31 Oct 2013

TradeMe expects slower profit growth

7:35 am on 31 October 2013

TradeMe says its rate of profit growth this year will be slower than it has been in the past as it spends to revitalise its online auction business.

Chief executive John Macdonald told the annual shareholders' meeting sales in its traditional business so far this year are flat.

However, he says its classified advertising sales, including its jobs and real estate operations, are growing strongly and that part of the business has great opportunities.

Mr Macdonald says there are some challenges in the area of general items and the company is looking to return that business to a greater level of growth.

He says TradeMe needs to grow its team and increase its marketing spend.

Mr Macdonald says he expects sales and profit growth will pick up again in 2015 as the investment the company is making starts to pay off.

In the 12 months to the end of June, TradeMe's net profit rose 4% to $78.6 million.