Auto Trader Group Posts Best Year Ever as Auto Sales Resurrect and Advertising Revenue Recovery
- Dealers spent an average of £2,210 marketing their cars with Auto Trader
- Auto Trader’s sales rose 65% year-on-year to £432.7m
- SMMT: The number of cars produced by British factories fell by 11%
Auto Trader Group delivered a record year-over-year performance thanks to a strong rebound in auto sales and much higher advertising revenue.
Total automotive sales for the year to 31 March rose 65 per cent year-on-year to £432.7 million as the recovery in motor vehicle demand led to an increase in petrol station advertisements on the platform.
These dealers spent an average of £2,210 marketing their cars with Auto Trader, an increase of £886 from the previous year when Auto Trader’s income was affected by the decision to offer free advertising to private customers for several months. to offer.
Auto Trader Group’s total sales rose 65 percent year-on-year to £432.7 million in the year to March 31 as the recovery in motor vehicle demand led to an increase in petrol station advertisements on its platform
Britons also bought fewer cars because travel restrictions discouraged them from driving.
When these rules were relaxed, Auto Trader saw the number of visits to its website increase, averaging 63.8 million per month, accounting for more than three-quarters of the auto-classification market.
This went hand in hand with the release of pent-up demand for new and used cars and a revival in advertising, although the volume of car manufacturers launched on the group’s platform declined due to shortages of the offer.
The increase in the company’s advertising revenue far outweighed rising costs, pushing pre-tax profits up 91 percent year-on-year to just over £300 million.
The Manchester-based company expects average revenue per customer to continue growing this fiscal year, albeit at a slower pace due to weakening market conditions.
Chief executive Nathan Coe said: “This year marks the best financial and operational performance in our history, which is a credit to our people and the partnerships we have with our customers.
“We are well positioned to grow our core business while developing the products retailers need to move a larger part of the auto-buying journey online, on Auto Trader.
“Despite the current high levels of economic uncertainty and changes in the industry, we are entering the year with both confidence and optimism.”
Auto Trader’s results come from figures from the UK’s leading automotive trade organization showing that the number of cars produced by UK factories fell 11 percent last month to 60,554.
The Society of Motor Manufacturers and Traders (SMMT) blamed the decline in production levels on the ongoing shortage of microchips and supply chain problems, in part due to Russia’s large-scale invasion of Ukraine.
Auto Trader Group Shares were up 1.7 percent in early trading Thursday to 575.8 pence, though their value has fallen more than 22 percent in the past six months.