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

 


Trade Me posts slower earnings growth in 1H

Trade Me posts slower earnings growth in 1H, invests for future profits

By Tina Morrison

Feb. 19 (BusinessDesk) – Trade Me Group posted a slower pace of earnings growth in the first half of its financial year as New Zealand’s largest online auction site invested in marketing and more staff to improve its service and position it for higher profit growth next year.

Net profit rose 2 percent to $38 million in the six months ended Dec. 31, slower than the 2.7 percent growth in earnings in the year earlier period, the Wellington-based company said in a statement. Profit was below First NZ Capital’s estimate of $40.9 million. Revenue increased 7 percent to $85.7 million while expenses rose 19 percent to $25.2 million.

Trade Me employed an extra 50 people in the past six months, taking its total headcount to 350, as it strives to improve its web site, adding more services and functions, in order to grow future profits. Trade Me will probably increase full-year profit 7 percent this year, before picking up to an 11.2 percent pace in 2015, according to analysts polled by Reuters.

“We’ve embarked on a period of reinvestment which will impact short-term earnings growth but ensure the company’s long-term growth and success,” said chairman David Kirk. “We are convinced this is the right approach for Trade Me and we believe investment now will result in stronger market positions and greater growth opportunities in the future.”

Investment in the business had gone well and Trade Me will continue to “invest assertively” in the second half of the company’s financial year, Kirk said.

Trade Me will pay a first half dividend of 7.6 cents a share on March 25.

The shares last traded at $4.05, and have slipped 0.3 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Court Ruling: Kiwifruit NZ Ordered To Consider Collaborative Marketing Proposals

The High Court has told kiwifruit marketer Zespri to reconsider collaborative marketing proposals from Splice Fruit and Seeka Kiwifruit to sell fruit offshore that its board had previously rejected. More>>

ALSO:

Electric Vehicles: No Road User Charges Feature In Govt Package

Drivers of electric vehicles won't have to pay road user charges and will be allowed to drive in bus lanes as part of a new government plan to double EV numbers annually to a target 64,000 by 2021. More>>

ALSO:

Pre-Budget: Computer Emergency Response Team, Assemble!

John Key told the country's first ever Cyber Security Summit in Auckland that the government had earmarked funding set up a national Computer Emergency Response Team to help prevent and act on cyber incidents in partnership with the private sector and other organisations. More>>

ALSO:

Job Cutter Goes: Mark Weldon To Step Down As MediaWorks CEO

“When I joined MediaWorks in August 2014, I had a mandate to lead a significant change programme to bring the business back from receivership into a position where it could once again be a strong competitor in the market, with a sound and sustainable future. It was a big brief, laden with inherent challenges, but I took it in good faith and have dedicated myself fully to the goal since." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news