Online car seller Carsales.com has raced to a record first half net profit, but expects the brakes to be applied to growth in the next six months.
Carsales net profit rose 10 per cent to $51.3 million in the six months ended December 31 on the back of continued growth of its Australian and international businesses.
The online retailer expects revenue to remain solid, but has forecast more moderate profit growth.
The slower growth outlook was behind a hit to Carsales share price on Wednesday, Motley Fool research analyst Scott Phillips said.
The company's shares had fallen 43 cents, or 3.88 per cent to $10.66 by 1530 AEDT.
"They were one of the darling growth stocks and are now somewhere closer to maturity," Mr Phillips said.
During the first half, revenues from Carsales' Australian operations lifted 11 per cent, aided by more dealer traffic and price rises for premium advertisements.
Carsales chief executive Greg Roebuck said major manufacturers Holden and Hyundai had relaxed restrictions on dealers listing new cars for sale on the website, which helped drive dealer revenue up by nine per cent to $58.8 million.
"We helped them understand you can't sell a secret," he said.
He said a range of smaller manufacturers had also eased restrictions on dealers, but Toyota remains opposed.
Meanwhile, two $5 price rises in premium advertising during the half helped increase revenue from private listings by 15 per cent.
Chief operating officer Cameron McIntyre said a customer backlash following a large one-off price increase in the past had taught them a valuable lesson, with premium listings remaining solid after the recent rises.
"We tend to look for smaller, more regular price increases," Mr McIntyre said.
Meanwhile, the retailer is on the look out for offshore acquisitions to add to its businesses in South Korea, Brazil and Mexico.
"We have capacity to continue to grow. We are generally a conservative acquirer," Mr Roebuck said.
"Asia and Latin America tend to be our core areas of focus."
Any further domestic acquisitions would be in services which add value to Carsales, such as mobile vehicle inspection service Redbook Inspect which was acquired last June, Mr Roebuck said.
CARSALES MOTORS FORWARD
*Net profit of $51.3m, up 10 per cent from $46m
*Revenue of $167.3m, up 10.8 per cent from $150.9m
*Interim dividend of 17.8 cents a share, up from 16.2 cents
