Asian automotive portal, iCar Asia Limited (ASX: ICQ), are set to receive a boost in confidence following the release of last quarters record cash receipts. The results recorded a total of A$4.2m in Q4 2019, a 39% or A$1.2m increase on the same period the year prior, with 2019 net operating cash flow up 37% from 2018. iCar, who have had a busy year acquiring Carmudi Indonesia, are set to continue their impressive run, with the company reporting 2020 revenue estimates to increase more than 50% year to year.
Based in Malaysia, iCar connects automotive buyers and sellers through various online platforms, allowing sellers to auction and set price countdowns for their cars, and allowing buyers to make direct enquiries to sellers through their platforms. With eight brands across Malaysia, Indonesia, and Thailand, the company collectively hosts over 8 million users every month, making it the leading automotive network portal in their market.
It has been a successful few months for the company, with the Carmudi Indonesia acquisition late last year estimated to bring in almost 2 million additional site viewers every month and more than double iCar’s Indonesian revenue. The company also achieved breakeven EBITDA figures in November 2019, one month ahead of schedule, despite the integration and transaction costs of the aforementioned acquisition. The company has also announced that they estimate to be cash-flow positive from mid 2020.
iCar CEO Mr. Hamish Stone commented on the results “The year of 2019 was a highly successful year for the Group as we achieved run rate EBITDA breakeven for the Group in November 2019, one month ahead of our guidance. With the acquisition of Carmudi Indonesia now completed, we look forward to an even more successful year in 2020 where we will leverage on our leadership positions in all 3 countries to further grow our business portfolio into greater profitability”.
News of the cash receipts was well received by the market, with ICQ shares in the company surging 13.70% to $0.50 at time of writing.