Trade Me Group Reports Higher Earnings, Sees Some Risk to FY18 Profit Growth

By Ben Collins Features Dow Jones Newswires

WELLINGTON, New Zealand--Auction website and classified-advertising firm Trade Me Group's (TME.NZ) net profit rose to a record level for the year ended June 30, boosted by strong revenue growth, but the company sees some risk from a softening property market.

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The company posted full-year net profit of 94.4 million New Zealand dollars (US$68.2 million), up 25.9%. Revenue for the year rose 7.7% to NZ$234.9 million.

Trade Me will pay a final dividend of 10 NZ cents a share.

"Looking ahead to FY18, we expect total revenue growth similar to that reported in FY17, however a soft property-listing market means there is some downside risk," said Chief Executive Jon Macdonald.

"With our targeted investment plans, we intend to invest at a rate slightly above revenue growth in FY18," he said, but the company still expects to deliver on-year growth in earnings before interest, depreciation, amortization and impairment, or Ebitda, as well as after-tax profit--but at a lower rate than in the 2017 financial year.

"We'll continue to derive benefit from the investment we have made over the past three years, and we're better placed than ever to convert on the opportunities in front of us and keep growing," Mr. Macdonald said.

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Trade Me's full-year Ebitda was NZ$155.7 million, up 10.8% on year, and was in line with guidance the company had provided. Its earnings per share was 23.76 NZ cents, up from 18.87 NZ cents a year ago.

Write to Ben Collins at ben.collins@wsj.com

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August 23, 2017 17:41 ET (21:41 GMT)