Expansion drives Carsales profit
And the new and used car seller expects earnings to grow by 15 per cent in the full year.
Carsales shares were up 50 cents, or 5.3 per cent, at $9.88 at 1313 AEDT.
Greg Roebuck, CEO of Carsales.com, says the company had been busy launching products in the past six months, most of which enhance the experience of its customers and make it easier to find cars.
Revenue from the company’s dealer and data services business was up 12 per cent, while revenue from private sellers rose seven per cent, despite the cars sector being squeezed by manufacturers withdrawing new car inventory.
Roebuck said the company’s investments in Webmotors, the largest online automotive classifieds business in Brazil, and in iCar Asia, were also performing well.
Carsales made a net profit of $43.9 million in the six months to December 31, up from $37.6 million in the same period a year earlier.
The company expects to repeat the performance during the second half and has forecast full year earnings of around $138 million, compared to $120 million in 2012/13.