Shares in Carsales.com have surged to a record high after the online auto classified group posted a leap in full-year profit as its overseas expansion strategy delivered an earnings boost.
Carsales.com posted a 69 per cent jump in full-year profit to $185 million for the year to June 30, while revenue rose 19 per cent to $444 million with help from acquisitions in South Korea and Mexico.
The result drove Carsales shares to an all-time high, up $1.37, or 9.4 per cent to $16.025 at 1241 AEST.
CEO Cameron McIntyre labelled it “an excellent year” as the business continued its overseas expansion.
“We are delivering on our international growth strategy with the acquisition of the remaining stakes in SK Encar, our South Korean business, and soloautos, our Mexican businesses, where there is significant long-term growth potential,” he said in a statement.
In Australia revenue for the year rose 12 per cent to $405.9 million, with revenue from private advertisers in the used car market up by 21 per cent to $78.9 million.
Dealer revenue rose by eight per cent to $143.9 million.
Offshore the acquisition of SK Encar added $26 million to revenue, fuelling a year-on-year increase from $8.3 million to $38.1 million.
Excluding the Encar contribution international revenue rose 44 per cent.
Looking to the current year, Carsales said it expects domestic revenue, earnings and profit “will remain solid”, while it was expecting strong earnings growth in Brazil if market conditions remain stable.
The group flagged continuing investment in technology and marketing in Chile, Mexico and Argentina but said it expected continuing improvement in revenue.
The company declared a final dividend of 23.7 cents a share, up 2.2 cents from a year earlier.
CARSALES CLICKS ON A WINNING YEAR
* 2017/18 net profit up 68.8pct to $184.8m
* Revenue up 19.3pct to $444m
* Final dividend 23.7 cents, fully franked, up from 21.5 cents