CARSALES BOOSTS PROFIT AND CONTINUES GLOBAL EXPANSION

Written on the 9 August 2016 by James Perkins

CARSALES BOOSTS PROFIT AND CONTINUES GLOBAL EXPANSION

A THRIVING finance division has helped boost Carsales.com (ASX:CAR) net profit after tax by 6 per cent to $109.3 million in FY16 as the business continued its global expansion.

Each of the Carsales.com divisions reported growth in revenue, but it is the 29 per cent year on year profit growth in finance and related services that stands out.

The business overall reported operating revenue of $344 million (up 10 per cent) and EBITDA of $170.3 million (up 10 per cent).

Carsales.com CEO and Managing Director, Greg Roebuck, says the growth in revenue and EBITDA reflects a focus on growing its global portfolio of classified advertising and complementary market businesses.

Dealer revenue is up 10 per cent year on year, while private seller revenue performance is up 19 per cent yoy and display revenue is up 9 per cent.

"We are building a dynamic global business; the economies of scale that come with this, along with our world leading technology, are helping us evolve our business. Dealers and consumers have the same high expectations in all of our markets. As we continue to transfer our world class technology and know-how into these markets, we see improved performance."

The company has made investments in South Korea and Brazil and both are delivering strong growth.

SK Enkar is South Korea's leading used car and spare parts company and delivered 21 per cent revenue growth, while the EBITDA margin was strong at 51 per cent. "We remain excited about the opportunity for further business expansion in the coming year," says Roebuck.

In Brazil, Webmotors reported underlying revenue growth of 13 per cent year on year. Operational improvements delivered 70 per cent growth in lead volumes and further business model improvements are planned.
The company bought 83 per cent of Chileautos, Chile, in the second half and 65 per cent of SoloAutos, Mexico, during the first half.

The company will deliver a fully franked dividend of 19.5 cents per share, up 10 per cent on the prior corresponding period.

CAR is trading steady at $12.37 per share this morning.


Author: James Perkins Connect via: Twitter LinkedIn

Latest News

1700 BRISBANE APARTMENTS NOW MANAGED BY FORTUNE 500 COMPANY JLL

MULTINATIONAL and Fortune 500 company JLL (NYSE: JLL) has expanded its Australian dominance in the property managemen...

HARVEY NORMAN HITS OUT AT 'FALSE NEWS' OF ASIC INVESTIGATION

RETAIL giant Harvey Norman (ASX: HVN) has vehemently rejected reports its accounts are under investigation by ASIC, s...

RARE GOOD NEWS FOR SLATER AND GORDON AS ASIC CLOSES INVESTIGATION

ASIC has cleared Slater and Gordon of deliberately falsifying its accounts after a three-month investigation.

It s...

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter