Auto Trader Revenue Rises, Anticipates Another Year of Strong Progress

On Thursday, Auto Trader Group (LON: AUTO), the leading UK car marketplace, announced a 14% increase in group revenue to £570.9 million for the fiscal year ending March 31, 2024.

The company also reported a 26% rise in operating profit to £348.7 million, driven by double-digit growth across all segments and an expanded operating profit margin of 71%.

Auto Trader's core business thrived despite a challenging new car retail market.

Average revenue per retailer (ARPR) grew by 12%, bolstered by the adoption of additional products and services. The launch of Auto Trader Connect's second module further enhanced retailer capabilities, contributing to this growth.

With record numbers of buyers and sellers using its platform, Auto Trader said its competitive position strengthened, making it ten times larger than its nearest competitor.

While the new car market faced difficulties and increasing discounting, the used car market remained robust, with cars selling faster than pre-pandemic levels.

The company's Deal Builder product, part of its digital retail strategy, saw significant uptake, with approximately 1,100 retailers onboarded by March 2024. This product allows buyers to value part-exchanges, apply for finance, and reserve cars online, aligning with Auto Trader's vision of moving more car-buying processes online.

Looking ahead, Auto Trader anticipates continued ARPR growth and operational progress, supported by a solid start to the new financial year. The company returned £250.3 million to shareholders and proposed a final dividend of 6.4p per share, reflecting confidence in its future prospects.