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UK's Auto Trader H1 group revenue falls, maintains 2027 operating profit guidance 

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

H1Group Revenue

Miss

GBP 313.4 mln

GBP 319.96 mln (2 Analysts)

H1 Group Operating Profit

GBP 198.50 mln

H1 Pretax Profit

GBP 191.20 mln


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


Reuters Recommended Reads

  • Nov 4 - M&S profit rebounds from cyberattack but clothing drags on recovery

  • Nov 4 - UK's Barratt Redrow flags slower bookings after 12% decline in home completions

  • Nov 2 - Ireland's Ryanair H1 profit falls 15% as fuel costs rise


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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