Trade Me posts flat first-half earnings

TradeMe chief executive Jon Macdonald. Photo / 123RF

Auction site Trade Me posted flat first-half earnings, with revenue up 6.8 per cent to $122.7 million in the six months to December 31.

Trade Me net profit of $46.1m was unchanged after tax and posted EBITDA of $79m. Its revenue increase of 6.6 per cent in the first six months of the year lagged behind a 9.2 per cent rise increase in expense costs.

Revenue for the classified segment of the business - Trade Me Motors, Jobs and Property - increased 18.8 per cent to $67.9m from the same period earlier, driven by listing fees.

Trade Me Motors, its largest classified vertical, reported a revenue increase of 16 per cent and Trade Me Jobs revenue was 18.6 per cent.

Trade Property reported revenue growth of 6 per cent.

Revenue in its 'general items' marketplace was up slightly, following a push to grow earnings in the category.

"As we reported in October 2017, the gross merchandise sales trend for used goods tracked down slowly, but was once again more than offset by the continued strength in new goods which was up 5.0 per cent on last year," Trade Me chief executive Jon Macdonald said in a statement.

It said it expected full-year revenue growth to be similar to that posted in the last financial year and guidance to be unchanged.

In the 2017 financial year, Trade Me revenue increased to $234.9m from $218m, while after-tax profit lifted to $94.4m from $74.9m.

Trade Me shares last traded at $4.30, and have dropped 17 per cent over the past year.

An interim dividend of 9.1 cents per share will be paid on March 20.