TradeMe 'beacon of hope'

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TradeMe 'beacon of hope'

3News NZ

The online auction company floated last November

The online auction company floated last November

By Charlotte Shipman

Auction site TradeMe is injecting a dose of iron into our anemic economy after its first six months on the New Zealand stock exchange.

The company’s interim financial results show it's performed above forecast.

Earnings before interest and tax were up 9 percent to $52 million in the last six months of 2011, and the company is now being seen as a beacon amid a gloomy market.

Forsyth Barr Investment Analyst Rob Mercer says the result is “to be expected”.

“There’s more and more trading going on online, and through that great franchise they are able to expand that business into new areas,” he says.

TradeMe floated on the New Zealand stock exchange after Australian media company Fairfax sold a 34 percent stake last November.

Mr Mercer says investors who bought shares in the float are “doing well, and we see them doing well in the future”.

However, he says in order to ensure revenue keeps growing, costs will have to be kept down.

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Comments

25/02/2012 11:54:05 p.m.

Matty wrote:

@ Ernst. I'm really not being a cheapskate here. I sold a boat recently worth approximately the same as a cheaper new car. Now I really don't mind paying $40-$50 to place the ad. However I was asked $80 just for the cheapest option. Only five years ago I listed an only slightly cheaper vehicle for $20... That's a pretty large price hike, and i'm sure most of it due to a lack of serious competition.

24/02/2012 3:24:56 p.m.

Ernst wrote:

You guys must be newbies to trading it used to cost a lot more than that to advertise in the classifieds without anything like the coverage and success rate. It's your choice try some other way to sell your crap.

24/02/2012 1:50:35 p.m.

Ricko wrote:

I suspect in a stagnant market Trademe is doing exceedingly well on the relisting fee revenue. Time to sell an item is without doubt much greater than a few years ago. For low cost items maybe Sella is an option?

23/02/2012 2:24:05 p.m.

JDUB wrote:

@Luke Same here bro, sold my a bundle of junk at $1ea and sold for a total of $20. Charged $1.40 to upload and $3.90 success fee. Makes me wonder

23/02/2012 9:11:04 a.m.

Luke wrote:

@Matty, couldnt agree more, sold a car for 700 and got charged 70 bucks all up in fees. 10% of the sale price? Thats just daylight robbery.

22/02/2012 9:45:14 p.m.

Matty wrote:

If you ask me, their charges are getting a little high and mighty. They really need to keep New Zealanders on side, in case the likes of Ebay decides to launch their own '.co.nz'.