AUTO1 - a leading online used car dealer - surprisingly recorded a profit in daily business in the third quarter and has therefore improved its outlook for the results again. From July to September, the Berlin-based company made a small profit before interest, taxes, depreciation, and special items, leading to an adjustment of the annual forecast.

This led to a significant increase in the SDAX-listed stock, which temporarily rose by 9.32 percent to 6.97 euros, thus continuing the recovery from the decline in recent months. Overall, the stock dropped from nearly 10 euros at the end of July to just over 5 euros in October.

Analyst Marcus Diebel from JPMorgan commented on the strong development in profitability, predicting an increase in market estimates. RBC expert Wassachon Udomsilpa also emphasized that the company is doing well in a tougher market environment. "We believe it makes sense to prioritize profitability over growth at this stage," said the expert.

According to the company's statement on Wednesday, the adjusted operating loss (Ebitda) is still expected to be in the range of 39 to 49 million Euros this year. Previously, a deficit of 50 to 70 million Euros was expected. "We have laid the foundation for long-term profitable growth by reaching the Ebitda break-even point and are now looking forward to investing and growing," CEO Christian Bertermann told the financial news agency dpa-AFX.

In the third quarter, AUTO1 benefited from a significantly higher gross profit per car, which increased from 755 euros to 952 euros per vehicle compared to the previous year. The company achieved higher gross profits per vehicle with the relatively more expensive cars in the retail business - in the third quarter, it was 1912 euros compared to 838 euros in business with professional dealers.

Despite this, AUTO1 had to continue to accept significant losses in sales due to the sluggish market. Compared to the previous year, sales in the quarter amounted to 140,630 cars, a decrease of 14 percent. Accordingly, revenue fell by around a quarter to 1.29 billion euros, as sales prices also fell both in the wholesale business with dealers and with private customers.

Overall, AUTO1 recorded a net loss of 17.6 million euros - compared to 55.1 million euros in the previous year. AUTO1 has recently invested heavily in the brand recognition of its consumer brands Autohero and wirkaufendeinauto.de. However, the marketing costs per vehicle sold have already been declining for some time. In addition, the first phase of the Europe-wide construction of workshops for the preparation of used cars has been successfully completed.