CAR Group Boosts Revenue 9% and Declares 38.5c Interim Dividend
CAR Group Ltd reported a robust half-year performance for the period ending December 31, 2024, with revenue up 9% and profit growth across all key markets. The company declared a 38.5 cents per share interim dividend, underscoring its strong financial position and confidence in future growth.
- Revenue increased 9% to $579.4 million
- Adjusted net profit rose 9% to $123.5 million
- Interim dividend declared at 38.5 cents per share, 50% franked
- Strong growth across Australia, North America, Latin America, and Asia
- Net debt to EBITDA leverage ratio maintained at a healthy 1.8 times
Strong Half-Year Financial Performance
CAR Group Ltd has reported a solid financial performance for the half year ended 31 December 2024, with revenue climbing 9% to $579.4 million compared to the prior corresponding period. Adjusted net profit attributable to members also grew by 9% to $123.5 million, reflecting the company’s effective operational execution and diversified revenue streams.
The company’s reported net profit after tax increased by 5% to $131.1 million, while earnings per share rose to 32.7 cents, up from 31.1 cents in the previous period. Adjusted earnings per share, which exclude certain non-recurring and non-cash items, improved to 47.0 cents, highlighting underlying profitability gains.
Geographic and Segment Growth Drivers
CAR Group’s growth was broad-based across its key markets. In Australia, online advertising revenue and adjusted EBITDA grew 9%, driven by increased dealer lead volumes, dynamic pricing optimisation, and expansion of media products. The Data, Research & Services segment also posted a 5% revenue increase, supported by strong customer acquisition in the Redbook data business.
Internationally, North America delivered a resilient 9% revenue and EBITDA growth despite challenging market conditions. Latin America stood out with a remarkable 30% revenue increase and 34% EBITDA growth, fueled by national expansion and new product depth. Asia’s revenue rose 15%, led by the Encar business in South Korea, with premium product penetration and home delivery transactions contributing to a 12% EBITDA uplift.
Financial Position and Capital Management
The Group’s financial position remains robust, with net tangible assets backing per ordinary share improving to 579.4 cents. Leverage is well controlled, with a net debt to EBITDA ratio of 1.8 times, reflecting prudent capital management. Cash conversion remains strong, with a 95% EBITDA to cash conversion ratio, underscoring efficient working capital management.
During the period, CAR Group successfully refinanced its syndicated revolving loan facility, extending the tenor to August 2028 without changing the facility size. The company also maintains US Private Placement notes with fixed interest rates, providing a balanced debt maturity profile.
Dividend Declaration and Shareholder Returns
Reflecting confidence in its ongoing performance, CAR Group declared an interim dividend of 38.5 cents per share, 50% franked, payable on 14 April 2025. This follows a final dividend of the same amount paid in October 2024, marking a consistent and shareholder-friendly dividend policy. The Dividend Reinvestment Plan remains available to eligible shareholders, offering an option to increase holdings without dilution.
Outlook and Strategic Focus
Looking ahead, CAR Group expects continued growth in proforma revenue, EBITDA, and adjusted net profit on a constant currency basis for the full fiscal year 2025. The company anticipates maintaining its EBITDA margins while driving growth across dealer, private, and media segments in Australia, alongside solid international expansion.
Management highlights ongoing investments in product innovation, geographic expansion, and operational efficiency as key drivers for sustainable growth. The company’s diversified business model and strong balance sheet position it well to navigate evolving market conditions.
Bottom Line?
CAR Group’s strong half-year results and confident dividend signal a company well-positioned for sustained growth amid global market complexities.
Questions in the middle?
- How will CAR Group manage potential currency fluctuations impacting its international revenue?
- What are the strategic priorities for further expanding the Latin American and Asian markets?
- How might evolving digital advertising trends affect CAR Group’s revenue mix and margins?