You are using an older browser version. Please use a supported version for the best MSN experience.

Carsales flags hit in finance segment

AAP logoAAP 28/10/2016

Carsales.com expects steady gains in its domestic core business in the first half of the financial year after a solid performance in the three months to June 30.

However the online advertiser has flagged lower half year revenue and earnings for its domestic finance and related segment, due to a continuing reduction in volume capacity at a major lender.

"The volume capacity reductions experienced in Q4 FY16 have disappointingly continued into the first quarter," the company said in a presentation at its annual general meeting.

It anticipates half year revenue and earnings in that segment to be substantially below the previous year's result."

The company reported a six per cent increase in segment revenue to $63 million in 2015/16. The business, which mainly includes finance broking, accounted for about 18 per cent of total revenue and nine per cent of earnings last year.

Carsales, which also has smaller operations in Brazil, Mexico, Chile and Korea, said it expects to see solid revenue and earnings growth in its international business.

Carsales.com shares dropped 50 cents, or 4.3 per cent, to $11.05.

image beaconimage beaconimage beacon