Electronic commerce is said to have the potential to alter industry structures and affect the way businesses compete for markets (Applegate et al. 1996). Carsales.com Ltd is Australia’s has solid performance at electronic commerce and is admitted the number one online automotive classified business. (Media Release. 2008) This essay is attempt to identify and understand the revenue model of carsales.com.au, one of the most popular website of carsales.com Ltd, and analysis the website presence.
Introduction
Carsales.com Limited is an Australian unlisted public company based in Melbourne, with more than 400 shareholders, including a 49.6 per cent shareholding by PBL Media and many individual Australian car dealers and automotive industry entities. Its first revenues were reported in the financial year 1998. In November 2005, Carsales.com acquired the on-line classified assets of ACP Magazines in exchange for 41% of the stock in carsales.com. Today, the Carsales Network includes the clear market leaders in automotive classifieds, construction and equipment classifieds, marine classifieds and motorcycle classifieds. Carsales is the first company to have made the BRW Fast 100 for five consecutive years, also being in the Deloitte Technology Fast 50 in 2004, 2005, 2006 and 2007. In publishing its interim accounts to December 31, 2007, Carsales reported revenue growth of 50 per cent from $21.274m to $31.945m. Profit (EBITDA, Earnings before interest, taxes, depreciation and amortization) grew from $6.553m to $12.592m – an increase of 92 per cent on the prior corresponding period. Carsales.com Ltd also reported an after tax profit of $8.467m - up 81 per cent for the same period last year. (Financial report. 2008) Carsales.com Ltd Managing Director and CEO, Greg Roebuck, said the results were thanks to strong organic growth across the company’s automotive and allied websites and the successful integration of new acquisitions including Discount Vehicles Australia and Redbook. He stated Carsales.com Ltd had achieved excellent results in both the retail and business-to-business arenas.
(Media Release. 2008)
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