Ann: FLLYR: TME: Trade Me full-year results 2013

• Release Date: 21/08/13 10:30
• Summary: FLLYR: TME: Trade Me full-year results 2013
• Price Sensitive: No
• Download Document  6.17KB

					

TME
21/08/2013 08:30
FLLYR

REL: 0830 HRS Trade Me Group Limited

FLLYR: TME: Trade Me full-year results 2013

Appendix 1
Trade Me Group Limited
Results for announcement to the market
Reporting period: 12 months to 30 June 2013
Previous reporting period: 12 months to 30 June 2012

 Amount
(NZ $'000s) Percentage change
Revenues from ordinary activities 164,114 Up 15.2%
Profit from ordinary activities after tax attributable to security holder
78,596 Up 4.0%
Net profit attributable to security holder 78,596 Up 4.0%

Dividend information Amount (cents)
per security Imputed amount (cents)
per security
Final dividend 8.30 3.228

Record date: 13 September 2013
Payment date: 24 September 2013

Commentary on results for the period
For commentary on the results please refer to the highlights and media
announcement attached.
Financial Information
The appendix 1 should be read in conjunction with the consolidated financial
statements for the year ended 30 June 2013 as attached.

 Group
Net tangible assets per share 2013 2012
Net tangible assets per share (cents) (30.11) (34.07)
Basic and diluted weighted average number of ordinary shares ('000's) 396,232
395,746

Media Release:

Trade Me revenue up 15 per cent, buying LifeDirect insurance business

- Revenue up 15% YoY to $164.1m
- Net profit after tax up 4% YoY to $78.6m
- EBITDA up 12% YoY to $123.5m
- Earnings per share of 19.8 cents (up from 19.1 cents in F12)
- Fully imputed final dividend of 8.3 cps (full year dividend of 15.8cps) to
be paid on 24 September
- Trade Me to acquire insurance comparison business LifeDirect
- Rise of mobile continues: now 40% of all visits to Trade Me

Online marketplace and classified advertising business Trade Me Group Ltd
("Trade Me") has released its financial results for the 12 months to 30 June
2013. The company also announced an agreement to purchase online insurance
comparison website LifeDirect.

Chairman David Kirk said the company had reported a "solid and satisfying"
financial performance for the year. "We've delivered another record profit
and a strong dividend which is excellent news for shareholders. Prospects for
Trade Me's continued success remain very good as we continue to position the
business for the future."

Revenue

CEO Jon Macdonald said Trade Me had broadly performed as expected, with
revenue up 15 per cent and in line with guidance issued in February. "It's
been a good year, underpinned by the continued strength of the classified
advertising businesses where revenue was up 29 per cent on last year."

Mr Macdonald attributed the Classifieds segment's success to several factors.
"Listing volumes have been stable in Motors and Property, and higher than
anticipated in Jobs. We've also enjoyed the benefit of good uptake in premium
promotional products, yield increases and a full year's revenue from the
AutoBase acquisition completed last year."

He said the performance of the core marketplace had been underwhelming.
"Although General Items revenue is up five per cent on a year ago, activity
levels have been softer than we'd have liked. We're confident we can deliver
on our ambitions around new goods, despite a slower return on effort than
we'd hoped. We have a clear path forward that will require patience and good
execution, and we remain optimistic about our growth prospects."

In the Other segment, revenue grew by 11 per cent year-on-year. "Our online
dating business FindSomeone had an excellent year, while the three travel
businesses landed in line with our expectations," Mr Macdonald said.

Expenses

Trade Me's expenses were up 13 per cent compared to F12. Mr Macdonald said
this was primarily on the people front and Trade Me now had 316 staff in
Auckland, Wellington and Christchurch. "We've been growing our team to
accelerate our product development and convert on the opportunities in front
of us."

A new acquisition: LifeDirect

Mr Macdonald said Trade Me had entered into an agreement to purchase
LifeDirect (lifedirect.co.nz), an online insurance comparison website based
in Wellington. "We're excited about this foray because we believe providing
consumers with one place to compare insurance products easily and efficiently
is sound. It fits well with our core purpose of connecting two parties to
undertake a transaction or form a relationship. LifeDirect is an excellent
business with a strong team, has a lot of potential for growth, and we think
we can add a lot of value as a source of new customers."

The LifeDirect deal is conditional and expected to be completed in September.
The purchase price is confidential and is not material. The transaction is
cash funded.

Tradevine, Holiday Homes & Treat Me

Trade Me acquired inventory management business Tradevine in August 2012 and
Richmond-based accommodation website Holiday Homes in December 2012. Both
have been successfully integrated and are performing well.

Group-buying website Treat Me was sold via a management buy-out in April 2013
and Mr Macdonald said he was pleased to see it still doing well under its new
owners.

Mobile

Over 40 per cent of all visits to Trade Me are now from mobile devices, and
this relentless growth was driving a lot of the tech team's activity.

"This year we've extended Trade Me across multiple platforms including a new
iPad app focused on buyers and dedicated iPhone and iPad apps for Property
that make extensive use of maps," Mr Macdonald said. "We've also helped
develop apps for Samsung and Panasonic smart TVs, and released substantial
upgrades for our popular iPhone and Android apps."

Outlook

Mr Macdonald said Trade Me's prospects were bright for F14, but continued
investment was necessary. "We expect to grow top line revenue and bottom line
earnings, but these will reflect slower growth than we've recorded this year
while we focus on reinvestment in the business.

"Growth in mobile, new products in the classifieds, the migration of
advertising yield online, the long-term opportunity in online retail, and
forays into new businesses all provide sizeable 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:00239943 For:TME    Type:FLLYR      Time:2013-08-21 08:30:07