Carsales.com's Strong Fiscal 2018 Performance Likely to Continue. FVE Increased to AUD 14.50.

Narrow-moat-rated Carsales.com reported a good fiscal 2018 financial result but one which was broadly in line with our expectations. Although the 19% increase in revenue was higher than our 17% forecast, EBITDA growth of 16% was lower than the 20% we expected. The result was also distorted somewhat by the change in accounting policy for SK Encar following the increase in Carsales.com's ownership to 100% from 49% in January 2018. Although the result was good, we don't believe it warranted the 10% share price jump which followed the announcement.