Carsales.com, the online car marketplace, recently announced an 82% fall for profit during the first half after a $48 million impairment against their portion of ownership 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.
“The performance of our display advertising business division in the first half of this financial year has been challenging in a tougher market for finance, insurance and new car sales in Australia,” Chief Executive Cameron McIntyre said recently.
“(But) our inspection and tyre sales businesses continue to be key components in our adjacent market growth strategy, enabling us to service consumers across more of the auto ownership cycle.”
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