CAR Group Accelerates Growth with 9% Revenue Rise in H1 FY25
CAR Group has reported robust half-year results for FY25, showcasing strong revenue, EBITDA, and profit growth across its global digital automotive marketplaces. The company’s strategic investments and market leadership underpin its optimistic outlook for continued expansion.
- Proforma revenue up 9% to $548 million
- Adjusted NPAT increased 9% to $177 million
- Strong segment growth in Latin America and North America
- Robust cash flow with 95% EBITDA to cash conversion
- Interim dividend raised by 12% to 38.5 cents per share
Strong Financial Performance Across the Board
CAR Group Limited (ASX: CAR) has delivered a solid set of half-year results for the six months ended December 31, 2024, reinforcing its position as a global leader in digital automotive marketplaces. The company reported proforma revenue of $548 million, marking a 9% increase on the prior corresponding period (pcp), alongside a 9% rise in adjusted net profit after tax (NPAT) to $177 million. These results reflect consistent growth momentum supported by strategic investments and operational excellence.
Proforma EBITDA rose 9% to $302 million, maintaining a healthy margin of 55%, while reported NPAT increased 5% to $123 million. The company’s adjusted earnings per share climbed to 47 cents, up 9%, underpinning a 12% increase in the interim dividend to 38.5 cents per share, which will be 50% franked.
Segment Highlights: Latin America and North America Lead Growth
CAR Group’s diversified portfolio spans Australia, North America, Latin America, and Asia, with international markets contributing 57% of group revenue. Latin America delivered outstanding growth with a 30% increase in constant currency revenue to $97 million, driven by national expansion of webmotors, premium product adoption, and a 34% surge in finance revenue through improved credit availability and streamlined loan processes with Santander.
North America also showed resilience amid cyclical headwinds in recreational vehicle markets, posting an 8% revenue increase to $148 million. Growth was fueled by enhanced dealer value propositions, media segment expansion, and adoption of premium depth products, positioning the business well for future market recovery.
Operational Excellence and Innovation
Operational metrics underscore CAR Group’s marketplace strength, with 2.4 million vehicles online, 49,000 subscribed dealers, and 634 million page views across key markets. The company continues to invest in digitising vehicle transactions, seamless finance integration, and AI-driven consumer experiences. Notably, the launch of C2C payments through carsales has processed $30 million in transactions within four months, enhancing buyer and seller convenience.
CAR Group’s media expansion strategy is gaining traction, particularly in the US, where direct media revenue surged 145% in H1 FY25. The in-house media agency and programmatic advertising capabilities are diversifying revenue streams beyond traditional automotive advertising.
Robust Balance Sheet and Cash Flow Support Growth
The company’s strong cash flow profile is reflected in a 95% EBITDA to cash conversion rate and a prudent leverage ratio of 1.8x net debt to EBITDA. Capital expenditure remains focused on growth initiatives including C2C payments, media technology, and branch expansions, particularly in South Korea and Latin America.
Outlook: Confident Growth Amid Market Dynamics
Looking ahead, CAR Group expects continued growth in proforma revenue, EBITDA, and adjusted NPAT on a constant currency basis for FY25, with stable EBITDA margins. The company anticipates solid dealer and private segment growth in Australia, robust media and finance revenue expansion internationally, and ongoing investment in product innovation and market leadership.
While macroeconomic conditions and competitive pressures remain factors to monitor, CAR Group’s diversified global footprint and technology-driven approach position it well to capture emerging opportunities in the evolving automotive digital marketplace landscape.
Bottom Line?
CAR Group’s H1 FY25 results confirm its growth trajectory and resilience, setting the stage for further market leadership and innovation-driven expansion.
Questions in the middle?
- How will CAR Group navigate potential macroeconomic headwinds in North America and Latin America?
- What impact will further AI and digital retailing innovations have on customer acquisition and retention?
- How might evolving competitive dynamics in international markets affect CAR Group’s market share and margins?
