Momentum continues to grow
The year ended 30 June 2016 has been one of good progress for Trade Me. Our reinvestment in the business over the last three years is coming to fruition with positive momentum in core metrics, and revenue growth translating into earnings growth as that reinvestment comes to completion.Our revenue continued to grow strongly to a new record of $218.0m, up 9.2 per cent on F15’s $199.7m.
Marketplace returns to growth
In our General Items marketplace, we were delighted to see revenue growth return after two years.Revenue was up 3.5 per cent year-on-year, and up 7.0 per cent year-on-year in the second half of F16. Gross merchandise sales have now been heading in the right direction for five consecutive quarters, and this was the key driver of the segment’s revenue growth.
Good contribution from classifieds trio
Our three classifieds businesses across automotive, real estate and employment turned in another strong performance in F16.Trade Me Motors enjoyed another solid lift in revenue, up 11.2 per cent year-on-year and continues to be the New Zealand market leader in the automotive category. We’ve seen dealer revenue grow strongly after a strengthened sales effort, and MotorWeb revenue increase 15 per cent year-on-year. In July 2016 we launched a reviews and news section too.
Strong mobile focus
The number of mobile sessions on Trade Me overtook desktop sessions back in F14 and now comprises more than 60 per cent of total sessions.Many browsers also use more than one device to access Trade Me during their day. These people are more inclined to transact onsite, so ensuring we deliver a consistent and seamless experience across all devices is important.
509 people at Trade Me
We continue to operate three offices with Trade Me HQ based in Wellington, along with a large office in Auckland and a small office in Christchurch.The number of staff at Trade Me has grown considerably from 464 staff (437 FTEs) in July 2015, to 509 (487 FTEs) as at 31 July 2016.
New brand and ad campaign launched
Trade Me continues to be a strong, trusted, well-known and much-loved brand. We were recently named the most influential domestic New Zealand brand by Ipsos, following on from the same accolade last year.However, our brand has grown in an organic way for many years and we’ve recently done a lot of work to better understand how we’re perceived. We want to develop our brand, make it more consistent, and make sure we’re protecting and nurturing it as best we can.