Shares in carsales.com surged after the online automotive advertising business announced a 10.78% lift in annual revenue to $417.49 million despite a drop off in ads for new cars.
At the close, the shares were up 10.9% to $15.57.
Adjusted net profit for the year to June was up 2.78% to $131.32 million.
Revenue from online advertising was up 1% to $300.1 million.
Display advertising was down 13% to $64.1 million, reflecting a subdued new car market.
But used cars drove dealer ad revenue, up 7% to $153.9 million, and private ads, up 4% to $82.1 million.
The company says it expects an improvement in display ads but market conditions are still challenging.
CEO Cameron McIntyre says the results reflect the company's ability to respond to a challenging market.
“This result is testament to the strength, resilience and diversified nature of our business, as well as our investment in new products and entry into new markets," he says.
“We continue to be the clear market leader in online auto classifieds in Australia with the largest and most engaged consumer audience."
For the rest of the year, carsales assumes a gradual recovery in Australian automotive market conditions, supported by lower interest rates, an improved lending environment, a recovering property sector and recent tax changes.
The company says it's had a "solid start" to the new financial year.
The full year numbers
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