Carsales Shifts Up A Gear And Delivers Another Record Result

Carsales Shifts Up A Gear And Delivers Another Record Result
THIS Limited has announced strong results for the 2016 financial year. The company reported total operating revenue of $344.0 million, up 10 per cent on the previous year and posted a 6 per cent rise in profit to $109 million.

The company which owns Australia’s number one car classifieds business put to strong results down to a strong Australian market and solid performances by its international business including its newly acquired Mexican and Chilean operations.

carsales CEO and managing director Greg Roebuck said carsales’ strategy to drive sustainable growth with a global portfolio of classified advertising and complementary market businesses is delivering and that the growth in FY16 revenue (up 10 per cent on pcp) and EBITDA (up 10 per cent on pcp) reflects this.

“We are building a dynamic global business; the economies of scale that come with this, along with our world leading technology, are helping us evolve our business. Dealers and consumers have the same high expectations in all of our markets. As we continue to transfer our world class technology and know-how into these markets we see improved performance.

“To once again deliver record full year results to our shareholders whilst consolidating our domestic market leading position is testament to the strength of the carsales team and its ability to drive our domestic and international growth strategy forward,” Roebuck commented.

“Our domestic core business revenue and EBITDA have continued to perform well throughout the year and have been very well supported by significant new business initiatives and the very strong performance of our Finance and Related Services division.

“We continually seek to expand our breadth and depth of services to provide an unmatched and frictionless experience to our customers. Integration of vehicle inspection services via our Redbook Inspect business and our (soon to be released) payment service via PromisePay (a business we recently invested in), are great examples of how we’re making the buying, selling and purchasing of cars easier and safer.

“Along with instant offer, products such as our New Car Showroom (released in June) will all contribute to growth in the future.”

Carsales shares were up over three per cent to $12.76 at 1pm on Tuesday.

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