Auto Trader’s revenue revved up in the first half as their extensive partnership base helped raise sales.
Average revenue per retailer rose to £205 to £2,404 while the number of forecourts rose to 2% to 14,161.
The forecourt strength was dampened slightly by lower activity on their digital platforms by car buyers which fell 10% to 67.7 million per month in the first half of the 2023 FY1. Visitor minutes were also down.
Nonetheless, Auto Trader revenue for the period rose 16% to £249.8m.
There was a warning of uncertainty but Auto Trader pointed to the less cyclical nature of second hand cars as a reason to be positive.
“Auto Trader is accelerating into the second half with excellent momentum. Performance in the first half saw revenues and profits come in better than expected, which is a function of Auto Trader’s enviable recurring revenue, strong pricing power and highly profitable model,” said Sophie Lund-Yates, Equity Analyst at Hargreaves Lansdown.
“Running a website doesn’t cost a lot, after all. Underlying operating margins north of 70%, with strong conviction that these can be maintained, are an asset very hard to find in the current environment.”