Two of Australia’s leading internet classifieds business, REA Group and CarSales, have recorded strong profits for the first half of financial year 2010.   

On Wednesday CarSales announced it had recorded a 51% increase in profit, with post-tax earnings rising from $12.72 million (US$11.3 million) to $19.06 million and has revised its forecasted earnings upwards for the remainder of the year.

It was the first time CarSales has released figures since listing on the Australian Stock Exchange in September 2009 and CEO Greg Roebuck was understandably upbeat.

“Our first-half revenue results are strong and reflect the consumer’s preference for buying and selling online as well as improving performances in the retail automotive sector,” he said on releasing the results.

It seems that the market expected even more from one of Australia’s star classifieds performers. The announcement sent the company’s stock price down by almost two per cent to $4.85 – but still well above the $3.50 float price.

Meanwhile REA Group’s stock price jumped more than three per cent to $10.60 after it announced a net profit of $23.1 million. The stock price had lifted another three per cent the day prior to the announcement in anticipation of strong results.

REA’s profits lifted 76 per cent from the first half of financial year 2009 with revenues rising by 13 per cent and EBIDTA by 42 per cent.

You can read more about REA’s results here.

And more about CarSales here.