Disruptive Investment Group, the company which now owns Check-in.com.au, yesterday revealed the business burned through more than $15,000 per week last financial year.
In a 4c filing to the Australian Stock Exchange, DVI reported a negative ‘net operating cash flow’ of -$824,000 for the year to June 30.
Net commission revenue from bookings was just $477,000 before expenses.
DVI’s biggest expenses were director’s fees at $239,000 and ‘other working capital’ at $532,000.
Staff wages for the year were low at $178,000 while fees paid to consultants reached $136,000.
On June 30, DVI had $1,985,000 in the bank and no debt.
In a separate update, DVI said it had cut back on search marketing for Check-in, which has impacted on booking volume.
For example, total transaction value peaked in Nov, 2013, at $443,000.
This May TTV was $313,000 and slightly lower in June; $305,000.
Commission income fell accordingly.
In May it was $42,261, in June it dropped to $38,276.
The company said Check-in’s online marketing is now focussed on search engine optimisation and database marketing.
DVI bought Check-in.com.au for $35,000 in May, 2013, after the business went into receivership owning industry creditors at least $4.5m.