Posts Tagged ‘Trade Me’

Trade Me buys MotorWeb

Friday, December 13th, 2013
Photo credit; David Antis on Flickr

Photo credit; David Antis on Flickr

New Zealand-based internet auction site Trade Me has purchased New Zealand-based motor vehicle information company MotorWeb for NZ$19.5m.

The deal is conditional but expected to be completed later this month.

Founded in 1997, MotorWeb is an online business that operates in both New Zealand and Australia that packages and sells vehicle information and reports to finance companies, insurers, car dealers and the public. It offers a suite of more than a dozen products and services.

“The MotorWeb business has a lot of potential to complement our existing Trade Me Motors business, and will give us the chance to broaden and deepen the products and data we provide in relation to motor vehicles,” Trade Me CEO Jon Macdonald said.

MotorWeb staff would move across to join the Trade Me Motors team early next year.

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Trade Me’s earnings growth set to slow

Wednesday, October 23rd, 2013

New Zealand’s largest online auction site will likely see its earnings growth slow to about 8% in the coming year from a 12% pace last year.

Photo credit; David Antis on Flickr

Photo credit; David Antis on Flickr

The slow down is projected as the site reinvests in its business but it is also projected to pick up again in 2015 as those investments pay off.

Trade Me chief executive Jon Macdonald said he is comfortable with analyst estimates in a Reuters poll for earnings before interest, tax, depreciation and amortisation to rise 8.2% in the 2014 financial year, and accelerate to an 11 % pace in 2015.

Trade Me was the biggest disappointment in New Zealand’s 2013 reporting season, based on its stock price reaction, after it warned earnings growth would slow in the coming year as it bolstered its business to drive future profits.

The company’s shares have slid almost 4% since it reported earnings on August 21, and the stock is the third worst performer on New Zealand’s benchmark index the past month, having slid 8%. The stock was recently up 2% to $4.52.

“Fundamentally we are still very much a growth company,” Macdonald  said. “There’s an enormous amount of headroom that we have.”

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New Zealand’s largest online auction site sees profits stagnate

Wednesday, October 9th, 2013
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.