Auto Trader Leads FTSE 100 Lower As Revenues Growth Slumps

Published: Thursday, May 29, 2025 at 8:28 am

**Auto Trader Shares Plunge as Revenue Growth Slows Amidst Vehicle Shortages**

Auto Trader, a prominent player in the FTSE 100, experienced a significant downturn on Thursday, with shares plummeting 14.2% to 788.2p. The decline was triggered by a slowdown in revenue growth, primarily attributed to reduced dealer listings stemming from ongoing vehicle shortages.

While revenues for the fiscal year ending March 2025 still saw an increase, rising 5% to £601.1 million, this was a notable deceleration from the 14% growth recorded in the previous year. The core Auto Trader unit saw a 7% sales increase, reaching £564.8 million. However, Autorama, the company's van leasing service, faced a 12% revenue decline, totaling £36.3 million.

Despite the revenue slowdown, group operating profit rose 8% year-on-year, reaching £376.8 million, driven by a 4% increase at Auto Trader. The company also announced plans to increase its full-year dividend to 10.6p per share, up from 9.6p previously.

The report highlighted that average revenue per retailer (ARPR) per month improved by 5% to £2,854, driven by positive pricing and product strategies. The number of retailer forecourts using the platform edged up by 2% to 14,013. While private listings increased, leading to a 1% rise in live car stock to 449,000, new lease vehicle volumes decreased due to supply constraints.

Auto Trader noted persistent supply issues, particularly for vehicles aged between three and five years old. Despite these challenges, the company reported strong demand for used cars, with record-breaking cross-platform visits and engagement. CEO Nathan Coe expressed confidence in the business's outlook, citing its strong market position and technological capabilities. The company anticipates a pickup in Auto Trader sales during the current financial year, with projected full-year revenue growth between 5% and 7%.

BNN's Perspective: While the slowdown in revenue growth is concerning, Auto Trader's strong market position and the continued demand for used cars suggest a resilient business model. The company's ability to maintain profitability and increase dividends is a positive sign. However, investors should be prepared for a period of moderated growth as supply chain issues persist and market conditions evolve.

Keywords: Auto Trader, FTSE 100, revenue growth, vehicle shortages, dealer listings, Autorama, used cars, sales, operating profit, dividend, ARPR, car market, Nathan Coe, financial results, stock market, market conditions, car leasing, stock, shares

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