CARSALES REVS UP RESULTS
Written on the 10 February 2016
CARSALES.COM (ASX: CAR) has reported its results for the first half of financial year 2016, a period the company has zoomed through.
Melbourne-based Carsales reported total operating revenue of $167.3 million, up 11 per cent from the same period the year before, and earnings before interest, depreciation and amortisation (EBITDA) of $81.5 million which is up 12 per cent from that period.
Online advertising delivered the lion's share of revenue - $115.8 million, followed by finance and related services at $33.4 million.
Company CEO and managing director Greg Roebuck says Carsales has delivered on its strategy to drive sustainable growth by branching out.
"To once again deliver record half year results to our shareholders while growing our market leading position through expansion of the breadth and depth of car sales services to all our customers is testament to the strength of the domestic business and the growth potential of our international strategy," says Roebuck.
"Our investments in international markets will continue to deliver revenue and earnings growth resulting in long term value creation to shareholders."
Brazilian and South Korean international investments are paying well in the local markets, while Carsales completed the acquisition of 65 per cent of SoloAutos in Mexico during the half year.
Carsales' domestic business also performed solidly year on year, with dealer revenue up 9 per cent.
Private seller revenue performance tracked double-digit growth, up 15 per cent, and equally did finance and related services which had organic growth of 17 per cent year on year.
Carsales' has declared a fully franked interim dividend of 17.8c per share to be paid on 15 April 2016.