By Joe Hoppe

Prosus NV said Thursday that it is exploring all options for its OLX Autos unit after a significant slowdown in the second-hand car market, as exiting the business will significant improve the classified segment's profitability.

The Dutch investment group focused on consumer internet companies said that the core classifieds business of OLX Group is delivering a strong performance with sustained growth and improving profitability, and is well placed for further expansion.

However, the OLX Autos business has been affected by macroeconomic and market challenges, including higher cost of capital, high inflation and reversing Covid-19 pandemic-driven trends.

Prosus said OLX Autos "is no longer the right approach for [the company] and its shareholders," and will explore all options for the business.

Write to Joe Hoppe at joseph.hoppe@wsj.com

(END) Dow Jones Newswires

March 02, 2023 01:33 ET (06:33 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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