Carsales.com speeds ahead to $109 million profit

AAP

9th Aug 2016

Online advertiser Carsales.com has recorded a strong 12 months, posting a six per cent rise in full-year net profit to $109 million.

The company has also lifted revenue 10 per cent from last year, to $344 million, thanks to a strong Australian market and solid performances by its international business including its newly acquired Mexican and Chilean operations.

“We need to be a world platform rather than an Australian platform,” Carsales.com chief executive Greg Roebuck said.

In the 12 months to June 30, the company added car inspection service Redbook Inspect and invested in an online payment system in a move to boost services for customers.

Although there had been a slight drop in overall traffic to the company’s desktop sites, the real value was in targeting real customers rather than pulling in people simply browsing on the internet, Roebuck said.

The online advertising market remained extremely competitive, but Roebuck said he was confident the company could meet the challenges.

“From day one we have competed with the biggest companies in Australia, it’s just part of our DNA to do a good job,” he said.

At 1100 AEST Carsales.com shares were down 41 cents; or 3.3 per cent to $11.96.