- The Market Herald (TMH) posts a return to profitability in FY23
- TMH FY23 revenue is up 217 per cent to $81.6 million
- Profit before tax was $6 million
- The company acquired Gumtree, Carsguide and Autotrader in the financial year
- TMH has discontinued financially burdensome operations and appointed new management
- Shares last traded at 29.5 cents
The Market Herald (TMH) has posted its FY23 full-year results showing the company has returned to profitability after the less impressive FY22.
The company delivered an EBITDA increase to $12 million (from -$1.9 million) and a profit before tax of $6 million.
In only 12 months the company has turned its position around with company revenues up 217 per cent to $81.6 million.
A full restructure during the financial year saw the end of TMH’s luxury content and German market coverage, leading to a range of redundancies. It is also dissolving its car subscription business.
The Market Herald pointed to its acquisition of Gumtree as a key driver of its success, noting more than 6.5 million Australians connect every month using the Gumtree Group platforms. TMH also picked up Carsguide and Autotrader in 2022.
“The strategic importance of Gumtree Group to the TMH Group is evident in these results … Gumtree is Australia’s leading classifieds platform [and] both Carsguide and Autotrader have leading positions in the segments they operate in,” the company wrote.
Underpinning an impressive 12-month return to profitability is an ongoing company strategic review.
The Market Herald has appointed a new management team and successfully brokered a vendor loan refinancing arrangement with the Commonwealth Bank.
“There were undoubtedly challenges throughout the year, but what this result shows is the transition to our new management team and our new strategy supported by the Board is delivering for shareholders,” TMH CEO Tommy Logtenberg said.
“First, we had to discontinue some activities which were loss-making and lacking a growth plan … While the importance of Gumtree is evident in this strong profitability turnaround for the company, we have multiple strategic growth opportunities which we continue to invest in.
“The hard work put in by the new management team over the past year provides a strong foundation for what’s to come across both the Gumtree Group but also for our businesses in the Capital Markets segment in HotCopper and Stockhouse.”
For those out of the loop, The Market Herald owns Australia’s leading share market trading platform HotCopper.
TMH shares last traded at 29.5 cents.