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Carsales continues to drive profits

Carsales.com (ASX: CRZ) saw net profit after tax (NPAT) for FY2013 rise 17% to $83.5 million today. Total revenue for the year was $215.1 million, an increase of 17%. Earnings per share of 35.5 cents were up 16% on the prior year and the business declared a final dividend of 15.6 cents per share, bringing total dividends for FY2013 to 28.3 cents per share.

In FY2013 the company acquired a 19.9% equity interest in iCar Asia (ASX: ICQ) an operator of automotive websites in Malaysia, Thailand and Indonesia. Its classified sites there are numbers 1 or 2 in the markets they occupy. In June it acquired a 30% equity interest in Webmotors SA, the largest automotive website in car crazy Brazil, a country with a population over 200 million. All are high growth markets where Carsales will look to leverage its expertise.

The business has acknowledged its intention to build on its overseas investments in the coming 12 months. Australia remains the key market, where its websites continue to grow overall site traffic and connect to the growing trend of mobile traffic in the consumer market.

Foolish takeaway

The shares are approaching all-time highs and the long-term potential looks good. Its Australian businesses have developed a competitive advantage and there appears plenty of potential for further growth at home and abroad.

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Motley Fool contributor Tom Richardson does not own shares in any of the companies mentioned in this article.

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