Groupon's turnover ten times larger in one year

Internet deals site Groupon has announced mixed second-quarter results today: alongside a huge growth of turnover, net losses grew as well – the cost of the formidable worldwide expansion.

Turnover grew over 900% in one year

The group's turnover peaked at 878 million dollar (617 million euro), which is more than ten times as much as in the second quarter of 2010 (87.3 million dollar or 61.3 million euro). This result is also a staggering 36% up from the first quarter of 2011, when turnover was 'only' 645 million dollars (453 million euro). 

 

The number of subscribers also grew – although not as exponentially – and reached 115.7 million at the end of June, almost 40% more than the 83.1 million in March. 23 million subscribers also bought at least one item in the web shop, accumulating 32.5 million deals throughout the quarter. 

Growth creates losses

In order to handle this explosive growth, Groupon has hired more than 1000 people in the last three months, lifting their administrative expenses from 126 to 193 million euro. This led to a net loss growth of 72 million – almost three times as much as in the second quarter of last year, even though the company lowered its marketing costs by 19% compared to the first quarter.

 

While Groupon has been criticised for their commercial practices (it has been claimed that Groupon claims 50% of each transaction – Groupon's own figures suggest their average stake is 19 euro), there is still no need to worry for CEO Andrew Mason as almost 50,000 companies are still on the waiting list. Consumer loyalty is also still on the up, with the average user buying four deals this quarter – compared to 3.8 from January to March and up from only three in 2010's Q2. 

 

Internet deals site Groupon has announced mixed second-quarter results today: alongside a huge growth of turnover, net losses grew as well – the cost of the formidable worldwide expansion.

Turnover grew over 900% in one year

The group's turnover peaked at 878 million dollar (617 million euro), which is more than ten times as much as in the second quarter of 2010 (87.3 million dollar or 61.3 million euro). This result is also a staggering 36% up from the first quarter of 2011, when turnover was 'only' 645 million dollars (453 million euro). 

 

The number of subscribers also grew – although not as exponentially – and reached 115.7 million at the end of June, almost 40% more than the 83.1 million in March. 23 million subscribers also bought at least one item in the web shop, accumulating 32.5 million deals throughout the quarter. 

Growth creates losses

In order to handle this explosive growth, Groupon has hired more than 1000 people in the last three months, lifting their administrative expenses from 126 to 193 million euro. This led to a net loss growth of 72 million – almost three times as much as in the second quarter of last year, even though the company lowered its marketing costs by 19% compared to the first quarter.

 

While Groupon has been criticised for their commercial practices (it has been claimed that Groupon claims 50% of each transaction – Groupon's own figures suggest their average stake is 19 euro), there is still no need to worry for CEO Andrew Mason as almost 50,000 companies are still on the waiting list. Consumer loyalty is also still on the up, with the average user buying four deals this quarter – compared to 3.8 from January to March and up from only three in 2010's Q2. 

 

Questions or comments? Please feel free to contact the editors


Analysis: Will Blokker help Blokker?

16/05/2017

Blokker Holding is executing a very thorough restructuring plan, which will spell the end for an iconic retail group, but is it also the start of something new or merely delaying the inevitable?

Retail and wholesale call for further progress on a Digital Single Market to make Europe a global leader

12/05/2017

(content provided by EuroCommerce) Director-general Christian Verschueren has set out the sector’s positive position ahead of the European Commission’s mid-term review of the EU Digital Single Market.

Ontex off to flying start in first quarter

12/05/2017

Belgian Ontex, mostly known for its baby care products, had a very strong first quarter, with turnover up nearly 25 % and growth for every division.

Wall Street expects stormy retail week

09/05/2017

A number of American traditional retailers will publish their first quarter results this week and no one is expecting good results.

A better working Single Market essential for retailers

05/05/2017

(content provided by EuroCommerce) The European Single Market is very important to retailers, but certain improvements are needed - according to the organisation of European wholesalers and retailers, EuroCommerce.

Archie Norman is Marks & Spencer’s new chairman

05/05/2017

British store chain Marks & Spencer appointed Archie Norman as its new chairman of the board. He will succeed Robert Swannell, who will step down on 1 September after seven years.

Back to top