Carsales.com.au reports bumper profit, moves closer to sharemarket float

Automotive classifieds site Carsales.com.au has cashed in on a downturn-driven surge in used car sales to report a bumper net profit of $30.7 million, up almost 64% on the previous year.

The company, which is half-owned by PBL Media, is also moving closer to its stated goal of a sharemarket listing and is expected to make an announcement on timing in the next few weeks.

PBL Media owns 49.5% of Carsales.com.au, while the ad company’s chairman Wal Pisciotta owns 16.1% and chief executive Greg Roebuck has 4.5%. The remaining shares are mainly owned by car dealers.

Carsales.com.au seeks a sharemarket float as the best way to allow these minority investors to get a capital return on their investment.

But PBL Media, which is also the owner of the Nine Network and ACP Magazines, says it will not be looking to sell any part of its stake in the float, despite the fact that PBL is carrying $4 billion in debt.

PBL Media chief executive Ian Law says the company will also hold on to its stake in ticketing company Ticketek.

Exactly how much Carsales.com.au would be valued at is not clear. However, taking the company’s operating profit of $43.7 million and using a multiple similar to that of online classifieds company Seek, indicates a valuation well above $720 million.