Czechs are getting the American Groupon back on its feet

Published: 10.05.2024 Related countries:  U.S.A. U.S.A.

The American discount coupon provider Groupon, which has a significant Czech footprint, announced financial results for the first quarter.

The company's revenues broke the downward trend and grew after eight years. The American Groupon, whose main shareholder is the Czech financial group Pale Fire Capital with a roughly twenty percent stake led by investors Dušan Šenkypl and Jan Barta, presented financial results for this year's first quarter.

These results pleasantly surprised the markets in many respects. The company, listed on the prestigious Nasdaq stock exchange, announced that its revenues in the first three months of the year reached $123.1 million, approximately 2.8 billion Czech korunas. This represents a year-on-year increase of 1.2 percent. The revenue growth also exceeded market estimates, which had predicted a value of $117.3 million.

Although Groupon is still at a loss, the company has been successful in gradually reducing it over several quarters. For the first quarter of the year, the loss amounted to $11.5 million, while in the same period last year it was $28.6 million. The company has also been successful in cutting costs, more quickly than the market expected.

The financial results for the first quarter exceeded the most optimistic assumptions, and consolidated revenues have returned to growth for the first time since 2016. The company also reported a positive adjusted EBITDA for the fourth consecutive quarter.