It’s been another successful year for Carsales, with its annual results showing revenue and after tax profit both on the rise.
Adjusted net profit after tax for financial year (FY) 18 grew to $131million, up 10%, while revenue climbed to $444m, up 19% on the prior corresponding period.
Carsales chief executive Cameron McIntyre says the results are excellent.
“We are pleased to deliver another record result for our shareholders, with the business making significant progress in executing our strategic priorities.
“We are delivering on our international growth strategy with the acquisition of the remaining stakes in SK Encar, our South Korean business, and Soloautos, our Mexican businesses, where there is significant long-term growth potential.
“We continue to be the clear market leader in auto classifieds in Australia, with a distinct advantage in all the key performance fundamentals of traffic, time on site, inventory and brand preference.
“We are delivering significantly more value to our commercial and consumer customers, which in turn has translated into positive financial outcomes for our business.”
Technology is influencing the way Carsales operates, with mobile devices now the primary tool to access its services, which has seen it put more money into that area.
“This focus is reflected in the release of our Autogate application for dealers, the introduction of SMS lead delivery technology, as well as the implementation of codeless calling on mobile devices,” McIntyre says.
He is also positive about the outlook for the next financial year.
“Our domestic core business performance in July has remained solid. We expect our domestic adjacent businesses to continue to build scale and complement this growth similar to FY18. We also expect our premium listing and depth products to continue to grow.
“Assuming market conditions remain stable in Brazil, we anticipate continued strong local currency revenue and earnings growth in FY19 for Webmotors. In South Korea, we are expecting solid revenue and earnings growth in FY19 for SK Encar.
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