The operator of carsales.com.au has reported its half-year profit for the six months ended December 31.
The results are complicated by a one-off $333 million gain in the prior corresponding period on the step-acquisition of Trader Interactive.
That means the $117 million net profit attributable to members shows up as being down 71.9% on the same period a year earlier.
However, the company’s revenue was up 60% to $531 million and its adjusted net profit was up 33.5% to $162.7 million.
Car Group’s directors say this number, which removes various one-off costs and gains, better reflects the underlying performance of the firm.
Analysts have also focused on this number.
“This is a good result from the company, but largely in line with expectations, so we’d expect the stock to trade in line with the market today,” wrote E&P Capital analyst Entcho Raykovski.
RBC Capital Markets analyst Wei-Weng Chen noted the result showed a continued normalisation in car markets following a massive disruption during COVID.
“CAR highlighted that New Car Listings and Median Time to Sell metrics have both normalised to pre-COVID levels with Listings up +19% but Time to Sell down -22%. Car prices have fallen c.10% y/y but remain 41% above pre-COVID.”
Car Group CEO Cameron McIntyre said the local automotive market is holding up well, despite steep interest rate rises.
“The Australian automotive market continues to be resilient despite cost of living and higher interest rate pressures, with traffic and enquiry volumes to carsales.com.au in December all tracking above the same time last year,” he noted in the results release.
“Car market conditions are positive for consumers looking for a car, with improved new car availability as well as a moderation in used vehicle pricing from COVID highs offering consumers more choice when it comes to their next vehicle purchase.”
He will be speaking to Kirsten Aiken for The Business, and you can watch that interview on ABC News Channel at 8:45pm AEDT, or anytime via iView and the ABC’s YouTube channel.
For full disclosure, I have a small holding of Car Group shares.
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