NRMA posts $67 million profit, as membership and roadside assistance subscriptions grew
It has been a good year for the National Roads & Motorists’ Association with a 81% increase on last year’s results at $67.4 million net profit after tax and a growth to over 2.4 million members and roadside assistance subscriptions to 2.7 million.
NRMA CEO Tony Stuart said the results were in the face of growing competition in roadside assistance, as well as travel, car servicing and rentals. “We have had a particularly good year, in which more members have bought more services more often.”
The NRMA also recorded a 71% increase in operating profit on last year of $41.6 million. “Particularly pleasing is the operating profit for this year, because it shows that while costs have been managed tightly, our revenue from roadside operations and those additional services we now provide our members are going from strength to strength.”
“This is a strong result for the nation’s flagship Mutual and it sends a message to our 2.4 million members that in this, our 90thanniversary of roadside assistance, the NRMA has a bright future,” Stuart said.
While the NRMA has seen a significant lift in profit, the number of Aussies planning to purchase a new car has decreased by almost 13%, Roy Morgan data showed.
Roy Morgan industry director Jordan Pakes said the recent decrease in car-buying intention coincides with a strong decline in consumer and business confidence since the May Federal Budget announcement. “The main factor influencing this decline in consumer confidence is a growing proportion of Australians who expect to be worse off this time next year.”
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