RAC reports major profit lift

RAC Group ended the financial year with a $46 million profit, significantly up from the $7.97 million recorded in the previous reporting period.

The business today released its results in the year to June 2023, reporting a net profit after tax of $46 million and a bump in revenue at $1.4 billion, an increase from $1.2 billion in FY22.

Its assets as of June 30 is valued at $1.04 billion, according to the report.

A $15 million revaluation of the group’s investment portfolio contributed to RAC’s total profit.

In FY22, the group’s bottom-line profit was affected by a $67 million negative revaluation of its investment portfolio.

RAC chief executive Rob Slocombe and president Allan Blagaich said the group’s member benefits program set a milestone of $79.8 million in benefits provided to members in FY23.

Mr Slocombe and Mr Blagaich said RAC responded to more than 2.6 million calls and more than 370,000 vehicle breakdowns in the past financial year.

There was a jump in the group’s insurance claims expense, from $648 million recorded in FY22 to $768 million.

RAC also reported an increase in membership over the year, recording $106.4 million in subscriptions revenue.

In June, the group ceased operation of its RAC Intellibus which was Australia’s first driverless vehicle trial, launching in three spots in WA.

The Intellibus was launched in 2016 in South Perth, Busselton and Geraldton.

Tourism

Almost 400,000 nights In FY23 were booked at RAC's nine holiday parks and resorts across WA, the report said.

The FY23 report said there was a significant increase in occupancy at its Esperance Holiday Park after the venue went through a redevelopment.

The opening of the state's border in March 2022 also contributed to the continued increase in sales of travel insurance in FY23, RAC Group reported.

"The resulting sales commissions are significantly higher than both the prior year and pre-COVID levels," the report said.

RAC Group reported an increase in tourism revenue in FY23, recording $51.5 million compared to $48.7 million in the previous financial year.