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


EU and Japan agree in principle on trade deal

20/07/2017

(content provided by EuroCommerce) After more than four years of negotiation, the EU and Japan have reached a political agreement in principle on an Economic Partnership Agreement during Japanese Prime Minister Abe’s visit to Brussels. 

Register for the RetailDetail Day 2017 now

20/07/2017

Starting today, you can register for the annual RetailDetail Day, in Mechelen on 21 September. The widely varied program will bring together reputable retailers and digital innovators.

Ensuring your packaging is not past its prime

18/07/2017

By the end of 2017, almost a quarter of everyone on the planet will be over the age of 50. This represents a huge opportunity for retailers but they must be wise, particularly in regard to their packaging choices, if they want to engage this demographic.

Over 100 exhibitors at Shoptalk Europe

18/07/2017

(advertorial) Shoptalk Europe is the big, new event for retail and ecommerce innovation. It covers the transformational trends, technologies and business models reshaping how consumers discover, shop and buy in an age of digital disruption. 

European consumer remains upbeat

18/07/2017

Research firm GfK’s recent study shows that the European consumer trust keeps growing, but there are vast differences depending on the country.

Reckitt Benckiser evades taxes through the Netherlands

13/07/2017

British Reckitt Benckiser, which owns brands like Durex, Calgon and Nurofen, has evaded hundreds of millions of euros in taxes through the Netherlands according to Oxfam Novib after it studies the company’s financial results.

Back to top