Carsales (ASX:CAR) reports excellent growth in Asia

Be the First to Comment Read

Carsales (ASX:CAR) reports excellent growth in Asia

Carsales.com Ltd, COVID-19 lockdowns, EBITDA, Final dividend, South Korea
Image source: Pexels

Highlights

  • In its AGM update, Carsales.com reveals that excellent results in Asia are driven by solid growth in South Korea.
  • In FY22, carsales is planning to launch a differentiated digital product experience called carsales Select.
  • The Company has declared a final dividend of 22.5 cents per share, representing an 80% payout ratio.

ASX-listed Company which owns and operates a portfolio of automotive and related industry websites Carsales.com Ltd (ASX:CAR) shared in its AGM update on 29 October 2021 that the Company has reported good earnings growth across its Domestic and International businesses despite the impact of COVID-19 lockdowns. 

The Company today revealed:

  • Expanded Group Adjusted EBITDA margin to 58%, whilst continuing to invest for the future.
  • The strong international result with South Korean revenue up 21% and International now representing 24% of look-through revenue.
  • Excellent free cash flow generation and a strong balance sheet which supports a final dividend of 22.5 cents per share, representing an 80% payout ratio
  • CAR has delivered 4% growth in Adjusted Revenue.
  • Adjusted EBITDA growth of 10%, reflecting strong margin performance.
  • The Coronavirus pandemic has accelerated the readiness of consumers to trade in used cars online.
  • The Company has outstanding free cash flow generation and a strong balance sheet that supports a final dividend of 22.5 cents per share, representing an 80% payout ratio.

Read More: Newcrest closes a tad higher on ASX. Here’s why

The Company stated that the final dividend of 22.5 cents per share, down 10% on pcp, reflects the increase in the number of shares from the recent entitlement offer in relation to the Trader Interactive acquisition.

Today, the stock CAR was spotted trading at a low of 1.771% at AU$24.970 per share on ASX at 12:48 PM AEDT.

Read More: How Macquarie (ASX:MQG) managed to double its first half profit

Bottom Line

The Company is well-positioned to continue delivering long-term shareholder value through world-class capability, exposure to international growth markets and investment in new products and services. 11% growth in Capex announced today reflects CAR’s continued investment in technology platforms and new products to drive future growth. In FY22, carsales is planning to launch a differentiated digital product experience called carsales Select. The Company is focused on helping dealers to bring more of the car buying process online.

Disclaimer

Speak your Mind

Featured Articles

Ad
kalkine logo

GET A FREE STOCK REPORT

Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK