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

 

Trade Me predicts drop in property listings revenue

Trade Me predicts drop in property listings revenue as real estate market slows

By Paul McBeth

Nov. 9 (BusinessDesk) - Trade Me has pared back its expectations for how much revenue property listings will deliver in the current financial year as the country's real estate market keeps slowing but still anticipates annual earnings growth.

The Wellington-based online auction company's classifieds revenue rose 13 percent in the four months ended Oct. 31 from the same period a year earlier, driven by a 29 percent gain in motor listings and a 20 percent increase in job ads. Real estate listings revenue was up just 2 percent, and chief executive Jon Macdonald told shareholders at today's annual meeting in Wellington that slowing activity in the broader property market would show up in the annual revenue result.

However, he kept Trade Me's forecast to deliver year-on-year gains in earnings before interest, tax, depreciation and amortisation and net profit, which were $154 million and $93 million respectively in 2017.

"While we have seen further improvement in our market share and some renewed activity after the election, we now believe that the market will remain at low levels for at least the remainder of this financial year given the changes indicated to immigration and foreign ownership of real estate," Macdonald said in speech notes published on the NZX. "Despite the challenge, we retain our profit outlook. In doing so, we intend to deliver another set of record numbers for both revenue and profit for the company."

Trade Me went through a period of tepid earnings growth when it reinvested funds back into the business, which Macdonald has previously said sets it up for medium and long-term success.

The company today said revenue was tracking 7 percent ahead after four months of trading from a year earlier, while expenses were up 10 percent. Ebitda was 5 percent higher after the first four months of the year.

The shares slipped 0.2 percent to $4.32, having dropped 14 percent so far this year.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>


Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>

ALSO:

Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>

ALSO:

CO2 And Water: Fonterra's Environment Plans

Federated Farmers support Fonterra’s bold push to get to zero emissions of CO2 on the manufacturing side of the Co-operative, both in New Zealand and across its global network. More>>

ALSO:

Fisheries: Decision To Delay Monitoring ‘Fatally Flawed’

Conservation group representatives say a decision by the new Minister of Fisheries, Stuart Nash, to delay implementation of camera monitoring of fishing efforts in New Zealand is ‘fatally flawed’. More>>

ALSO:

Kaikōura Quakes: One Year On

State Highway One and the railway were blocked by damage and slips and the Inland Road suffered significant damage. Farms, homes and businesses suffered building and land damage. Power and internet went down, drinking water systems, sewage systems and local roads were all badly affected... More>>

ALSO: