Groupon shares slump on disappointing revenue
Groupon Inc Cl A
Last Updated at 22 Sep 2017, 19:59 GMT *Chart shows local time| price | change | % |
|---|---|---|
| 4.56 |
+
+0.03
|
+
+0.66
|
Shares in US voucher firm Groupon have slumped 26% after revenue figures reported on Monday evening disappointed Wall Street.
Although the company swung to profit in the three months and reported a jump in revenue, analysts had expected more.
As a result, some brokerage houses downgraded on the stock on Tuesday.
The company's shares have now lost almost three-quarters of their value since launching on the stockmarket in November last year.
'Deteriorating business'
On Monday, Groupon reported net income for the second quarter of $28.4m (£18.1m), against a loss of $107.4m a year ago.
Revenue rose 45% to $568.3m, and would have been higher but for a $32.4m hit on exchange rates, the company said.
It also said it now had 38 million active customers, an increase of 65% on a year earlier.
However, analysts highlighted that billings fell from the previous quarter
"A sequential decline implies a rapidly deteriorating core business - ie the daily deals business - and Groupon needs to act fast to fill up this hole with new initiatives," said Mark Mahaney at Citi Investment Research.
