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Groupon shares fall by 26 per cent after poor results

BusinessNews
by ITProPortal, 28 Feb 2013News
Groupon shares fall by 26 per cent after poor results

Chicago-based daily deals firm Groupon reported subpar performance during the last quarter of 2012, sending its market value dropping by more than 25 per cent.

Even though a 30 per cent year-over-year increase in revenues helped the company bring in just over $638 million (£420 million) in Q4 2012, compared to $492 million (£324 million) during the same quarter a year ago, Groupon announced an operating loss of just under $13 million (£8.5 million) for that period.

The company reported lower margins of Groupon Goods sales and higher marketing costs as one of the primary factors behind its dismal performance.

"It was continued volatility in our international business that drove the weaker-than-expected profitability in the quarter," Groupon co-founder and CEO, Andrew Mason, said during the earnings call.

"We still have much work to do to bring our international operations to the same level of those in North America," he added.

Meanwhile, the company also forecasted its Q1 2013 revenue at somewhere around $560 million to $610 million (£369 million to £402 million).

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