Car Group declares 21% dividend rise on 1H results

The news: Carsales owner Car Group lifted its dividend after strong half-year results, with double-digit revenue and earnings growth for the six-month period.

The numbers: The online marketplace operator will pay an interim dividend of 34.5 cents a share, 50% franked, on 15 April, delivering a 21% increase on the previous corresponding period. Revenue rose 60% to $530.7 million for the period, while adjusted net profit was up 34% to $162.7 million. The firm's Australia segment recorded earnings growth of 13%.

The context: Car Group's net half-year profit fell 72% to $117 million, however, this reflects last year's acquisition of US commercial trucks and RVs listing business Trader Interactive. This lifted profit in the previous corresponding period by $333 million.

The company commented that the Australian automotive market continued to be resilient despite cost of living and higher interest rate pressures, with traffic and enquiry volumes to carsales.com.au in December all tracking above the same time last year.