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Current as of 01/10/14 01:00PM NZST

Jamie Gray

Jamie Gray is a business reporter for the New Zealand Herald and APNZ wire agency

Trade Me profits up 10pc

Photo / Bay of Plenty Times
Photo / Bay of Plenty Times

Newly-listed online trading platform Trade Me said its first annual net profit as a listed public company came in at $75.6 million, up 10 per cent on its prospectus forecast.

Total revenue came to $142.45m, up 13.8 per cent compared with the previous year, but down from its prospectus forecast of $144.8m.

The company's earnings before interest, tax, depreciation and amortisation for the 2011-12 year to June were $110.4m, up 11 per cent on the previous year and up 5 per cent on its forecast.

Trade Me announced a 7.8c per share dividend, up 15 per cent on its forecast.

See the results announcement here.

The company said it remained committed to delivering on the final part of its initial public offer (IPO) forecast over the six months to December 31, which was for a net profit of $34.8m.

Chairman David Kirk said the company had made a smooth transition from being a part of the Fairfax media group to life as a separate entity.

Today's profit, which included a $3.3m gain on its $11.5m acquisition of vehicle listings company AutoBase, was ahead of market expectations .

"We've delivered on the numbers set out in the IPO documents back in December and turned in another year of record profit," Kirk said in a statement.

Trade Me chief executive Jon Macdonald said there had been varied levels of strength across the company's portfolio, but no big surprises.

"In the short term, we believe the New Zealand economy remains fragile, but we are starting to see some activity out of the Christchurch rebuild, as well as better support in the Auckland property market," he said in a statement.

The company's core "general items" marketplace performed in line with the company's expectations, with a definite shift in activity towards mobile applications, he said.

The proportion of fixed price transactions also continued to grow.

The classifieds businesses - Trade Me Motors, Trade Me Property, and Trade Me Jobs - all delivered a strong performance during the year.

Trade Me's IPO raised $363.5m for its majority (66 per cent) owner, Australia's Fairfax Media in December last year.

Shares in Trade Me, which were issued at $2.70 each, traded this moring at $3.88, down 9c on Tuesdays' close.

- APNZ

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