Gumtree Australia Ponders Sale of Capital Markets Arm
Deal News | Apr 11, 2025 | Aim Group
Gumtree Australia is considering selling its capital markets business, which includes The Market Online, HotCopper and Stockhouse. The company has been approached by several interested parties regarding the purchase. The capital markets segment has been underperforming, with a loss of AUD1.1 million on AUD4.7 million revenue in the first half of FY25. By contrast, the core classifieds operations, including CarsGuide and AutoTrader, showed profitability. Gumtree is looking to refocus on its core business by shedding these non-core and loss-making assets.
Sectors
- Capital Markets
- Classifieds
- Media and News
Geography
- Australia – The primary location of Gumtree Australia's business and the relevant market for the sale discussed in the article.
- Canada – Home to Stockhouse, one part of Gumtree Australia's capital markets business being considered for sale.
Industry
- Capital Markets – Involves trading of financial securities, which is relevant due to the nature of Gumtree's capital markets business that includes trading forums and financial news sites.
- Classifieds – Pertains to advertising and marketplace platforms, aligning with Gumtree's core business operations, including CarsGuide and AutoTrader.
- Media and News – Relates to the production and dissemination of content, such as The Market Online which is a financial news site.
Financials
- AUD1.1 million – The loss reported by Gumtree Australia's capital markets division in the first half of FY25.
- AUD4.7 million – The revenue generated by Gumtree Australia's capital markets division in the first half of FY25.
- AUD1.3 million – The profit made by Gumtree's core classifieds operations, including CarsGuide and AutoTrader.
- AUD37.9 million – The revenue reported by Gumtree's core classifieds operations, including CarsGuide and AutoTrader, in the aforementioned period.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Gumtree Australia | Target | Company | The company considering selling its capital markets business, focusing on its core classifieds operations. |
| The Market Online | Business Unit | Company | A part of Gumtree Australia's capital markets business, it's a financial news site. |
| HotCopper | Business Unit | Company | An online stock trading forum, included in Gumtree Australia's capital markets business. |
| Stockhouse | Business Unit | Company | A Canada-based trading forum part of Gumtree Australia's capital markets business. |
| Australian Securities Exchange | Regulatory | Government | Where Gumtree Australia filed its statement regarding the potential sale. |