Groupon losses widen as revenues grow

31 Oct 2014

Daily deals site Groupon’s recently released third-quarter 2014 figures show an increase to US$21.2m in net losses, despite revenues rising more than 25pc to US$757.1bn.

On the back of the results, the Wall Street Journal is reporting that Groupon may sell a stake in South Korean subsidiary Ticket Monster, less than 10 months after buying it.

Eric Lefkofsky, chief executive of Groupon, has said that the company had “hired financial advisers to help it potentially sell part of Ticket Monster,” according to the report

“They have a chance to be the biggest e-commerce player in Korea,” said Lefkofsky. Ticket Monster’s growth “has accelerated dramatically; it doesn’t seem imprudent to evaluate all the opportunities we have.”

Despite the hit to profits, revenues continue to rise at the daily deal giant. Earlier this month Groupon announced 200 new jobs in Dublin at its new Engineering and Marketing Centre. Under Lefkofsky, Groupon has diversified significantly, and only bought Ticket Monster for $260 million in January from LivingSocial Inc.

“We had another record quarter, with worldwide billings increasing 39pc and reaching their highest level ever,” said Lefkofsky. “We also made significant progress in our strategy to become the leading mobile commerce destination.”

This year Groupon has released products as varied as a tablet-based checkout register for small businesses, a listings service, and a service for cash back for buying certain groceries.

Gordon Hunt was a journalist with Silicon Republic