Groupon names Lefkofsky CEO; income exceeds estimates
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SAN FRANCISCO (Reuters) – Groupon Inc on Wednesday pronounced it named halt Chief Executive Eric Lefkofsky to lead on a some-more permanent basis, and reported better-than-expected income for a second quarter. Its batch rose 19 percent in after-hours trading.
The association also certified a $300 million share repurchase program.
Lefkofsky, who was named halt CEO in February, delivered aloft income for his initial full entertain in charge, and shares strike a 52-week high after hours during $10.35.
“I consider a news about installing Lefkofsky played a large part,” pronounced Tom White, an researcher during Macquarie Research. “Investors have been really tender by a swell he’s done given being done halt conduct and improving metrics quite in a North America business.”
Lefkofsky has pushed brazen a new mobile-centric plan during Groupon. The association pronounced that 50 percent of a North American exchange came by smartphones and tablets, contra 30 percent a year ago.
The Chicago-based association reported quarterly income of$608.7 million compared with $568.3 million a year ago. Analysts on normal approaching $606.2 million in revenue, according to Thomson Reuters I/B/E/S.
With a core daily deals business indication in high decrease over a past year, Groupon in new months has re-invented itself as a some-more normal e-commerce business that sells long-term deals by a smartphone app. Shares of a association have risen roughly 80 percent given Jan 1.
Groupon enjoyed a record entertain for income in North America, a home market. Gross billings, or a sum value of purchased products and services – of that a association takes a cut – rose 30 percent in that region, outpacing a 10 percent enlargement rate overall.
Revenue in a United States and Canada grew 45 percent, offsetting a 24 percent slip in Europe, a Middle East and Africa and a 26 percent tumble everywhere else.
“North America continues to see clever expansion and we done good swell in EMEA that flipped to certain sum billings growth” a second quarter, Chief Financial Officer Jason Child told Reuters on Wednesday.
“We’re now changeable a concentration to a rest of a world.”
Groupon posted a second entertain net detriment of $7.6 million, or $0.01 per share, compared with a year ago distinction of $28.4 million, or 4 cents a share.
Excluding one-time items, it warranted 2 cents a share, turn with analysts’ expectations.
Reporting by Gerry Shih; Editing by Steve Orlofsky and Carol Bishopric
Our Standards: The Thomson Reuters Trust Principles.
