Auto Trader pretax profit rises, driven by double-digit revenue growth

By Najat Kantouar

Auto Trader Group (UK:AUTO) (ATDRY)said pretax profit rose in its fiscal year, driven by double-digit revenue growth across all its segments, and that it remained confident in its prospects for the year ahead.

The London-listed digital automotive marketplace said Thursday that pretax profit for the year ended March 31 rose to 345.2 million pounds ($438.4 million) from GBP293.6 million a year earlier. This missed market consensus of GBP346.5 million based on 12 analysts' forecasts taken from Factset.

Adjusted earnings before interest, taxes, depreciation, and amortization rose to GBP375.3 million from GBP328.0 million.

Revenue rose 14% to GBP570.9 million from GBP500.2 million a year prior, ahead of consensus of GBP550.9 million, based on 13 analysts' forecasts.

Average revenue per retailer per month was up 12%, or GBP284, to GBP2,721 on average per month, driven by continued uptake of additional products and services and a successful annual pricing and product event in April 2023, Auto Trader said.

The board declared a final dividend of 6.4 pence a share, up from 5.6 pence a share in fiscal 2023, bringing the total dividend for the year to 9.6 pence a share.

For fiscal 2025, Auto Trader expects another good year of growth in average revenue per retailer across all its segments. The company expects average revenue per retailer price growth of GBP90-GBP100, product growth of GBP120-GBP130 and stock growth of GBP20-GBP40.

Operating profit margins are expected to be 69%, or 71%, excluding digital services tax. At a group level, it expects to see modest margin expansion.

Write to Najat Kantouar at najat.kantouar@wsj.com

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

05-30-24 0520ET

Copyright (c) 2024 Dow Jones & Company, Inc.