Carsales strong first half results driven by pandemic

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Carsales strong first half results driven by pandemic

The continual demand for private vehicles and the demand for lifestyle assets have seen a strong first half for online car marketplace carsales.

Its revenue increased 30 percent to $282 million and EBITDA jumped 15 percent to $149 million.

Cameron McIntyre, group CEO at carsales said the strong performance of the business in the first half reflects the “diverse nature” of the business, highlighting the significant potential for future growth and the ability of the business to perform through a range of market conditions and dynamics.

The CEO said, “We have seen very strong consumer engagement across our global network of sites, with traffic up 12 percent versus pre-pandemic levels. This reflects the quality of our marketplaces, ongoing investment in product and customer experience, the accelerated migration to digital platforms and changing consumer trends.”

Demand for cars globally has been strong due to lower public transport usage, the absence of international travel and the evolution of more flexible working arrangements, McIntyre said.

“Demand for lifestyle assets has also strengthened, particularly caravans, motorbikes and boats as consumers seek socially distanced outdoor travel and leisure activities. The rising levels of participation in our industries positions the business well into the future,” he said.

The company applauds its continued success of international growth with it posting strong performances in South Korea and Brazil and successful acquisition of 49 percent of Trader Interactive which has leading positions in large and attractive lifestyle and commercial verticals in the United States

“Our international growth strategy continues to deliver. Our three largest international assets in South Korea, the United States and Brazil continue to demonstrate impressive growth profiles. Each business delivered excellent double digit revenue growth in the first half and all have significant upside potential,” McIntyre said.

“Since completing the acquisition of Trader Interactive in September, we continue to be very impressed with the Trader management team and the operations and fundamentals of the business. The business has continued to perform very well and we are confident in our ability to deliver value for shareholders through this investment.”

McIntyre said the company’s focus is now on working closely with the Trader Interactive team, as it looks to leverage market expertise, technology innovation and new product development to drive improved financial returns.

“Globally, we are investing in moving more of the buying and selling journey online, and this positions us well as we look to partner with our dealer customers to deliver an improved consumer experience and significant long term growth opportunities across all our businesses,” he added.

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