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October 28, 2016 IT News

Groupon suffered $ 38 million deficit in Q3 and acquired LivnigSocial

Groupon, US group purchase founder, announced its Q3 2016 earnings by September 30 on Wednesday. The earnings showed that Groupon’s revenue in Q3 reached $720.5 million, increased by 1% from $713.6 million yoy. It posted the net deficiency to common shareholders of $ 38 million, compared by $27.6 million on the same period in last year. Groupon addressed that it signed agreements with LivingSocial that Groupon would acquire all its tradable shares.

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The Gross billings of Groupon in Q3 declined by 2% yoy, up to $ 1.43 billion while it was $ 1.47 billion last year. Excluding the affect of exchange rate fluctuation, its worldwide gross billings declined by 1%, while North American increased by 6% yoy.The gross billings from European, Middle East and EMEA regions declined by 1% yoy, from which other regions around the world declined by 24%.

Its revenue in Q3 was $ 720.5 million, increased by 1% yoy.Factoring out fluctuating exchange rates, Groupon obtained 2% increase in revenue in Q3. Its revenue in North Aermcia increased by 4% yoy in Q3.While revenue of Europe, Middle East and EMEA declined by 1%, and 19% decline to other regions of its global markets.

Groupon suffered a 5% decline of worldwide selling items in Q3, down to 49 million. While the selling items in North America increased by 45 yoy.

The billings of North Amercia increased by 10% in Q3. Its active users also increased by 1.2 million. Groupon already obtained 29.1 million active users in North Amercia by September 30, 2016.

Groupon quit some oversea markets, reducing to 15 markets. It still had 27 markets last in Q2. It planed to quit some more markets in the near future.

Groupon signed agreements with LivingSocial on October 24 that it would acquire all latter’s tradable shares. This deal will be complished by the beginning of November,2016.

LivingSocial was the major rival of Groupon in North America e-commerce platforms. LivingSocial’s value of assessment once reached $ 6 billion when it financed in 2011. In March, LivingSocial announced to cut half of its workforce.

LivingSocial transfterred its business focus to discout service in hotel and credit business. Acquiring LivingSocial would help Groupon to obtain more users as LivingSocial offers service for local merchants.

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