Cameron McIntyre, CEO of Carsales, commenting on the FY18 results said:
“It has been an excellent year for the Carsales business and we are pleased to deliver another record result for our shareholders, with the business making significant progress in executing our strategic priorities. We are delivering on our international growth strategy with the acquisition of the remaining stakes in SK Encar, our South Korean business, and solo autos, our Mexican businesses, where there is significant long-term growth potential.
“In FY18 we have reinforced our leadership position in our core domestic market by continuing to invest in key product and technology innovations and driving improved customer outcomes. Our inspection and tire sales businesses each had very strong years, contributing to our adjacent markets growth strategy.
“We are committed to maintaining an innovative and agile business that is capable of evolving in a fast-
changing environment which, combined with a strong focus on our strategic priorities, positions us well for continued growth”.
- Delivering consistent returns for shareholders across all key metrics:
- Reported revenue of $444m, up 19% on the prior corresponding period (pcp)
- Reported EBITDA of $205m, up 16% on pcp
- Adjusted NPAT of $131m, up 10% on pcp
- Reported NPAT of $185m, up 69% on pcp
- Adjusted EPS of 54c, up 10% on pcp
- Final dividend of 23.7c, up 10% on pcp
Delivering on our international growth strategy:
- Completed the acquisition of the remaining stakes in our SK Encar and Soloautos
- International look through revenue growth of 54% and International look through EBITDA
growth of 76%;
- Strong underlying revenue growth across our entire international portfolio, as we
continue to deploy Carsales IP and technology;
- Brazil is the standout performer, with revenue growth of 28% and EBITDA growth of 81%.
- Reinforcing our domestic market leadership position and growing adjacent markets:
- Domestic revenues grew 12% on pcp, with core business margins continuing to expand;
- Pleasing growth of 8% in the domestic dealer business, with improved momentum in H2
driven by the release of product enhancements and improving consumer sentiment.
Increased penetration of premium listing products continues to drive higher yield;
- Strong performance from the domestic private business, with revenue up 21% on pcp.
This was underpinned by growth in premium private advertising products as well as our
adjacent market businesses;
- Redbook Inspect has experienced considerable growth this year with inspection volumes
up 15% on pcp. RedBook Inspect’s integration into the Carsales Group is delivering
positive results with increasing penetration of both consumer pre-purchase inspections
and dealer pre-sale inspections;
“Our online tire business, tire sales, delivered a strong revenue result, reflecting our compelling value proposition to consumers.”
Cameron McIntyre, CEO of car sales stated: “We continue to be the clear market leader in auto classifieds in Australia, with a distinct advantage in all the key performance fundamentals of traffic, time on site, inventory and brand preference. We are delivering significantly more value to our commercial and consumer customers, which in turn has translated into positive financial outcomes for our business.
“As mobile devices have become the primary tool to access our services, we continue to invest in mobile and app technology. This focus is reflected in the release of our Autogate application for dealers, the introduction of SMS lead delivery technology, as well as the implementation of codeless calling on mobile devices.”
“Our people remain our most important asset and it was pleasing to be awarded White Ribbon Accreditation and WGEA employer of choice for gender diversity during the year. We also recorded our highest ever employee engagement result.
“carsales’ culture of innovation was formally recognized with our Artificial Intelligence program ‘Cyclops’ winning ‘Best Internal Innovation’ at the recent AFR innovation awards,” he stated. McIntyre also said: “it was pleasing to see Stratton return to revenue growth in FY18 following the
challenges it faced in FY17.
“While the Stratton business still faces uncertainty over the next 12 months with ASIC finance regulation changes and the potential industry impacts from the Financial Services Royal Commission, we are confident it has the right strategy in place to achieve long term success,” McIntyre said.
“Our domestic core business performance in July has remained solid. We expect our domestic adjacent businesses to continue to build scale and complement this growth similar to FY18. We also expect our premium listing and depth products to continue to grow
“We anticipate revenue, EBITDA and NPAT growth will remain solid in the domestic core business. Assuming market conditions are stable, we also anticipate a solid performance in our Finance and Related Services business.”
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