iCar Asia’s quarterly net operating cash outflow at 5-year low

• Malaysia and Thailand record quarterly positive Ebitda, net cashflow in 2Q19
• Indonesia makes progress, halves its quarterly Ebitda loss year on year

ICAR Asia Limited, reported that cash collections for the second quarter of 2019 (2Q19) were US$2.62 million (A$3.73 million; RM10.76 million), up A$0.52 million or 16% versus 2Q18. 

[A$1 = US$0.70; A$1 = RM2.88]

The growth was driven by strong cash collections in all business units including Used Car and New Car across all three countries, delivered during a quarter in which elections were held in both Thailand and Indonesia.

Strong cash receipts growth and lower expenditures led to a significant decrease in net operating cash outflow by 48% year on year to A$1.77 million.

This is the fourth consecutive quarter of strong net cash outflow improvements and is a result of iCar Asia’s operations in Malaysia and Thailand now consistently being positive cash contributors, Indonesia halving its net cash outflow and corporate costs remaining stable versus 2Q18.

These trends are expected to continue through 2019 resulting in a consistent reduction of net operating cash outflow as the company progresses to Ebitda breakeven by the end of 2019.

iCar Asia Limited chief executive officer Hamish Stone (pic) commented: “We have continued our positive start to 2019 into the second quarter where we have witnessed strong progress in all three countries. 

“Malaysia and Thailand were both once again Ebitda and cashflow positive in 2Q. Indonesia continued its path in halving its Ebitda losses and with corporate costs remaining flat, we remain on track to achieve Ebitda breakeven by end of 2019.”

The company closed 2Q with A$12.9 million in cash and cash equivalents after receiving A$7.67 million from the exercise of options issued under the terms detailed in 2017 Rights Issue Prospectus, dated Nov 15, 2017. The company also has access to additional funds in the form of a A$5 million debt facility which remains undrawn.

iCar Asia’s two largest revenue markets, Malaysia and Thailand, continued to be Ebitda and cashflow positive in 2Q19 in line with iCar Asia’s original guidance, and the group remains on track to reach Ebitda breakeven by the end of 2019.

Malaysia had its third consecutive quarter of positive Ebitda and cashflow in 2Q19. June 2019 audience saw an increase of 7% versus June 2018.

The strategy to focus on listing quality where low quality or sold listings are removed from the marketplace resulted in a 16% decrease year on year in listings for June 2019, though total leads generated remained steady.

Number of paid accounts was maintained at the same level versus 1Q19, indicating minimum churn from the price increases introduced in April 2019.

Thailand had its second consecutive quarter of positive Ebitda and cashflow in 2Q19.  Account volumes remained at the same levels as 4Q18 while listings showed an increase of 18% year-on-year in June 2019.

Audience and Leads followed the same trends as seen in 1Q19, and decreased (37% and 23% respectively), however these were both subject to the one-off impact of the general election in late March/early April and the period leading up to the coronation of the King of Thailand in early May.

Indonesia has further progressed its monetisation in the used car segment, helping to decrease its Ebitda loss by half.

Audience and leads marginally increased by 1% and 3% respectively year on year despite being impacted by the general election in mid-April and subsequent brief period of instability following the official announcement of election results in early May and also the Eid celebrations in June. Listings decreased 6% year-on-year in line with expectations as free listings continue to be restricted.