Cameron McIntyre

CARSALES has posted a record 2018 financial year with after tax profit up 69 per cent to $185 million on strong contributions from its core business and also from growth in other divisions including its online tyre retailer, Tyresales.

During the year Carsales mopped up its outstanding shares in South Korean online car classified company SK Encar and Brazil-based Webmotors, which had revenue growth in the past year of 17 per cent and 28 per cent respectively.

The Carsales group revenue for the 2018 financial year was $444 million, up 19 per cent. The Australian contribution was up 12 per cent on the previous year, notably pushed by private sales revenues (up 21 per cent) and finance services that rose 24 per cent.

International revenue was up 54 per cent from South Korea, Brazil, Chile, Argentina and Mexico.

Carsales’ CEO Cameron McIntyre said the company “continued to be the clear market leader in auto classifides in Australia”.

“As mobile devices have become the primary tool to access our services, we continue to invest in mobile and app technology,” he said.

“The 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.”

The Australian outlook is solid, according to Mr McIntyre who also expects similar growth in the current financial year as that reported in the 2018 year.

“We anticipate revenue, earnings (EBITDA) and net profit after tax growth will remain solid in the domestic core business,” he said.

“Assuming market conditions are stable, we also anticipate a solid performance in our finance and related services business.”

Mr McIntyre said it was “pleasing” to see its 50.1 per cent owned Stratton finance business return to revenue growth in the year following the changes to the F&I industry.

“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,” he said.

Carsales’ overseas businesses are expected to post strong contributions from South Korea and Brazil, although Mr McIntyre said the latter’s results were dependent on “market conditions remaining stable”.

By Neil Dowling