BERLIN (dpa-AFX) - Online used car dealer Auto1 expects a smaller operating loss this year following cost cuts in the second quarter. Chief executive and founder Christian Bertermann thus sees the group on course to finally break even in its day-to-day business. However, because investors are worried about the growth of the Internet platform in view of faltering sales, Bertermann says he wants to invest more again in the future. The SDax-listed share slipped significantly on Wednesday.

The stock lost ten percent in the morning. The share had performed well so far this year and, above all, had increased rapidly in value since its low of under 6 euros at the end of March. However, the weaker-than-expected sales performance is likely to overshadow progress on costs from an investor's perspective, JPMorgan analyst Marcus Diebel wrote in an assessment.

Before interest, taxes, depreciation and amortization, as well as special effects, the loss for the full year should now be between 50 and 70 million euros, the company announced Wednesday. Previously, the Berliners had assumed a loss of 60 to 90 million euros.

In the sale of used cars, Auto1 is meanwhile more cautious after a significant drop in sales in the second quarter. Thus, 625,000 cars plus or minus five percent should be sold, it said. Bertermann previously expected 625,000 to 690,000 cars.

In the second quarter, the adjusted operating loss fell from 46.8 million euros a year earlier to 14.8 million. Bertermann said the Group had taken a major step toward operating break-even. After cutting costs, the company wants to invest in growth again, he added.

Auto1 sold 141,682 cars in the April-June period, down nearly 15 percent from a year earlier. Sales fell by almost 23 percent to 1.34 billion euros, slightly more than analysts had estimated. Another contributing factor was that used car prices fell significantly from the very high levels of a year ago. The average selling price fell from almost 10,500 euros a year earlier to just under 9500 euros.

Auto1 was able to increase the gross profit per vehicle - i.e. the difference between the selling price and the purchase price - from 761 to a record 898 euros. Auto1 is doing particularly well in sales to private customers, where gross profit per car climbed by over 60 percent to 1680 euros. Auto1 is able to refurbish used cars more cost-effectively on its own than from external companies and is continuously increasing the proportion of cars it refurbishes itself. In the dealer business, gross profit increased by almost 11 percent to 810 euros.

However, sales volumes declined in both segments. In recent years, Auto1 had invested a lot of money in building up its private customer business (Autohero, wirkaufendeinauto.de), but the division currently accounts for only around one-tenth of current sales. By the fourth quarter, marketing costs per car in the private customer segment are expected to fall further from the current level of around 700 euros to 500 euros. Bertermann now wants to return to growth at the dealerships. New products on the provider's platform are to contribute to this./men/mis/jha/