Autotrader Group (AUTO) H1 2025 earnings summary

Executive summary

• Group revenue rose 8% year-over-year to £302.5m, with operating profit up 14% to £188.4m and basic EPS up 22% to 15.56p, supported by record engagement and activity on the platform.

• Core Auto Trader revenue increased 9%, with retailer revenue up 8% and retailer forecourts up 2% to 13,986; ARPR up 6.3% to £2,852 per month.

• DealBuilder product scaled to 1,500 retailers and 23,000 deals, with monetization underway and 20% of trialists now paying.

• Autorama revenue declined 10% to £19.0m, but operating loss halved to £2.8m.

• Cross-platform visits increased 7%, with Auto Trader over 10x larger than its nearest competitor.

Financial highlights

• Group revenue: £302.5m (+8%); operating profit: £188.4m (+14%); profit before tax: £187.5m (+15%).

• Adjusted EBITDA up 8% to £196.9m; cash generated from operations up 9% to £201.6m.

• Basic EPS up 22% to 15.56p; adjusted EPS up 11%.

• £122.2m returned to shareholders via £64.9m share buybacks and £57.3m dividends; interim dividend of 3.5p per share (+9%).

• Net cash position of £15.1m at period end, with gross bank debt reduced to nil.

Outlook and guidance

• Retailer forecourt growth expected to remain strong but with continued dilution from smaller, lower-yielding retailers.

• Stock lever expected to be slightly negative for the full year due to faster speed of sale and stable live listings.

• Previous guidance on other revenue lines, Autorama losses, operating profit margins, and capital allocation policy unchanged.

• Medium-term outlook anticipates normalization in stock ARPA as supply constraints ease.

• Confident in outlook due to strong market position and ongoing investment in data, technology, and AI.