Groupon thrives as shoppers catch the mobile bug

21 Feb 2014

The rise and rise of mobile shopping, particularly during the hectic Christmas shopping season, was a factor in daily deals player Groupon posting total billings of US$1.6bn for the fourth quarter and US$5.8bn for the full year.

Groupon, which is in the process of creating 20 new jobs at a software hub in Dublin, reported revenue increased 20pc to US$768.4m in the fourth quarter 2013, compared with $638.3m in the fourth quarter 2012.

North American revenue growth of 18pc and EMEA growth of 43pc was offset by a 15pc decline in the rest of the world.

Gross profit increased 6pc, to US$378.2m in the fourth quarter 2013, compared with US$355.8m in the fourth quarter 2012.

“Our record performance in the quarter was led by strength in goods, as shoppers increasingly looked to Groupon to fill their holiday needs,” said Eric Lefkofsky, CEO of Groupon.

“Our mobile business continued to gain momentum as our worldwide mobile transaction mix increased more than 10pc in the quarter, to nearly 50pc in December.

“With another 9m downloads this quarter, we now have nearly 70m app downloads to date,” Lefkofsky said.

M-commerce image via Shutterstock

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years