Auto Trader’s Share Price Surged 8.3% on Its Upbeat H1 Profits

The Auto Trader Group PLC (LON: AUTO) share price surged 8.3% after releasing its half-year results for the six months to 30 September 2023. The company operates the UK's largest automotive marketplace and noted that its core marketplace business remained resilient, with profit margins consistently exceeding 70%.

The company reported that its core marketplace business achieved a remarkable 9% growth in revenue and a 10% increase in operating profit. The solid financial performance underscored its strong position in the market.

The entire Auto Trader Group experienced a 12% increase in total revenue and a 10% growth in Group operating profit, further reinforcing our overall strength. The company’s Average Revenue per Retailer (ARPR) grew by 12%. The growth can be attributed to the continued adoption of its additional products and services. 

The used car market has remained resilient, with record buyers on Auto Trader. Stable consumer sentiment toward car buying, the availability of finance, and improved supply of used cars due to growth in new car registrations have contributed to this resilience. 

Auto Trader has made significant progress in scaling its Deal Builder product, which allows car buyers to value their part exchange, apply for finance, and reserve cars online. Structural changes in the new car market have opened up new opportunities for the Group. 

The company returned £117.1 million to shareholders during the review period, which includes £65.8 million through share buybacks and £51.3 million in dividends. The firm declared an interim dividend of 3.2p per share for the period, reflecting its dedication to regular dividend payments and shareholder rewards.

Over 75% of all minutes spent on automotive classified sites were on Auto Trader, underscoring the firm’s market leadership.

Nathan Coe, Auto Trader’s Chief Executive Officer, said: “It has been a strong start to the year with more buyers spending more time and completing more of their car buying journey on Auto Trader. We are working in partnership with record numbers of retailers and manufacturers, who are turning to our platform as the most effective and efficient way to source, price and sell their vehicles. We remain confident in our long-term prospects given the strength of our business and the opportunities to deliver meaningful value for car buyers, customers, our people and shareholders.”

Auto Trader share price. 

The Auto Trader share price surged 8.30% to trade at 687.80p from Wednesday’s closing price of 635.10p.