Auto Trader Group, a London-listed digital automotive marketplace, has announced an impressive increase in pretax profit and revenue due to strong performance in its core business. The company recorded a record number of buyers during the half year ended September 30.
- Pretax profit for the half year ended Sept. 30 was £162.8 million ($200.0 million), up from £148.0 million the previous year.
- Revenue increased to £280.5 million from £249.8 million.
Auto Trader Group saw a significant rise in monthly average revenue per retailer per month, which increased from £2,404 to £2,683 on average per month. This increase can be attributed to various factors including pricing strategies and product offerings.
The board of Auto Trader Group declared an interim dividend of 3.2 pence per share, showing an increase from the previous year’s dividend of 2.8 pence per share.
Resilience in the Used Car Market
Despite the challenges posed by the pandemic, Auto Trader Group remains confident in the resilience of the used car market. The company reported that the volume of buyers has reached record levels, supported by stable consumer sentiment towards car buying and the availability of financing options.
Positive Market Dynamics
As new car registrations have grown, there has been a gradual improvement in used car supply. Additionally, used car pricing has remained robust, contributing to the overall strength of the market. Interestingly, vehicles on the Auto Trader site continue to sell faster than pre-pandemic levels.
Outlook for the Future
Looking ahead, Auto Trader Group is optimistic about the second half of the year and expects another year of retailer revenue growth. The company also anticipates an increase in group margins compared to the previous year.