Collaborate Corporation Limited (ASX:CL8) is pleased to present an update on trading activity for its DriveMyCar business unit. DriveMyCar recorded strong revenue growth during the September 2015 quarter which has accelerated since the July 2015 Trading Update released on 12 August 2015.
All key revenue and profit metrics improved during the September 2015 quarter when compared to the preceding quarter. Most notably, Rental Transaction Value for the September 2015 quarter increased by 31% to $362,045, Gross Profit increased by 45% and Net Rental Days Realised increased by 26% to 8,344 days.
The quarter-on-quarter growth was due to a greater proportion of the marketing budget being devoted to driving demand and an increase in corporate rentals following the launch of DriveMyCar Business. The quality of the DriveMyCar fleet continues to grow as a result of improved marketing and PR campaigns. An improved supply of vehicles from corporate fleets has resulted in an increased pool of available vehicles and in turn, more sales enquiries being converted into sales.
To continue acceleration of sales growth, the Company has appointed a Corporate Business Development Manager to secure further agreements with partners such as fleet owners, vehicle and caravan manufacturers, tourism providers, membership rewards programs, car dealers and vehicle servicing providers. A telesales operation has also been established to target corporate clients and expand sales of DriveMyCar Business. “We are very pleased to see that the effort we have put into marketing, PR, PeerPass and DriveMyCar Business delivering increased revenue and profitability at an accelerating rate.” said Chris Noone, CEO of Collaborate Corporation.
CL8 Price at posting:
2.0¢ Sentiment: Buy Disclosure: Held
