Trade Me deliver record revenue

Trademe Staff from the balcony of their offices in the NZX building.Trade Me, New Zealand’s largest online auction site, has posted year end results showing the company delivered record revenue and profit, while focusing on reinvestment and hard work.

Revenue for the Trade Me Group was $180.1 million in the year ended June 30, up 10 per cent from 2013.

EBITDA was $128.7 million, up four per cent from 2013.

Net profit after tax was $80.1 million, up two per cent from 2013.

Earnings per share were 20.2 cents, an increase from 19.8 cents in 2013. In March dividends of 7.6 cents per share were paid, with 8.4 cents per share to be paid in September.

Strong areas of growth were Motors, Property and Jobs, which together delivered 48 per cent of Trade Me’s overall revenue in 2014. This was up from 43 per cent in 2013.

Acquisitions in 2014 were MotorWeb, LifeDirect and Paystation.

David Kirk, Trade Me chairman, said that the result was in line with expectations, with attention towards positioning the company for longer term growth.

In his letter to shareholders, Kirk stated that many of the achievements over the past year were not the sort that show up in the bottom line of the current year. He said that for Trade Me, investment in future growth centres around hiring more people, increasing investment in brands and consumer acquisition, and buying new complementary businesses.

Jon Macdonald, Trade Me CEO, said that investment had been substantial but careful over the 2014 period.

“We’ve continued to hire strongly and develop additional products, especially in mobile and across our marketplace and property businesses,” he said.

Macdonald said in his letter to shareholders that the company is investing to ensure stronger growth in the medium to long term.

“We expect to grow both revenue and EBITDA over the coming year, but our focus will be on improving the products that we offer, and strengthening our sales and account management.”

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