Carsales.com Ltd (ASX:CAR) released its full year FY15 results today, reporting growth in both revenue and profits.
For the full financial year the company generated total operating revenue of $311.8 million, up 32 per cent on the previous year. The company also reported EBITDA of $154.3 million, up 12 per cent on the previous year.
The company has experienced growth in cash on hand and as a result the Board of Directors declared a total fully franked dividend of 19.1 cents per share. This represents an increase of 10 per cent on the previous corresponding period and is to be paid on 15 October 2015, with a record date of 18 September 2015.
CEO and Managing Director, Greg Roebuck said “2015 was another year full of challenges for the Australian economy and we are pleased we were able to once again deliver a record result to shareholders.”
The company recorded several promising figures including:
Strong revenue growth from Brazil and South Korean international investments
Core domestic business continuing to perform well overall with revenue up 7 per cent
Strong growth of Data, research and Services up 14 per cent year on year
Dealer revenue performing well up 7 per cent year on year
Increased private seller revenue up 8 per cent year on year
Stratton Finance, acquired in July 2014, performing ahead of expectations
Solid increase in vehicle sales for both dealer and private seller vehicles.
“Our domestic core business revenue and EBITDA have continued to perform well throughout the year and have been very well supported by our new business initiatives and the very strong performance of our Finance and Related Services division. Consumer buying activity on the carsales.com.au site was particularly strong through the second half of the year, which is reflected in the higher sales volumes for our private seller customers”, said Mr Roebuck.
Carsales have experienced mostly sideways movement in its stock price over the last twelve months. Following the results announcement this morning the company’s stock price declined significantly, however recovered somewhat and finished the day down approximately 6.5 per cent. The decline is largely due to results being below investor’s expectations. Additionally the company has seen a small decline in EBITDA margin due to increased operating expenses and a small decline in cash conversion from operating cash flow. Overall the results appear promising however cash conversion is crucial and will require attention if the company is to remain strong.
Author: Ben Visser
Aug 12, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.