Trade Me Group Ltd has released its full year financial results for the 12 months to 30 June 2017 with Trade Me Jobs being described as the company’s ‘Star Performer’. Chairman David Kirk said F17 had been another year of “excellent progress” with revenue, EBITDA and net operating profit all at record levels. “We’re proud to have delivered on the promises made to our 8,827 investors,” he said.
Trade Me CEO Jon Macdonald said a multi-year period of accelerated reinvestment in people, product development, marketing and sales had set the company up for success over the medium to long term. “The investment we’ve made over the past few years has resulted in a fundamentally stronger business. The company is going well and we’ve delivered revenue and profit growth to our investors, and also demonstrated our continued ability to keep costs within our forecasts.”
Trade Me’s revenue reached a record of $234.9m in F17, up 7.7 per cent on $218.0m in F16. In the second half of F17, revenue grew by 6.7 per cent year-on-year. Trade Me’s net operating profit was up 12.0 per cent year-on-year to $93.0m, well ahead of last year’s $83.0m. Earnings per share increased to 23.76 cents, up from 18.87 cents a year ago, and a fully imputed final dividend of 10.0 cents per share will be paid on 19 September 2017. In March 2017, Trade Me paid investors an interim dividend of 8.5 cents per share.
Mr Macdonald said the Classifieds continued to do well, with revenue up 11.3 per cent year-on-year to $125.5m underpinned by improved products and strong growth in premium revenue.
“Our employment business, Trade Me Jobs, was again the star performer with revenue up 25 per cent year-on-year,” Mr Macdonald said. “The team has been doing an excellent job, bolstered by the tailwinds of the strong New Zealand employment market, and a big effort improving our mobile apps.”
The number of staff at Trade Me has grown from 509 (487 FTEs) as at 31 July 2016 to 543 (512 FTEs) as at 31 July 2017. “We’re proudly anchored in Wellington and the majority of our team is in the capital, but our Auckland office is now 150-strong,” Mr Macdonald said. “We also have big plans to expand our team in Christchurch and will be looking to hire around 30 primarily tech people over the coming months.”
There have been several changes to the Trade Me Executive team. Annie Brown joined as the inaugural chief people officer in June 2017, and Trent Mankelow became the inaugural chief customer officer a month later. Alan Clark (Head of Trade Me Motors) and Jeremy Wade (Head of Trade Me Jobs) also joined the Executive team in July.
In September, Mark Rees will join as Trade Me’s first Chief Product and Technology Officer, bringing together the company’s product development, data and technology platforms.
Mr Macdonald also acknowledged the contribution of two executives set to move on from Trade Me in coming months, Head of Commercial Jimmy McGee and General Manager of Platform and Operations Dave Wasley. "Both have been fantastic contributors to Trade Me over the past decade. I would like to thank both Dave and Jimmy for helping to shape this company for the better."