The Carsales.com Ltd (ASX: CAR) share price is in focus on Monday after the automotive classified company released its full-year earnings.
The Carsales share price closed Friday's trade at $21.65.
Carsales share price in focus amid full-year earnings
Here are the highlights of the company's FY22 results:
- $609 million of look-through revenue – a 36% jump on that of the prior corresponding period (pcp)
- $509 million of reported revenue – a 19% improvement
- Reported earnings before interest, tax, depreciation, and amortisation (EBITDA) came to $270 million – up 12%
- Reported after-tax profit of $161 million – a 23% improvement
- Earnings per share (EPS) of 56.9 cents – up 8%
- 24.5 cent fully franked final dividend – 9% more than that of the pcp
The company's revenue lifted amid a strong domestic performance from its private and media segments, its Korean Encar business, and revenue from the TyreConnect business (acquired in July 2021).
Its Australian adjusted revenue lifted 18% last financial year while its adjusted EBITDA rose 10%, excluding wage subsidies. Overseas, it delivered double-digit revenue and EBITDA growth.
The company's revenue and EBITDA lifted 11% and 16% respectively in the US, while those same metrics rose 17% and 16% respectively in South Korea.
Brazil posted the best increase, however. Carsales' revenue gained 26% in the South American nation while its EBITDA lifted 23%.
What else happened in financial year 2022?
The major news from Carsales last financial year was its acquisition of the remaining 51% stake in Trader Interactive. It underwent a capital raise to snap up the stake for approximately $1.17 billion.
The Carsales share price crashed 12% on the back of the news, released in late June.
The company also launched its Australian online buying service carsales SELECT in August 2021.
What did management say?
Carsales CEO Cameron McIntyre commented on the company's full-year earnings, saying:
Our team have worked hard to deliver an excellent operational and financial performance while continuing to deliver our strategy and invest in future growth opportunities including progressing the acquisition of the remaining 51% of Trader Interactive in the US.
We continue to see robust levels of demand in all our key markets, reflecting the strength of our market position and the resilience of marketplace businesses through economic cycles.
What's next?
Carsales didn't provide any additional guidance today. Though, it did outline its expectations for financial year 2023.
The company expects to deliver "very strong growth" in adjusted revenue and EBITDA on an actual basis this financial year.
That will likely be driven by strong underlying automotive conditions in both dealer and private markets, as well as growth in its media and investments segments.
Carsales share price snapshot
While Carsales' earnings have been on the up and up lately, its share price has struggled.
The stock is currently trading 13% lower than it was at the start of 2022. It has also fallen 5% over the last 12 months.
Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has slipped 7% year to date and 7% since this time last year.
