New Zealand-based online marketplace and classified advertising business Trade Me Group released its interim financial results for the six months to 31 December 2015 reporting a 9 per cent YOY increase to revenue to $105.6 million.
EBITDA was also up 2.5 per cent YoY to $66.3 million and net profit after tax showed a 0.3 per cent increase to $38.5 million
The company says its Classifieds business continued to underpin its growth with revenue in this segment of the business up 14 per cent on a year ago.
Trade Me Property reported strong revenue growth, up 21 per cent year-on-year.
“We’ve seen a 14 per cent increase in listings for sale from agents compared to a year ago, and a very strong increase in agent premium revenue too," says Trade Me CEO Jon Macdonald.
McDonald says Trade Me also made some excellent strides on the product development front with the recent inclusion of free sales data for properties in Auckland, Wellington and Christchurch city in the iOS and Android apps.
"We we know this data is compelling for anyone interested in the property market. We’ve built this in partnership with homes.co.nz – an exciting Kiwi start-up we’ve also invested in.”
Trade Me acquired a 13 per cent stake in Wellington-based start-up PropertyNZ, which operates the new property data website homes.co.nz in late 2015.
Revenue in Trade Me Motors was also up 10 per cent year-on-year as our increased sales capability saw premium revenue from dealer-focused products increase by an outstanding 56 per cent year-on-year.
Chairman David Kirk says the result demonstrates Trade Me’s recent focus on building a better business taking effect.
“We’ve continued to make core product improvements to deliver operational and financial benefits across many areas of the business. As we come to the end of an accelerated period of reinvestment in the business," Kirk says.
"It’s pleasing to see these efforts reflected in another set of record numbers in terms of revenue, earnings and net profit.”
Macdonald adds expenses were up 19 per cent year-on-year, but down significantly from 28 per cent year-on-year growth in the first half of F15. He says expense growth had slowed, as the business got on with delivering growth in the medium to long term.
“Our investment in areas like product development, new ventures and bolstering our teams has always been focused on positioning Trade Me for greater growth opportunities in the future.”
Earnings per share increased to 9.71 cents and a fully imputed interim dividend of 7.8 cents per share will be paid in March.
“Looking ahead to H2 F16, we expect to deliver moderately greater year-on-year growth in EBITDA and NPAT compared with the growth rates we recorded in H1 F16," Macdonald says.
“The business is demonstrating good momentum, and we have lots of opportunity in front of us – both in our core businesses and through extending into new things. We will continue to work hard to capture this opportunity.”