Latest news with #autotrader
Yahoo
3 days ago
- Automotive
- Yahoo
Auto Trader Group PLC (ATDRF) Full Year 2025 Earnings Call Highlights: Strong Revenue and ...
Group Revenue Growth: 5% increase. Operating Profit Growth: 8% increase. Basic EPS Growth: 12% increase. Core Auto Trader Revenue Growth: 7% increase. Retailer Revenue Growth: 7% increase. Average Revenue Per Retailer (ARPR): 5% increase to GBP 2,854. Cash Returned to Shareholders: GBP 275.7 million through share buybacks and dividends. Final Dividend: 7.1p per share, total dividends 10.6p per share, up 10%. Operating Profit Margin: Group margin at 63%, Auto Trader margin at 70%. Cash Generated from Operations: 5% increase. Average Number of Retailer Forecourts: Up 2% to 14,013. Live Car Stock: Up 1% to 449,000. Autorama Revenue: GBP 36.3 million. Autorama Operating Loss: GBP 4.3 million. Net Profit Before Tax: GBP 375.7 million, 9% increase. Effective Tax Rate: 25%. Net Bank Debt: Reduced to nil. Warning! GuruFocus has detected 2 Warning Sign with ATDRF. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Auto Trader Group PLC (ATDRF) reported a 5% increase in group revenue, with Auto Trader revenue specifically growing by 7%. Operating profit grew by 8%, demonstrating strong operating leverage and effective capital policy application. The company successfully launched its Co-Driver AI product suite, which has seen strong engagement from both retailers and consumers. Auto Trader's platform strategy is robust, with over 1 billion calls to data services, benefiting more than 90% of retailer customers. The Deal Builder product saw an 82% increase in customer numbers, significantly boosting the number of deals generated. The acceleration in the speed of vehicle sales negatively impacted revenue growth, which could have been higher without this factor. Used car prices fell during the year, affecting retailer profitability despite strong consumer demand. The digital services tax impacted Auto Trader's operating profit margin, which contracted slightly. Revenue from Manufacturer and Agency customers decreased by 8% year-on-year. Autorama, a segment of the business, reported an operating loss of GBP 4.3 million, although this was a reduction from the previous year. Q: With the April '26 pricing event approaching, how will Auto Trader handle accelerated stock turn, and what products will be bundled in the event? A: Nathan Coe, CEO, explained that while the event is some time away, they consider retailer profitability and stock turn when planning. They are not planning to change their business model but may consider pricing adjustments if stock turn remains fast. The event will likely focus on Deal Builder, with no major additional products, to ensure effective implementation and engagement. Q: Can you provide more details on the FY26 stock ARPR guidance and the medium-term Deal Builder monetization plans? A: Jamie Warner, CFO, stated that the stock offer conversion is expected to align with historical rates, and they anticipate a small negative impact on stock lever. Catherine Faiers, COO, noted that Deal Builder will be a baseline version initially, with potential for future monetization through additional features like finance products. Q: What are the expectations for retailer gross margins, and how does Autorama fit into the strategy with new private sales growth? A: Catherine Faiers, COO, mentioned that retailer gross margins have been under pressure due to narrowing trade-retail price gaps and softer finance penetration. Nathan Coe, CEO, added that Autorama's focus is on leveraging the Auto Trader platform for growth, with plans to reduce reliance on balance sheet transactions. Q: How does Auto Trader view competitive threats, and what differentiates its position in the market? A: Catherine Faiers, COO, emphasized that Auto Trader's brand, consumer relationships, and data depth are key differentiators. They focus on maintaining strong marketplace foundations and leveraging proprietary data to enhance consumer and retailer experiences, which positions them well against both traditional and emerging competitors. Q: With Deal Builder becoming part of core packages, will there be additional marketing efforts, and are there plans for standalone AI products? A: Catherine Faiers, COO, indicated that while they won't significantly increase marketing spend, they will enhance Deal Builder's prominence on the platform. Regarding AI, there are opportunities to develop standalone products within their existing streams, potentially targeting specific customer segments for validation and monetization. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
3 days ago
- Automotive
- Yahoo
Auto Trader Group PLC (ATDRF) Full Year 2025 Earnings Call Highlights: Strong Revenue and ...
Group Revenue Growth: 5% increase. Operating Profit Growth: 8% increase. Basic EPS Growth: 12% increase. Core Auto Trader Revenue Growth: 7% increase. Retailer Revenue Growth: 7% increase. Average Revenue Per Retailer (ARPR): 5% increase to GBP 2,854. Cash Returned to Shareholders: GBP 275.7 million through share buybacks and dividends. Final Dividend: 7.1p per share, total dividends 10.6p per share, up 10%. Operating Profit Margin: Group margin at 63%, Auto Trader margin at 70%. Cash Generated from Operations: 5% increase. Average Number of Retailer Forecourts: Up 2% to 14,013. Live Car Stock: Up 1% to 449,000. Autorama Revenue: GBP 36.3 million. Autorama Operating Loss: GBP 4.3 million. Net Profit Before Tax: GBP 375.7 million, 9% increase. Effective Tax Rate: 25%. Net Bank Debt: Reduced to nil. Warning! GuruFocus has detected 2 Warning Sign with ATDRF. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Auto Trader Group PLC (ATDRF) reported a 5% increase in group revenue, with Auto Trader revenue specifically growing by 7%. Operating profit grew by 8%, demonstrating strong operating leverage and effective capital policy application. The company successfully launched its Co-Driver AI product suite, which has seen strong engagement from both retailers and consumers. Auto Trader's platform strategy is robust, with over 1 billion calls to data services, benefiting more than 90% of retailer customers. The Deal Builder product saw an 82% increase in customer numbers, significantly boosting the number of deals generated. The acceleration in the speed of vehicle sales negatively impacted revenue growth, which could have been higher without this factor. Used car prices fell during the year, affecting retailer profitability despite strong consumer demand. The digital services tax impacted Auto Trader's operating profit margin, which contracted slightly. Revenue from Manufacturer and Agency customers decreased by 8% year-on-year. Autorama, a segment of the business, reported an operating loss of GBP 4.3 million, although this was a reduction from the previous year. Q: With the April '26 pricing event approaching, how will Auto Trader handle accelerated stock turn, and what products will be bundled in the event? A: Nathan Coe, CEO, explained that while the event is some time away, they consider retailer profitability and stock turn when planning. They are not planning to change their business model but may consider pricing adjustments if stock turn remains fast. The event will likely focus on Deal Builder, with no major additional products, to ensure effective implementation and engagement. Q: Can you provide more details on the FY26 stock ARPR guidance and the medium-term Deal Builder monetization plans? A: Jamie Warner, CFO, stated that the stock offer conversion is expected to align with historical rates, and they anticipate a small negative impact on stock lever. Catherine Faiers, COO, noted that Deal Builder will be a baseline version initially, with potential for future monetization through additional features like finance products. Q: What are the expectations for retailer gross margins, and how does Autorama fit into the strategy with new private sales growth? A: Catherine Faiers, COO, mentioned that retailer gross margins have been under pressure due to narrowing trade-retail price gaps and softer finance penetration. Nathan Coe, CEO, added that Autorama's focus is on leveraging the Auto Trader platform for growth, with plans to reduce reliance on balance sheet transactions. Q: How does Auto Trader view competitive threats, and what differentiates its position in the market? A: Catherine Faiers, COO, emphasized that Auto Trader's brand, consumer relationships, and data depth are key differentiators. They focus on maintaining strong marketplace foundations and leveraging proprietary data to enhance consumer and retailer experiences, which positions them well against both traditional and emerging competitors. Q: With Deal Builder becoming part of core packages, will there be additional marketing efforts, and are there plans for standalone AI products? A: Catherine Faiers, COO, indicated that while they won't significantly increase marketing spend, they will enhance Deal Builder's prominence on the platform. Regarding AI, there are opportunities to develop standalone products within their existing streams, potentially targeting specific customer segments for validation and monetization. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
The Independent
5 days ago
- Automotive
- The Independent
Auto Trader boss says trade war could boost new car sales into UK
The boss of Auto Trader has said the international trade war could boost new car sales into the UK if it becomes more expensive for global manufacturers to export vehicles to other countries. Chief executive Nathan Coe told the PA news agency that while increased trade friction could raise prices across the board, higher import levies could see more cars coming into the UK. He said: 'Depending on where they all (tariffs) settle, you might all find new car prices are slightly higher on a like-for-like basis. 'But the car market is very simple, it's about supply and demand. 'If you look at last year, the number of new cars sold to consumers (in the UK) actually fell and was very low by historical standards. 'So I think the UK becomes potentially a more attractive market, given all the trade wars. It has got a good market, it does buy a lot of cars. 'If it's more expensive to export those cars to other countries, it could well be the UK is a place where we find a few more new cars coming this way.' Mr Coe's comments came as Auto Trader reported that the UK's new car market grew 3% last year, but that was driven by sales of company or 'fleet' vehicles, while sales to consumers fell 4% year-on-year. He said it is 'a very different story' for the UK's car manufacturers, however, with increased export barriers meaning prices will go up and 'people will buy less of them'. It comes as the number of vehicles manufactured in the UK plunged last month to the lowest April figure for more than 70 years, amid a hit from trade tariffs and the timing of Easter. Factories turned out just 59,203 vehicles in April, the lowest figure for that month for more than 70 years excluding 2020, when Covid-19 lockdowns halted production. But the car sales market, which includes imported vehicles, is in better health, Auto Trader said on Thursday, as it saw a 5% increase in the number of cars advertised through its platform, an average of 449,000 per month through the year to the end of March. The group said it saw a 5% increase in the number of cars advertised through its platform, an average of 449,000 per month through the year. And it said consumers made a record 81.6 million visits to Auto Trader's platforms this year. Auto Trader's revenues came in at £601.1 million in the year to March 31, up 5% compared with the previous 12 months, while profit rose 8% to £376.8 million. The growth in both markets comes despite another year of high interest rates and inflation in the UK, which the company said put 'financial pressure' on customers. Mr Coe added: 'Despite broader macroeconomic uncertainties, the UK car market is in good health and we continue to deliver against our strategy to improve car buying and retailing.'
Bloomberg
6 days ago
- Automotive
- Bloomberg
FTSE 100 Live: UK Stocks Poised to Join Rally After Trump Tariff Ruling
Auto Trader has given a relatively positive update, with revenue and profit growth, while it expects sales to strengthen in the second half of the financial year. Overall it sees revenue growth of 5%-7% in the 2026 financial year. Stock levels are expected to improve through the year, though still be marginally down for 2026, after an acceleration in the speed of sale impacted the second half of 2025. The car dealer said it sees overall new car registration volume growth due to a UK/US trade deal and the UK government's plan to soften the Zero Emission Vehicle mandate. CEO Nathan Coe said: 'Despite broader macroeconomic uncertainties, the UK car market is in good health and we continue to deliver against our strategy to improve car buying and retailing.'
