Auto Trader Group PLC (LSE:AUTO) reported 16% growth in first-half revenues to £249.8mln but saw operating profits fall 2% to £149.1mln.
The car retailer said it anticipates average retailer forecourts to be marginally down year-on-year but forecast stronger average revenue per retailer, with the full-year growth rate likely to be slightly above that achieved in the first half.
Operating profit margin for the full year is expected to be in line with financial year 2022, while Autorama is likely to make an operating loss of around £11mln for the full year, with continued supply challenges across all vehicle types resulting in lower delivery volumes.
Although it said the outlook for future years is more uncertain, the used car market is far less cyclical than the new car market and new car registrations are expected to recover, currently being at their lowest level in 30 years.
The company said the performance of its core Auto Trader marketplace had strengthened over the last six months, achieving double-digit revenue and operating profit growth year-on-year.
Customer numbers and product uptake have exceeded expectations while its competitive position continues to be strong, it said.
Cross platform visits were down 10% to 67.7mln per month (H1 2022: 74.9mln) although up strongly compared to pre-pandemic levels.
Average revenue per retailer per month was up £205 to £2,404.