Australia’s leading online automotive, motorcycle and marine classifieds business, carsales.com Limited (ASX: CAR) has released its half-year results for FY 2019. The company has posted reported revenue of $235 million in 1H FY19 which is 17% higher than the prior corresponding period (PCP). Further, the company earned reported EBITDA of $98 million which is 8% higher than PCP.
According to the company’s CEO Cameron McIntyre, the company has performed well across most of its key business areas in H1 FY19. The Board has declared an interim dividend of 20.5 cents per share which will be paid on 5 April 2019 with the record date of 20 March 2019.
In its international segment, the company has reported revenue growth of 79% and EBITDA growth of 83% for the half year period. Further, the company has witnessed underlying revenue growth across its entire international portfolio. In Brazil, the company’s performance was very well, with underlying local currency revenue growth of 31% and EBITDA growth of 54%. In Korea, the company delivered an excellent result with underlying local currency revenue and EBITDA growth of 20% and 22%, respectively. During the half year period, the company completed the acquisition of the remaining 16.7% stake in its Chilean business, chileautos.
CEO Cameron McIntyre commented that the company is making excellent progress in advancing its international growth strategy. In the Domestic market, the company has maintained its clear leadership positions across all metrics, including inventory, customer engagement, and reputation. During the half year period, the company experienced a pleasing growth of 8% in the domestic dealer business, driven by ongoing growth in used car lead volumes, yield improvements and continued to increase in-depth product penetration.
In domestic private business, the company’s performance was solid, with revenue up 12% on PCP. The revenue growth was underpinned by growth in premium private advertising products, as well as its adjacent market businesses.
While commenting on the company’s outlook, Cameron McIntyre informed that the management of the company is monitoring its performance and market conditions in every market in which it is currently operating. Assuming that the company’s performance and market conditions remain consistent, the company is anticipating that the revenue, EBITDA and Adjusted NPAT will witness moderate growth in H2 FY19.
While commenting on the company’s domestic outlook, Cameron McIntyre told that the Domestic core business performance in January has remained solid, with the exception of display advertising. While the display segment remains challenging, the company is anticipating improving performance in the second half of FY 2019.
On the International outlook, Cameron McIntyre told that in Brazil, the company is anticipating continued strong local currency revenue and earnings growth in the second of FY 2019. Further, in South Korea, the company is expecting good local currency revenue and earnings growth in H2 FY 2019.
In the past six months, the share price of the company decreased by 14.88 percent as on 12 February 2019 and trading at a PE Multiple of 15.960x. CAR’s shares traded at $11.520 with a market capitalization of circa $2.97 billion as on 13 February 2019.
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