13th Nov 2015 07:22
LONDON (Alliance News) - Auto Trader Group PLC proposed a maiden interim dividend and reiterated confidence in meeting its expectations for its full financial year, as it reported a sharp jump in pretax profit in the first half due to a significant reduction in finance costs.
The digital automotive marketplace operator proposed a maiden interim dividend of 0.5 pence following its listing on the London Stock Exchange in March.
For the half year to end-September, Auto Trader reported a pretax profit of GBP74.7 million, multiplying from GBP13.1 million a year before, as revenue rose to GBP138.2 million from GBP127.5 million. The leap in profit was primarily the result of a GBP46.2 million reduction in finance costs as Auto Trader benefited from a lower level of debt than under its previous private ownership, and with that debt less expensive.
Revenue growth was driven by a strong performance in retailer revenue, as well as 23% growth in display advertising revenue. Average revenue per retailer forecourt per month was up 9% to GBP1,347, compared to GBP1,237 a year before.
"Auto Trader has delivered a strong first half performance, as retailers, consumers and manufacturers alike are increasingly recognising the value of our marketplace," said Chief Executive Trevor Mather in a statement.
"We believe there is substantial opportunity to grow the business based on the increasing importance of the internet for automotive advertising, and the growing use of data to improve the efficiency and effectiveness of the industry," Mather added.
Auto Trader will announce its full-year results for the year to March 27, 2016 on June 9, 2016.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
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