Trade Me profits steady

Trade Me has posted a largely flat net profits for the year ending June 30 with increased spending eating into bigger revenues. Net profit came in at $80.2 million or 20.2 cents per share – up from $80.1m or 20.2 cents compared to the previous financial year. Revenue rose 11 per cent to $199.7m while expenses jumped by 25 per cent to $64.5m. Trade Me has increased its full-time equivalent staff by one-third over the reporting period to drive new product development. Expenses also climbed on the back of marketing and acquiring MotorWeb, Life Direct and Paystation. RELATED: Read the full report Its earnings before interest, tax, depreciation and amortisation increased 4.4 per cent to $134.4m in 2015 – or by five per cent when excluding losses from its acquisition in peer-to-peer lender Harmoney. Jon Macdonald, chief executive of Trade Me, says there has been “encouraging progress” over the past 12 months and company will pay a final dividend of NZ8.5c. Looking ahead, he says Trade Me is set to deliver similar revenue growth in the current final year with lower expense growth than in the year than just ended.