Online car classifieds business Carsales.com has announced it will begin using videos and social media with the launch of Pitchi.com after posting a 14% net profit increase to $95.5 million.
The result was just below market expectations of $96 million and was not enough to impress investors. Total operating revenue for the period jumped 10% to $235.6 million, with earnings before interest, taxes, depreciation, and amortisation (EBITDA) up 15% to $138.4m
Carsales.com chief executive Greg Roebuck says that domestic trading for the first six weeks of fiscal 2015 remained solid with a more detailed trading update to be provided at the company’s annual general meeting in October.
Roebuck adds that the company was geared towards newer opportunities, with Pitchi.com the latest attempt to expand its product offering. Pitchi is a video listing site that allows sellers to insert short video submission on the platform and also utilise social channels to appeal to consumers.
“The FY14 results are another strong representation of Carsales’ ability to evolve, innovate and execute,” says Roebuck.
“Strong performances across the established operations of private, dealer, display and data products and services were combined with the creation of new business opportunities in new markets and verticals.”
Soft-launched yesterday, Pitchi – an online selling platform which uses video to put a personalised spin on the sales pitch – lets sellers submit a 60 second video on their product to the site as well as their social media channels to drive interest in the product – a strategy Carsales believes will appeal to young and entrepreneurial sellers – keen to use their natural marketing skills.
Pitchi sellers are free to sell cars, boats, bikes and other products that Carsales sells through its listing sites. Content is moderated by the community, but Carsales also employs a full-time community manager to monitor posts and user complaints.
Carsales also recently acquired a 50% stake in Stratton Finance in July to complement its current loan program as well as provide the existing business with more equity.
According to Roebuck, Carsales had been pursuing the deal for a number of years, and the investment would give it an opportunity to become an external financial provider for smaller vehicle dealerships.
“We really see an opportunity for us to continue one of our core focus, which is assisting consumers for things that they need,” Roebuck said on Wednesday.
To read more on the Stratton Finance acquisition, which Autotalk covered, click here.
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