Fairfax & Trade Me results

Not bad – strong profit growth of 40% versus last year, with Trade Me and Digital leading the way.

Trade Me showed $32m in EBIT, which is for the 6 month period to December 2007. That, apparently, puts them at tracking to hit the $60m required to complete the $50m earn out to March 2008. (That from the Dom Post – but if they really know then they have inside info., which they can’t, so they are guessing)

Actually it could be tight, and it all depends on how well Trade Me did in the 3 months to June 2007, and how well they do in the three months to March 2008. Basically revenue and profit in a rapid growth company move up month by month, and, while a mid year snap shot showed the right run rate, it isn’t over.

If the April-June 2007 period was not so good, then the Jan-March 2008 period needs to be extra good to compensate so that the whole year meets target. (It’s so much easier to predict things in the Nickel game)

Now January is a slack month downunder, but then things pick up – so it will be an interesting run to the end for Trade Me folk.

Arcgk. I really cannot comment any more, though I’ve sadly been out of it for a while. Good luck guys.

Published by Lance Wiggs