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February, 2024

Carsales parent Car Group reports stellar half-year results, citing transformative acquisitions and strong performance

By: admin

CAR Group Limited has reported robust half-year results for the period ending 31 December 2023, showing double-digit growth in both revenue and earnings across all key markets.

The company saw double-digit growth across the Private, Dealer, and Media revenue segments in Australia. CAR Group’s Brazilian business, webmotors, delivered exceptional revenue and earnings growth in the first full six months of majority ownership.

The company attributes its strong performance to transformative acquisitions in the US and Brazil in FY23, as well as solid performance in Australia and Korea.

Proforma revenue was $531m, an 18% increase on the prior corresponding period (pcp), and Proforma EBITDA was $277m, up 19% on pcp. Adjusted revenue was $531m, up 60% on pcp, and Adjusted EBITDA was $277m, a 56% increase on pcp. Reported EBITDA was $269m, up 63% on pcp, while Reported NPAT was $117m, down from $416m in pcp.

“CAR Group has had an excellent first half of the financial year. With the completion of the acquisitions of Trader Interactive and webmotors last year, we have accelerated our growth strategy and are executing on key strategic priorities across the group,” said Cameron McIntyre, CEO of CAR Group.

The company declared a 50% franked interim dividend of 34.5 cents per share, up 21% on pcp. CAR Group maintained market leadership in all key regions, delivering a global unique audience of over 45 million people per month.

“Our financial results reflect the significant progress that has been made in delivering on our key strategic priorities and the resilience of our business through economic cycles,” McIntyre added.

“The addressable markets we operate in are large and under penetrated. We are positive about the multiple levers that CAR Group has to deliver future growth,” McIntyre stated.

Looking ahead to FY24, CAR Group expects to deliver good growth in Revenue and EBITDA on a proforma basis, very strong growth in Revenue and Adjusted EBITDA, and strong growth in Adjusted NPAT on an actual basis.

“The excellent momentum we have built heading into the second half provides confidence in our ability to deliver another year of great results for our shareholders,” McIntyre said.