AAP Finance

Carsales profit drops 53.8% on impairment

By AAP Newswire

Carsales' full-year profit has dropped 53.8 per cent to $85.2 million after it incurred a previously announced $47.8 million impairment charge against its 50.1 per cent share in underperforming Stratton Finance.

The online classifieds company reported total revenue was up 10.78 per cent to $417.4 million for the 12 months to June 30, underpinned by its core Australian classifieds business performing well and investment in new products and markets.

The automotive business has begun a formal sales process of Stratton Finance following a board decision in June, saying shareholders will be kept informed as the process evolves.

"We are very pleased with the company's performance and our ability to respond to challenging market conditions in order to deliver continued growth while investing for the long term," chief executive Cameron McIntyre said on Wednesday.

Revenue was bolstered by its two largest international businesses in South Korea and Brazil, which produced local currency revenue growth of 13 per cent and 35 per cent, respectively.

Combined revenue in Chile, Mexico and Argentina was up 22 per cent on a constant currency basis.

Carsales expects a gradual recovery in the local market throughout the year supported by low interest rates, an improved lending environment and a recovering property sector.

Adjusted EBITDA for the online car marketplace rose 7.0 per cent to $210.1 million, bolstered by key revenue drivers Dealer Private and Data and Research & Services.

The company has lifted its final dividend 1.3 cents from the previous corresponding period to 25.0 cents, fully franked, while its share price rose 11.65 per cent to $15.67 at 1237 AEST.

CARSALES' FY19 RESULTS

* Total revenue up 10.78pct to $417.4m

* Profit down 53.8pct to $85.2m

* Fully franked final dividend up 1.3 cents from a year ago to 25.0 cents.