Trade Me, the online marketplace and classified advertising business has just released its full year financial results.
For the 12 months through to 30th of June this year, revenue for the business has been up 9.2% year-over-year to $218 million.
David Kirk, chairman of Trade Me, says the result is pleasing and keeps consistent with guidance provided over the past year.
"The result is in line with our expectations. Our investment phase is reaching completion and the business is building momentum, demonstrated by the return to profit growth overall and ongoing revenue growth in our General Items marketplace."
Trade Me CEO Jon Macdonald says it’s good to deliver on the plans laid out for investors.
“Since 2013, we've substantially strengthened the business by growing our staff numbers, bolstering our marketing efforts, making our products better and enhancing our sales capability,” he says.
“We're pleased to see these efforts reflected in the results today."
Crunching the numbers
Macdonald explains that Trade Me's net profit after tax was down 6.5 per cent year-on-year to $74.9m, but excluding a one-off impairment charge, underlying profit was up 3.5 per cent year-on-year to $83.0m.
Earnings per share are 18.87 cents, with a fully imputed final dividend of 9.0 cents per share to be paid in September.
In March, Macdonald says the company paid investors an interim dividend of 7.8 cents per share.
Trade Me Insurance was launched in August 2015 which Macdonald says has since delivered a streamlined, simple and good value online experience for Kiwis.
Looking ahead to F17, Macdonald says the company expects total revenue to grow at a similar rate to F16 in percentage terms.
“Trade Me has good forward momentum,” he says.
“We'll continue to derive benefit from the investment we have made over the past three years, and we believe we're better placed than ever to capitalise on the opportunities in front of us.”