Auto Trader H1 profit and revenue rise; FY expectations backed

(Sharecast News) - Car marketplace Auto Trader posted a rise in first-half profit and revenue on Thursday as it backed its expectations for the year.
In the six months to the end of September, pre-tax profit increased 12% to £127.7m on revenue of £186.7m, up 6% on the first half of last year.

Average revenue per retailer (ARPR) per month was up 7% to £1,951, with growth from product and price offsetting a small but expected fall in paid retailer stock.

Cross platform visits were up 4% to 51.2 million, the operating margin improved to 70% from 68% and the interim dividend was lifted to 2.4p a share from 2.1p.

Auto Trader said it saw stronger-than-expected revenue growth from retailers, underpinned by product innovation. ARPR growth is expected to continue, albeit with a slightly increased headwind from stock, it said.

Chief executive officer Trevor Mather said: "We have had a good first half and have seen an even greater number of car retailers opting to partner with Auto Trader to access our growing consumer audience.

"We continue to be the clear market leader in used cars and have extended this into new cars, with over 30,000 brand new cars on Auto Trader being viewed by 1.6 million people in September alone."

The company said it was confident of meeting its growth expectations for the year "despite ongoing market uncertainty".