Carsales.com posted a record 2017 full year profit. The result was slightly higher than market expectations with revenue growing by 8% over the year to $372.1 million.
Although the one off $7 million impairment charge in the first half of the year, from its 15.6% stake in iCar Asia, still impacted the full year result.
Over the year, the company listed strong growth in its Australian based businesses, thanks to higher demand from its tyresales and Redbook Inspect units. CAR also saw a pickup in premium listings on the back of improved customer experience with its new instant offer and natural language tools on their sites. Online Advertising increased by 12%, year on year (yoy), while data services added 10% revenue growth. Carsales domestic finance broking revenue fell 3% yoy, but the company did see a slight improvement in demand over the last quarter.
Carsales international segment was a highlight with revenue increasing by 87%. The company’s CEO, Cameron McIntyre said “our international strategy is beginning to bear fruit with some of our businesses around the world starting to deliver significant returns for the Company… with International revenue on a look through basis growing to be 12% of our total business.” International revenue from SK Encar lifted 29% in local currency.
CAR management also commented on the company’s outlook saying “if market conditions remain stable we anticipate revenue, EBITDA and NPAT growth will remain solid in the domestic core business”. Its international business is also expecting positive growth from Korea and Brazil. In Latin American the company expects the integration of the core Carsales IP and technology into its business units should provide an uplift in their revenue and earnings in FY18.
Carsales said it will pay a second half dividend of $0.215 a share on 19 October 2017.
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