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Trade Me lifts interim net profit

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Auction website Trade Me Group's net profit rose slightly in the first half as revenue continued to improve. 

The company said in a statement that net profit for the six months to December 31 was up 1.1 per cent to $NZ38.4 million ($US29 million) from the previous year, while revenue rose 13 per cent to $NZ96.9m. 

Trade Me Chief Executive Jon Macdonald said expenses were up 28 per cent year-on-year and this ramp-up in costs was reflected in net profit after tax number. 

"We're continuing to invest in people, product development and marketing, as well as ramping up our sales and account management capability. We are convinced this is the right approach and believe that investment now will result in stronger market positions and greater growth opportunities for Trade Me in the future," Mr Macdonald said. 

Looking ahead, he said the full year result would likely deliver on earlier guidance "with low double-digit revenue growth, continuing investment, and therefore subdued EBITDA growth." 

Trade Me is an online marketplace where consumers can buy second-hand and new goods at auction, book holidays, look for property or cars or find a partner.

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Auction website group posts slight increase in H1 profit, on track to meet FY guidance.

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