Summary
Auto Trader's revenues jumped 8% in the year to 31 March, with pretax profits rising 15% to £242.2m. The figure includes an £8.7m gain from selling nearly half its stake in Smart Buying. The number of cars listed on the site increased 2% to 461,000, driven mainly by professional sellers and new car sales.
Manufacturer and agency advertising spend rose 18%, but revenues from individuals selling used vehicles fell 7% to £20.1m, hit by lack of older car supply and increased competition. The company expects slower growth ahead as manufacturing sector challenges reduce customer advertising budgets.
Auto Trader's share price has climbed from 354p a year ago to 587.4p, reflecting investor confidence in the business model. The online marketplace dominates its sector with the most visited website and largest car listings, giving it pricing power with retailers, though analysts warn further revenue growth will depend on upselling additional services in a tougher market.
Read the full story at Manchester Evening News
This is a summary written for the Manchester Business Services register. The full article belongs to Manchester Evening News — read it at source.
Common questions
- What is this article about?
- Auto Trader reported revenues up 8% to the year ending 31 March, with pretax profits soaring 15% to £242.2m, as the online car marketplace outperformed a contracting sector. The Manchester-based company warned growth will slow next year as manufacturing challenges reduce advertising spend from manufacturers and agencies.
- When was this published?
- This article was published on 6 June 2019.
- Who published this article?
- This article was published by Manchester Evening News.