Home » Carsales.com sees profits and shares suffer
Carsales.com, an online vehicle marketplace, recently revealed they saw an 82% drop off in first half profits.
Carsales.com tumbled after it confirmed an 82% slide in first-half profit on the back of a $48 million impairment against its stake in Stratton Finance.
Shares in online vehicle marketplace Carsales.com have tumbled after it booked an 82 per cent drop in first-half profit following a $48 million impairment against its stake in Stratton Finance.
The company posted a net profit of $11.1 million for the six months to December 31, down from $60.58 million a year ago, following the worse-than-expected performance of Stratton, of which Carsales.com owns 50.1 per cent.
Half-year revenue was up 17.2 per cent to $235 million, including a 12 per cent lift in private seller revenue performance to $41.5 million, and strong earnings growth in the company's two largest overseas investments, Korea and Brazil.
This was offset by a 16 per cent drop in display advertising revenue to $29.9 million.