New Zealand’s largest online auction site sees profits stagnate

Photo credit; David Antis on Flickr

Photo credit; David Antis on Flickr

New Zealand’s answer to eBay, Trade Me, posted slower profit growth for 2013 and said earnings growth would continue to be lacklustre in the coming year as it reinvests in its business.

Trade Me profit rose 4% to $78.6 million in the year ended June 30, slower than the 8.4% pace a year earlier, the Wellington-based company said in a statement. Revenue rose 15% to $164.1 million as classified advertising sales surged 29% while fees from sales of general items rose 5%. Profit was just above First NZ Capital’s estimate of $77.6 million.

“We expect to grow top line revenue and bottom line earnings but these will reflect slower growth than we’ve recorded this year while we focus on reinvestment in the business,” said chief executive Jon Macdonald.

Trade Me, which has attracted about two thirds of New Zealand’s population to its online marketplace, is adding to its core auctions business to drive future growth.

The company said it had agreed to buy online insurance comparison business LifeDirect, adding to its purchase of inventory management company Tradevine and holiday rental accommodation website Holiday Homes in the past year.

To read more on this story, click here.

Tags: , , ,

Comments are closed.