RENT continued to increase listings from non‐agent landlords, with more than 1,000 new listings in November alone. This is a small but significant percentage of the non‐agent managed market. RENT is the first online rental portal specifically targeting this fragmented market, adding to its agent listings to provide Australia's 7 million renters with the widest choice of properties. Based on the encouraging results of the past six months, RENT will increase its investment in shifting non‐agent landlords online and providing them with a range of products to make the process of letting a property easier.

Mr Woschnak said: "We understand that property investors strive to manage their investment properties professionally, and to provide the right levels of service to their tenants, yet we know from ABS statistics that almost half of all residential properties are not managed by real estate agents. RENT aims to create the best marketplace possible, providing a suite of professional standard tools and services in order to deliver a high quality and cost effective solution to landlords across Australia, whether they use a property management professional or not".

Property Agent Content

During the quarter, RENT trialled field sales personnel in Western Australia to validate its forecasts of upselling property agents onto RENT's premium plans.

"After three months of the trial we have achieved good results, allowing us to confidently continue the roll out of a national field sales team, which we intend to complete by April 2016," Mr Woschnak said.

In addition to sales efforts, property agents have continued to adopt www.rent.com.au with almost 6,700 agents now registered with the site. This has driven an increase in the number of listings on site to more than 63,000.

"We have integration with about 60 different software providers to the industry so it's easy for agents to opt in to have their listings automatically loaded to www.rent.com.au. With a growing number of views and enquiries on properties advertised on our site, our agent customers see the value in adding a premium RENT package to their online offering," Mr Woschnak said.

OUTLOOK

Over the coming quarter the Company is moving into the next phase of its growth which involves:

• Continuing to grow the number of listings on site from both agents and non‐agents;
• Completing the roll out of the national field sales team;
• Launching additional products aimed at making the rental process easier; and
• Preparing the next phase of the national branding campaign.

ENDS

Further information: John Gardner / Peter Kermode, Citadel‐MAGNUS +61 8 6160 4900

ABOUT RENT.COM.AU

Rent.com.au is the only national web portal in Australia that focuses solely on the rental property market and includes listings from both property agents and non‐agent private landlords. Rent.com.au was established in 2007 by experienced real estate and new media entrepreneur Mr Mark Woschnak, who has more than 25 years' experience in real estate, digital publishing and classified services.

Since inception, Rent.com.au has focussed on the development of the necessary technology, product alliances and critical mass of content to be ready to fully commercialise the platform. With about 80% of all agent listings content already, Rent.com.au has also commenced shifting the large volume of offline non‐agent landlord listings to online at www.rent.com.au in order to create the complete rental marketplace, within which it can provide products and services to make the renting process easier.

Rule 4.7B

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10

Name of entity RENT.COM.AU LIMITED ABN Quarter ended ("current quarter")

25 062 063 692 31 DECEMBER 2015

Consolidated statement of cash flows

Cash flows related to operating activities		Current quarter$A'000	Year to date(Six months)$A'000
1.1	Receipts from customers	162	231
1.2	Payments for(a) staff costs(b) advertising andmarketing(c) research anddevelopment(d) leased assets	(747)(491)(81)	(1,251)(824)(104)
1.3	(e) other working capitalDividends received	(451)	(583)
1.4	Interest and other items of a similar naturereceived	11	23
1.51.61.7	Interest and other costs of finance paidIncome taxes paidOther (provide details if material)	(12)	(19)
	Net operating cash flows	(1,609)	(2,527)

+ See chapter 19 for defined terms.

		Current quarter$A'000	Year to date(Three months)$A'000
1.8	Net operating cash flows (carried forward)	(1,609)	(2,527)
1.9	Cash flows related to investing activitiesPayment for acquisition of:(a) businesses (item 5)(b) equity investments(c) intellectual property
1.10	(d) physical non‐current assets(e) other non‐current assetsProceeds from disposal of:(a) businesses (item 5)(b) equity investments(c) intellectual property(d) physical non‐current assets(e) other non‐current assets	(4)(157)	(71)(187)
1.111.121.13	Loans to other entitiesLoans repaid by other entitiesOther (provide details if material)
	Net investing cash flows	(161)	(258)
1.14	Total operating and investing cash flows	(1,770)	(2,785)
1.151.16	Cash flows related to financing activitiesProceeds from issues of shares, options, etc.Proceeds from sale of forfeited shares	3,688	3,688
1.171.181.19	Proceeds from borrowingsRepayment of borrowingsDividends paid	118(19)	133(30)
1.20	Other (issue costs)Net financing cash flows	(243)3,544	(243)3,548
	Net increase (decrease) in cash held	1,774	763
1.211.22	Cash at beginning of quarter/year to dateExchange rate adjustments to item 1.20	3,442	4,453
1.23	Cash at end of quarter	5,216	5216

+ See chapter 19 for defined terms.

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities

		Current quarter$A'000
1.24	Aggregate amount of payments to the parties included in item 1.2	186
1.25	Aggregate amount of loans to the parties included in item 1.11	Nil
1.26	Explanation necessary for an understanding of the transactions

The amount includes director fees paid to each of the directors, and also includes company secretarial, financial management and corporate advisory fees paid to an entity related to Mr Phil Warren and office rent paid to an entity related to Mr Garry Garside.

Non‐cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
• 2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available$A'000	Amount used$A'000
3.1	Loan facilities
3.2	Credit standby arrangements

+ See chapter 19 for defined terms.

Reconciliation of cash

Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows)to the related items in the accounts is as follows.		Current quarter$A'000	Previous quarter$A'000
4.1	Cash on hand and at bank	4,912	3,138
4.2	Deposits at call	304	304
4.3	Bank overdraft
4.4	Other (provide details)
	Total: cash at end of quarter (item 1.23)	5,216	3,442

Acquisitions and disposals of business entities

		Acquisitions(Item 1.9(a))	Disposals(Item 1.10(a))
5.1	Name of entity
5.2	Place ofincorporation orregistration
5.3	Consideration foracquisition ordisposal
5.4	Total net assets
5.5	Nature of business

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.
• 2 This statement does /does not* give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: ............................ (Director/Company secretary) ----------

29 January 2016

Print name: ......................................................... Jan Ferreira

+ See chapter 19 for defined terms.

Notes

• 1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• 1. The definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report except for any additional disclosure requirements requested by AASB 107 that are not already itemised in this report.
• 1. Accounting Standards. ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

+ See chapter 19 for defined terms.