Trade Me investors were yesterday rewarded with a higher-than-forecast dividend, but some still abandoned the company, believing the increased profit was not good enough.
The online marketplace operator reported earnings of $110.4 million for the year ended June, up 11% on the previous corresponding period and 5% on forecast. The results are the first for Trade Me as a publicly-listed company.
Earnings per share were 19.1c, up from 17.6c in the pcp.
A dividend of 7.8c per share will be paid next month, 15% higher than forecast.
Craigs Investment Partners broker Chris Timms said Trade Me's share price fell 4% after the announcement.
"A lot of people are pricing things to perfection in this market. We saw the same with Summerset when its price went back on a 'reasonable' result."
Continuous disclosure meant that any upside from what a company had said in its forecast or prospectus had already been flagged to the market and investors were reacting to their own perceptions of what the company should have been announcing, he said.
If people sold their shares yesterday, they were not eligible for the dividend.
However, Mr Timms said some investors were looking for growth, as well as income.
"Trade Me has had a good run up until the announcement. It's just not as good as some were expecting. Also, for the first time in a couple of days, international markets are down."
There was a slightly negative tone to the market because of Fletcher Building's reduced result, he said.
Trade Me chairman David Kirk said the company had made a smooth transition to life as a public company.
"We've delivered on the numbers set out in the IPO documents back in December and turned in another year of record profit. We're looking forward to issuing our first-ever dividend as a listed company in September."
