The owner and operator of a suite of Asia-focussed automotive portals, iCar Asia Ltd (ASX: ICQ) has reported a 140% jump in revenues for the six months ending June 30 2015.
The Results:
- Revenue leapt 140% to $2.6 million
- Costs were held flat at $8.7 million
- Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) losses declined by 15% to $6.698 million
- Cash and cash equivalents were $6.6 million with a capital raising post balance date further boosting the strength of the balance sheet and leading management to comment that "iCar Asia now has sufficient funds to take it to a breakeven position in Q4 2017."
Highlights:
- iCar Asia's websites attracted a record combined monthly audience of greater than 7.7 million unique car buyers
- More than 3,300 dealers paid to advertise across the Malaysian and Thailand iCar Asia portals which was also a record
- The company's Thailand business recorded an EBITDA level profit in the month of July – once again this is a first for iCar Asia
Outlook:
- iCar Asia informed investors in its interim results announcement that during August it had begun "pilot programs and soft launches in relation to its 'Pay Per Lead' product for Car Dealers in Malaysia, with extremely encouraging early indicators of success."
- iCar Asia is effectively an Asian version of the successful Australian automotive classifieds advertising business of Carsales.Com Ltd (ASX: CAR). In fact, Carsales.Com obviously thinks iCar Asia is doing a number of things right as Carsales.Com recently upped its investment in iCar Asia by $3.8 million to maintain its shareholding at 20.2% of the company.
- With operations across Malaysia, Indonesia and Thailand, iCar Asia provides exposure to three enormous populations. If iCar Asia can successfully position itself as the primary online automotive market in any (or all) of these three countries then the upside potential would appear to be significant.
