The “transformative acquisitions” of Trader Interactive in the U.S. and WebMotors in Brazil helped drive what Car Group CEO Cameron McIntyre called an “excellent first half of the financial year.”

The Australia-based company, which changed the name of its holding company in November, posted revenue growth of 60% year on year (y-o-y) to A$531 million ($346 million) in the six months to December 2023 (H1 FY2024). EBITDA increased by 56% to A$277 million ($181 million U.S.) in the same period.

“With the completion of the acquisitions of Trader Interactive and WebMotors last year, we have accelerated our growth strategy and are executing on our key priorities across the group,” McIntyre said in an earnings call.

“We have achieved double-digit revenue and earnings growth in all of our key markets, demonstrating the strength of our business model as customers continue to prioritize our premium advertising products in a more challenging macro environment.”

In Australia, CarSales increased its revenue by 13% y-o-y to A$214 million amid strong growth across all segments. The media segment performed especially well — a 22% uplift in revenue to A$34.5 million — due to the introduction of new products and diversification into non-automotive categories.

Trader Interactive in the U.S. increased revenue by 18% to A$137 million due to the introduction of dynamic pricing, as well as the increased penetration of depth products and a growing customer base.

Encar, which is not pursuing an IPO anytime soon, grew revenue by 13% to A$56.7 million through the continued expansion of its Guarantee inspection product, which is now used by 48% of all listings on the site. The company’s Home Delivery (digital auto retail) transaction volumes increased by 27% in the period.

But it was in Brazil, where WebMotors said it delivered an “outstanding financial performance,” increasing revenue by 40% to A$83.7 million. The company attributed the result to its ongoing expansion into key markets outside San Paulo and Rio de Janeiro, which saw the acquisition of new dealer customers and increased lead volumes. The introduction of dynamic pricing, increased depth penetration and improved credit application processes also contributed to the result, the company noted.

“Our financial results reflect the significant progress that has been made in delivering our key strategic priorities and the resilience of our business through economic cycles,” McIntyre said.

The company continued the roll-out of digital retail in Australia, launching finance and trade-in integrations for its Select product. In Brazil, the company launched a new digital loan application process, while it made “good progress” with its digital retail experience at Trader Interactive’s CycleTrader site.

“The excellent momentum we have built heading into the second half provides confidence in our ability to deliver another year of great results for our shareholders,” McIntyre said.

Related Articles