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:

Key Details

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.)