Auto Trader Group: Revenue Rises, Guidance Reaffirmed

Auto Trader Group (LON: AUTO) has announced its half-year results for the six months ended September 30, 2025, showcasing a period of solid growth and strategic advancement.

The company reported a 5% increase in Group revenue and a 6% rise in Group operating profit, with Basic Earnings Per Share (EPS) increasing by 11%. Core Autotrader revenue and operating profit also saw a 5% increase, while losses from Autorama were halved year-on-year, signaling progress in that segment.

Retailer revenue experienced a 6% growth, driven by a 1% increase in the number of retailer forecourts and a 5% rise in Average Revenue Per Retailer (ARPR).

The company attributes much of this ARPR growth to its annual pricing and product event on April 1, 2025. Auto Trader highlighted that faster stock turn resulted in slightly lower prominence penetration and paid stock year-on-year, impacting ARPR growth compared to its long-term average.

A key development during the period was the launch of Co-Driver, a generative AI product designed to help retailers create high-quality vehicle listings more efficiently. Auto Trader sees significant potential in AI to enhance performance, efficiency, and time-saving for its customers. The company intends to leverage AI tools to improve visibility on organic search platforms, where 18% of buyers currently find them.

Auto Trader is actively scaling Deal Builder to become a core consumer proposition. The company added approximately 2,000 retailers to the platform in the first half of the year, bringing the total to over 4,000. This acquisition rate is four times greater than in the preceding six months, indicating strong momentum.

The used car market remains robust, with Auto Trader reporting record levels of cross-platform visits and high engagement. The number of cars advertised on the site also increased, partly due to a stock offer during the early part of the financial year. Within the trade segment, unique cars sold increased by 2%, slightly outpacing the underlying growth in the average number of used cars live on the site.

Headline Numbers:

• Revenue: Group revenue increased by 5% to £317.7 million, compared to £302.5 million in H1 2025.
• Profit & Margins: Group operating profit rose by 6% to £200.1 million. The Autotrader operating profit margin remained steady at 70%, while the Group operating profit margin increased by 1 percentage point to 63%.
• Cash & Balance Sheet: Cash generated from operations increased by 7% to £215.4 million. The company has returned £162.2 million to shareholders through share buybacks and dividends.

Auto Trader's commitment to returning value to shareholders is evident through its increased share buybacks and dividends. The company declared an interim dividend of 3.8 pence per share, up from 3.5 pence per share in H1 2025. This reflects confidence in the company's financial performance and future prospects.

Nathan Coe, Chief Executive Officer of Auto Trader, said: “In 2025, we continued our decade-long journey of creating AI-powered products that improve the buying and selling experience on Autotrader and help drive improved performance, efficiency and time-saving for our customers. This year, over 10,000 of our customers have used our Co-Driver product to deliver over 1 million improved vehicle adverts, enhancing the buying journey.”