iCar Asia’s Shares Skyrocketed Over 38% After Reporting Positive Results In Q4 2018

ASEAN's leading network of automotive portals, iCar Asia Limited (ASX: ICQ) released its December quarter result today (i.e. 11 January 2019), following which the share price of the company climbed up by 38.462 percent (AEST 1:34 PM).

The Cash receipts in the 2018 December quarter increased by 36 percent to A$3.0 million as compared to the December quarter of 2017. This is the fourth consecutive quarter in which the company has received cash receipts of over A$3 million.

Further, the EBITDA and cash flow from the company’s Thailand operation s were also positive in December, and it is expected to continue on a quarterly basis and is in line with iCar Asia’s original guidance.

The company’s Malaysian business also witnessed positive EBITDA and cash flow in Q4 2018. The number of paid accounts in Malaysia increased by 12% in Q4 2018 as compared to Q3 2018 with the continued growth and win back of accounts after the price increases in May 2018.

In Indonesia, the company introduced Used Car subscriptions and restrictions on free listing during December quarter. The average number of paid accounts in Q4 2018 per month remained flat as compared to Q3 2018. The listings and audience increased by 5 percent by 16 percent respectively in Q4 2018 as compared to Q4 2017. Overall the company’s audience increased by 17% in Q4 2018 as compared to the corresponding quarter in 2017.

As per the announcement, the Auction business which was launched in the second half of 2018 is also performing well with the gross market value of cars sold reaching AUD$2.3 million. The company has also fully optimized the process of auction sales which includes escrow payments from buyer to seller. Due to the escrow payments method, the cash receipts and payments are getting impacted as the business holds cash in escrow from the buyer while the transaction is completed with the seller. As the Auction business has become significant, the company has decided to separately disclose the net receipts from the auction business from Q4 2018 onwards in quarterly cash results.

The company’s net cash used in operating activities decreased by 19 percent as compared to the third quarter. As iCar Asia’s two largest markets (Malaysia and Thailand) are now positive cash contributors, the company is expecting reductions in the net operating cash flow in the coming quarters.

Meanwhile, in the last six months, the share price of iCar Asia decreased by 45.83 percent as on 10 January 2019. ICQ’s shares traded at $0.180 with a market capitalization $49.74 million as on 11 January 2019 (AEST 1:34 PM).


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