A good financial year
Chairman David Kirk said Trade Me's result was good, and consistent with guidance provided over the past year. "The result is right in line with our expectations, with double-digit revenue growth and another high tide mark for overall revenue."Revenue was up 11% year-on-year to $199.7m, again underpinned by strength in our trio of Classified businesses where it was up 16% year-on-year to $99.6m. Our Other segment also recorded a strong revenue increase of 23% on F14. Although General Items revenue declined by 2% on F14, we saw sales back in positive territory in the second half of the year.
Classified trio still strong
Collectively Trade Me Motors, Trade Me Jobs and Trade Me Property have continued to deliver strong growth in F15, off the back of a revenue increase of 23% in F14.Trade Me Motors saw revenue increase by 24% on last year, assisted by a full year contribution from the MotorWeb vehicle data business acquired in December 2013. Motors continues to be the market leader in its automotive category.
Product improvement progress
We've put a lot of focus on delivering products to members and customers in F15. In our core marketplace, we've seen some encouraging signs in the second half as product changes begin to take effect.Marketplace-related improvements have included the release of a new homepage with more relevant, data-driven content, a new image-rich search experience and a new listing page. Our efforts are beginning to generate results too, with the number of sales increasing by 2% year-on-year in the April-June quarter, led by new goods' sales growth of 5% year-on-year. We also have several product developments set to land before Christmas 2015.
Trade Me Insurance launched
We launched Trade Me Insurance on 14 August, underwritten by and tailor made with local insurer Tower. As our CEO Jon Macdonald put it: "Working with Tower, we thought we could build a streamlined, simple, good value online insurance experience for New Zealanders, so we did."We believe it is NZ’s most comprehensive online insurance offering to get a quote, buy insurance, make a claim and manage a policy.
New additions on track
In January 2015 we announced our investment in peer-to-peer lending platform, Harmoney. We acquired a 14.1 per cent stake for $7.7m. Harmoney was the first licensed peer-to-peer lender in New Zealand. We see Harmoney as a great fit for Trade Me, because like us it provides Kiwi consumers with a safe, trusted, scalable and efficient online platform to undertake a transaction.In December 2014 we acquired Viewing Tracker, a small Wellington company that minimises hassle for tenants and property managers making arrangements to view rental properties. Founder Aaron Clancy joined the Trade Me Property team and we’ve begun to integrate this service into 'for rent' listings onsite.
464 staff at Trade Me
Two new faces joined our Executive team in F15. Trent Mankelow joined us as our inaugural chief product officer in November 2014. Trent is responsible for making sure we build the right things, and make them great. Stuart McLean joined Trade Me in February 2015 and is running our General Items marketplace business.Overall, we have 464 staff at Trade Me. This is up from 355 staff a year ago and 424 staff in February 2015.
Welcome to the 2015 Trade Me Annual Report microsite. This sets out various information relating to the year ended 30 June 2015.
If you're a Trade Me investor, thanks for your support. And if you’re not an investor, we hope you find something here of interest.