Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


UPDATE: Trade Me seeks acquisitions, may extend bank loan

UPDATE: Trade Me seeks acquisitions, looks at longer bank loan

By Paul McBeth

Feb. 20 (BusinessDesk) - Trade Me, the online auction site spun out of Fairfax Media in 2011, is in the market for more acquisitions, and may extend its $200 million bank loan.

The Wellington-based company made three purchases last year - the holidayhomes.co.nz directory site, Tradevine inventory management tool and Autobase classifieds site - and plans to keep doing so.


Chief executive Jon Macdonald said the company plans to keep investing as it seeks new growth opportunities, and "we'll likely augment our portfolio with judicious investments over the coming years."

Macdonald told analysts there were "clear opportunities in the classifieds business"

"It's quite nice to have three smallish acquisitions under our belt, and we're going to continue to grow out muscle in this space," he said.

The online auction site held $36 million in cash and equivalents as at Dec. 31, and chief financial officer Jonathan Klouwens said Trade Me is very happy with the facility, it's terms and is looking at extending it.

Trade Me took on the $200 million facility as part of Fairfax Media's partial float, when the Australian firm then drew down $166 million cash as part of its exit.

The online auction site today announced a 2.7 percent increase in profit to $37.4 million, or 9.43 cents per share, in the six months ended Dec. 31. That beat the revised forecast from its initial public offer of $34.8 million, and just short of Forsyth Barr analyst Rob Mercer's expected $38.1 million.

Earnings before interest, tax, depreciation, amortisation and depreciation climbed 14 percent to $59.2 million, and revenue gained 18 percent to $80.4 million.

Macdonald said the company is comfortable with analysts' forecasts for annual earnings, with trading in the last six weeks consistent with the first half. Trade Me is expected to post net profit of $77.5 million on sales of $163.9 million, based on the median forecasts compiled by Reuters.

The shares fell 2.7 percent to $4.29 in trading yesterday, and have gained 11 percent this year.

The stock is rated an average 'hold' based on nine analyst recommendations compiled by Reuters, with a median target price of $4.145.

Trade Me's board declared an interim dividend of 7.5 cents per share, payable on March 26 for shareholders on the register as at March 15.

Trade Me's general items revenue grew 7.5 percent to $33.12 million on slightly softer volumes than expected, while classifieds jumped 35 percent to $33.1 million as the company grew its market share of job ads. Other revenue climbed 10 percent to $14.1 million.

Macdonald said Trade Me has expanded its mobile team and built a suite of applications with a third of visits coming on mobile devices, twice the number a year earlier.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news