UK's Auto Trader H1 group revenue falls, maintains 2027 operating profit guidance
UK's Auto Trader H1 group revenue falls, maintains 2027 operating profit guidance
Overview
UK automotive marketplace's H1 group revenue fell 1% yr/yr, with flat core platform revenue
Basic EPS rose 5% yr/yr, supported by a lower share count
Company returned £330 mln to shareholders via dividends and share buybacks
Outlook
Company maintains FY 2027 group operating profit guidance of £395 mln-£415 mln
Company expects accelerating revenue growth in the second half of the year
Investment in Autotrader Intelligence expected to be self-funded, supporting long-term margin consistency
Result Drivers
VEHICLE & ACCESSORY SALES DROP - Revenue decline was driven by a 30% decrease in vehicle and accessory sales
RETAILER REVENUE PRESSURE - Retailer revenue fell 1% as average retailer forecourt numbers declined, though numbers improved later in the period
COST CONTROL - Operating costs fell 2%, helping maintain operating profit margins at 63%
Company press release: ID:nRSE8610Ba
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1Group Revenue | Miss | GBP 313.4 mln | GBP 319.96 mln (2 Analysts) |
H1 Group Operating Profit |
| GBP 198.50 mln |
|
H1 Pretax Profit |
| GBP 191.20 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy."
Wall Street's median 12-month price target for Autotrader Group PLC is GBp550.00, about 3.6% below its November 4 closing price of GBp570.80
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)