Auto Trader Group plc (ATDRY) Q2 2024 Earnings Call Transcript

Auto Trader Group plc (OTCPK:ATDRY) Q2 2024 Earnings Conference Call November 9, 2023 4:30 AM ET

Company Participants

Nathan Coe – Chief Executive Officer

James Warner – Chief Financial Officer

Catherine Faiers – Chief Operating Officer

Conference Call Participants

William Packer – BNP Paribas Exane

Andrew Ross – Barclays

Sean Kealy – Panmure Gordon

Pete-Veikko Kujala – Morgan Stanley

James Tate – Goldman Sachs

Giles Thorne – Jefferies

Ciaran Donnelly – Berenberg

Rahul Chopra – HSBC

Nathan Coe

Good morning, everyone, and welcome to Auto Trader’s Results for the Six Months Ending 30th of September 2023. As usual, I’m joined by our COO, Catherine; and our CFO, Jamie.

Our performance in the first half demonstrates the strength of our business through different economic cycles, the strong partnership we have developed with our customers and a resilient used car market. Vehicle demand remains robust, and supply will continue to be impacted by low new car sales over the past few years.

We’ve also made good progress on our key strategic initiatives across our marketplace, platform and digital retailing, providing a long runway for future profitable growth. For this reason, we have confidence in both the second half of the financial year and the years to come, particularly as many of the structural changes in the automotive industry, be that electric vehicles, agency models or direct sales, all present opportunities to extend our brand, technology, data and buying experience to help new and existing customers and car buyers.

Let’s move now to our strategic overview. Our core Auto Trader business grew revenue 9%, operating profit 10% and achieved operating profit margins above 70%. Revenue growth was higher at a group level, and group operating profit also grew 10%.

Our core retail revenue line continues to perform well. Average revenue per retailer, or ARPR, grew 12%. And

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