Carsales sees fourth consecutive reporting period with double-digit growth
In its half-year earnings for 2023, digital automotive marketplace Carsales reported $28.3 million or 10% growth in Australian media revenue, attributed to its diversified target segments and advertising products.
During a presentation to investors, the company said the media operations have delivered a fourth consecutive reporting period with double-digit revenue growth.
[click to enlarge]
In the six months that ended 31 December 2022, Carsales launched Customer Data Platform (CDP) and a beta version of self-serve media platform, Carsales Ignition.
Overall in this period, Carsales saw $331.8 million in reported revenue, a 37% growth year-on-year (YoY). The reported EBITDA (earnings before interest, taxes, depreciation, and amortisation) was $164.9 million, a 31% growth YoY.
Apart from media operations, the dealer and private advertising segments also witnessed double-digit growth. The company attributed this to factors including strong used car demands and strong private seller markets.
Looking into 2023, Carsales expected revenue growth across all fronts, including the media and new car market, where the company saw the potential for continued expansion of native ad products programmatic capability and non-automotive diversification.
Group CEO of Carsales, Cameron McIntyre, said: “The group delivered double-digit revenue and earnings growth demonstrating both a highly resilient business model with a track record of growth through the cycle as well as strong operating discipline.
“We continue to ramp up the digitisation of vehicle buying and selling in all markets, integrating finance into our product portfolio. We are seeing excellent adoption of our digital trade-in products in Instant Offer and Dealer Direct.
“We are seeing good levels of consumer demand in our key markets and inventory is approaching pre-pandemic levels – this growth in inventory is driving demand for dealer premium and depth listings.”
Carsales trades at $22.73 on 13 February, with a market capitalisation of $7.99 billion.
Got a tip?
Darcy Song was a reporter at Mumbrella, covering media owners, adtech and social platforms. She left in October 2023.
Linkedin
Have your say