Ann: FLLYR: TME: Full year results 2012 - Trade M

• Release Date: 22/08/12 10:30
• Summary: FLLYR: TME: Full year results 2012 - Trade Me hits prospectus forecast
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TME
22/08/2012 08:30
FLLYR

REL: 0830 HRS Trade Me Group Limited

FLLYR: TME: Full year results 2012 - Trade Me hits prospectus forecast

Announcement: Trade Me
22 August 2012

Full year result: Trade Me hits prospectus forecast

o Prospectus targets achieved for this financial year
o NPAT of $75.6 million (up 10% on forecast)*
o EBITDA of $110.4 million (up 11% on F11, up 5% on forecast)*
o Earnings per share of 19.1 cents (up from 17.6 cents in F11)
o Dividend of 7.8 cents per share to be paid in September (15% higher than
forecast)
o Announcing the acquisition of Tradevine, to further strengthen new goods
proposition
o On track for 31 December 2012 prospectus target

* Figures include $3.3 million gain on AutoBase transaction.

Online marketplace and classified advertising business Trade Me Group Ltd
("Trade Me") released its inaugural full year financial results for the 12
months to 30 June 2012 this morning.

Trade Me chairman David Kirk said the results were good to see, especially in
"variable" economic conditions. "The business has made a smooth transition to
life as a public company. We've delivered on the numbers set out in the IPO
documents back in December and turned in another year of record profit. We're
looking forward to issuing our first ever dividend as a listed company in
September."

Revenue

Trade Me CEO Jon Macdonald said there had been varied levels of strength
across Trade Me's business portfolio but "no big surprises".

"Our core General Items marketplace performed in line with our expectations,
with a definite shift in activity towards mobile. Throughout the year, we've
also seen the proportion of fixed price transactions continue to grow as
buyers move toward new goods and an instant ecommerce experience."

The Classifieds businesses -Trade Me Motors, Trade Me Property, and Trade Me
Jobs - all delivered a strong performance during F12. "A number of factors
are at play here, including a semblance of returning market confidence, good
uptake of our premium promotional products, and the positive impact of our
acquisition of vehicle listing aggregator AutoBase," Mr Macdonald said.

In the Other segment, revenue was below forecast, and Mr Macdonald attributed
it to two main causes. "First, our Advertising business fell short of our
revenue expectations. The online display advertising industry has been patchy
over F12, and we've seen the growth of international publishers at the
expense of existing local players.

"Second, Treat Me came in below a bullish forecast. We view group buying as a
young and uncertain industry, but one that still has potential. Separately,
we recorded good performances from our dating business FindSomeone and our
travel businesses Travelbug, Holiday Houses, and BookIt."

Expenses

Mr Macdonald said Trade Me's expenses were tracking predictably and under
control. "In particular, we were restrained in our advertising and web
infrastructure spend."

Priorities

Trade Me had been focused on expanding its mobile offering throughout the
year. "Mobile now accounts for 8% of sales in our General Items business," he
said. "We've built and released a suite of mobile apps and
smartphone-optimised sites across Trade Me and a number of our individual
businesses, including Travel, FindSomeone and Treat Me."

New goods also remained a high priority, Mr Macdonald said. "We've continued
to work on improving the buyer and seller experience for those trading in new
goods. We welcomed aboard well-known Kiwi retailers like Hallensteins,
Glassons and The Warehouse this year. Back in April we also announced a deal
with global ecommerce platform provider ChannelAdvisor to facilitate supply
from offshore retailers, and we're on track to have some of these sellers
trading before Christmas."

Mr Macdonald also announced the acquisition of Tradevine, a cloud-based
inventory management tool with integration into Trade Me and other ecommerce
channels. "Tradevine provides sellers with a dashboard to manage sales,
inventory and listings and we think it will also be a valuable tool for
retailers. We're delighted to welcome the Tradevine team on board."

The Trade Me team had grown in line with IPO forecast. Mr Macdonald said a
small Christchurch office had recently been established, tapping into the
labour pool of talented Canterbury developers. In Wellington, Trade Me has
entered into an agreement for the lease of 1 Market Lane, a new building on
Cable St due to be ready for occupation in mid-2014.

The future

Looking ahead, Mr Macdonald said: "In the short term, we believe the New
Zealand economy remains fragile, but we are starting to see some activity out
of the Christchurch rebuild, as well as better support in the Auckland
property market. We remain committed to delivering on the final part of our
IPO forecast over the 6 months ending 31 December 2012.

"In the longer term, we're confident about the prospects of our business and
its foundations. Growth in mobile, online retail, and the migration of
advertising yield online all provide excellent opportunities for Trade Me
over the coming years."

-ends-

More information:  Trade Me investor website: http://investors.trademe.co.nz/

Contact:   Paul Ford, Trade Me, +64 4 803 2611, [email protected]
End CA:00226271 For:TME    Type:FLLYR      Time:2012-08-22 08:30:26