Trade Me beats profit forecast

Trade Me has reported profits of $75.6m in its first full-year report with end of year targets also on schedule.

The New Zealand online trading company beat forecasts of $65m since the company was floated on the stock exchange, with the sales covering 12 months up to June 30 this year.

The country’s most visited website didn’t beat revenue forecasts, however, positing $142.5m which was slightly short of the predicted $144.8m total.

Trade Me says it will pay a dividend of 7.8 cents per share against its forecast of 6.8 cents stated in prospectus, with the company on track to meet its December 2012 target of a $68.5 million net profit.

General items predictably performed strongly, with a 8% increase in mobile phone trading through the development of smartphone applications.

Company CEO Jon MacDonald says Trade Me’s classified businesses including Trade Me Motors, Trade Me Property and Trade Me jobs all performed strongly."Our core 'general items' marketplace performed in line with our expectations," he says.

"Growth in mobile, online retail, and the migration of advertising yield online all provide excellent opportunities for Trade Me over the coming years."

"Throughout the year, we've also seen the proportion of fixed price transactions continue to grow as buyers move towards new goods and instant eCommerce experience."

"In the longer term, we're confident about the prospects of our business and its foundations.”