Trade Me (TME)

[tim23]

I think the nice bounce this week is due to company getting toward end of reinvestment programme so bigger divvies real prospect.

[IAK]

Trademe has launched new service that allows users to book a courier without leaving the website. Seems like a good initiative, obviously they'll be clipping the ticket along the way.

http://www.nzherald.co.nz/business/n...ectid=11628835

Disc. holding

[tim23]

Great idea - held up nicely last 2 days in weaker market, always an encouraging sign.

[IAK]

Hmm some momentum in trademe lately. What's going on? So much for Morning Star's valuation of $3.70.

Disc. Holding.

[IAK]

Trademe up 25% this year. According to the NBR "people are starting to factor in the underlying business actually growing its earnings for the first time in some time as its costs growth winds down. If that continues that will generate some material earnings growth." Full year results for the year ending June 2016 will reported on 18 August.

Disc. Holding

[Baa_Baa]

Trademe up 25% this year. According to the NBR "people are starting to factor in the underlying business actually growing its earnings for the first time in some time as its costs growth winds down. If that continues that will generate some material earnings growth." Full year results for the year ending June 2016 will reported on 18 August.

Disc. Holding

TME is riding the NZX chase for earnings. It will ride the decline as well. This like many others are becoming a case study in managing capital, scalping dividends, and weathering the inevitable flight to safety. Whenever that might be who knows. It is certainly not a climate for buy, hold, or pray.

[peat]

Actually down 6%. (fy results)
They seem solid enough but uninspiring, and writeoffs are actually a part of business. So once again revenue up but profits not.
Also I noticed the second half was slower than the first so hopefully that's not a trend, simply seasonal.
I increasingly fear for disruption to TME. Especially now thatthe behemoth of Facebook is entering the auction space.
But so far no strong signs of that actually occurring.
What continues though is the need to invest a lot to sustain that revenue growth. Will it pay off ? Not quite evidenced just yet.

Edit: I see Craigs views it slightly differently haha
The result was in line with expectations and operating trends have improved as expected, particularly in the second half of the year

[simla]

I see your point about the market opportunity threat. But I think we might also factor in that these guys seem pretty on the ball too. Nobody could accuse them of letting the grass grow under their feet.

[mccollr]

Trade Me’s foray into the financial services market is yet to prove a winner with its fledgling insurance business under-performing and an investment in loss-making peer-to-peer lender Harmoney causing a drag on profits.
The Wellington-based online marketplace and classified advertising business today reported a 9.2 percent revenue uplift to $218 million for the year ended June with its general items marketplace restoring revenue growth after a two-year absence. Underlying profit was up 3.5 percent to $83 million and the company had a one-off impairment charge of $8.1 million from its struggling online dating business FindSomeone.
Net profit was 1 percent lower due to accounting for losses from the group’s 12.4 percent stake in lending platform Harmoney, the country’s first peer-to-peer lender which is facing increased competition from the arrival of other licensed P2P lenders Squirrel Money, LendMe, Lending Crowd and PledgeMe.
Harmoney reported a $14.2 million loss in the 2016 financial year, compared to $6.3 million the prior year and Trade Me’s share of the loss from continuing operations was $1.6 million, double the amount the prior year. Head of marketplace Stuart McLean has joined the Harmoney board.
Macdonald says the investment is a good fit as the two online platforms have a lot in common and he has confidence that it will pay off in the long-term as the new model for the lending industry gains traction.
Like many early-stage technology startups Harmoney continues to make losses and Macdonald wouldn’t be drawn on what share of losses Trade Me may need to account for in the 2017 financial year. Harmoney has said it is targeting cash flow neutrality – where the money coming in matches the money going out – this financial year.
Harmoney burned through $13 million of cash in the last financial year, after raising almost as much through share issues, and Macdonald points out the valuation in its latest fund-raisings were at a higher level than what Trade Me paid for its stake though that revaluation can’t be accounted for in its books.
Trade Me launched its insurance arm a year ago, selling car, general and house contents insurance direct online. It is underwritten by Tower Insurance.
Sales have been low, though Trade Me wouldn't provide volume or revenue numbers, and has only carried out a low level of marketing so far. Macdonald said it was “early days” and he still believes in the long-term opportunity.
“We’ve had a few performance issues we’ve had to iron out. At the moment we’ve seen low volumes and lower than anticipated a year ago,” he said. “We’ve now got it to a place from experimenting and learning where we have confidence to scale it up.”
Trade Me acquired the life insurance comparison website Life Direct in 2013.
BusinessDesk.co.nz

[tim23]

TME has had a remarkable run in last few weeks this morning even recovered divvy decent volumes too...