- iCar Asia achieved unaudited revenue in 3Q of US$2.1 million
- Malaysia operations became Ebitda and cashflow positive in September
ICAR Asia Limited, owner of a network of Asean automotive portals, has announced Q3 revenue growth of 51% compared to the same period last year, recording A$3 million (US$2.1 million) in unaudited revenue.
The company attributes this boost in revenue to continued strong growth in the Used and New Car core businesses.
Hamish Stone, CEO of iCar Asia Limited commented on Ebitda and revenue growth: “This gives confidence that our business model works for these markets and that we are building the business in the right way. The next market to reach Ebitda and cashflow breakeven is Thailand and this is on track for the end of 2018. The core business is showing strong growth and this coupled with high levels of audience growth means we are on track for group profitability.”
In terms of audience numbers, iCar Asia achieved a 20% year on year growth to approximately 12 million. Among the business challenges the group continues to manage include the May 2018 pricing increase in Malaysia and the September 2018 introduction of subscription pricing in Indonesia.
“The initial impact has been the loss of lower value accounts which resulted in an overall decrease of 6% in total account numbers year on year. Despite this reduction in accounts, listings grew year on year by 1%. We expect the number of accounts to return to the growth path during 4Q18.”
Its Malaysian operations became Ebitda and cashflow positive in September 2018. In a press release, the company states: “This is expected to continue on a quarterly basis and is four months ahead of iCar Asia’s original guidance.”
Malaysia also closed 3Q with an audience of 3.96 million, on average 85% higher than the corresponding quarter last year. “We continue to pursue our policy of increasing listing quality on the site by removing low quality listings and this has resulted in an increase in buyer leads of 23% year on year, despite a reduction in total listing volumes as a result of this policy. The win-back of active accounts after the pricing increases in May 2018 continues.”
However, in Thailand, the company reports a 2% reduction in audience numbers year on year. As for dealer accounts and listings, there was an increase of 22% year on year and 8% respectively.
Nonetheless, the company claims it remains on track to reach Ebitda and cash flow breakeven in the Thai market by 2018 end, as they focus on improving traffic quality with digital marketing partners.
Referring to Thailand and Malaysia, the press release states: “Together these markets will be the key drivers of pushing the group to breakeven, which is still on track for December 2019.”
The company’s cash receipts increased by 46% from A$2 million in 3Q last year to A$3.2 million in the same quarter this year. As for net cash used in operating activities, there was a 17% reduction from previous quarter from A$3.4 million to A$2.8 million this quarter.
The company closed 3Q with access to up to A$28.6 million in funds, comprised of A$12.2 million in cash and cash equivalents, and up to A$16.4 million from a committed debt facility and from the potential exercise of options on issue, due to expire in June 2019.
Listed on the Australia Securities Exchange, iCar Asia, and headquartered in Kuala Lumpur, Malaysia, the company is focused on developing and operating leading automotive portals in Malaysia, Indonesia and Thailand. iCar Asia is continuously working to capitalise on its market-leading positions, with its online properties currently reaching over 11 million car buyers and sellers in the region every month.