Groupon: shows another profitable quarter; shares rise
(CercleFinance.com) - Groupon delivered another profitable quarter on Wednesday, thanks to a cut in marketing spending, which has sent its stock up about 4%.
The Chicago-based company - which is celebrating its 10th birthday - said net income from continuing operations rose to 47.2 million in the third quarter, compared to 3.8 million dollars in the third quarter 2017.
The performance was primarily helped by a 40 million dollars settlement from a patent litigation with IBM, Groupon said.
Marketing expenditure fell by 9% to 92.7 million in the quarter, which offset revenue that was down 7% at 592.9 million dollars, due to lower customer traffic.
CEO Rich Williams said that the daily deals company is advancing its key strategic priorities so as to continue to grow its marketplace.
The shares are currently trading 5.4% higher on the Nasdaq after these comments.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The Chicago-based company - which is celebrating its 10th birthday - said net income from continuing operations rose to 47.2 million in the third quarter, compared to 3.8 million dollars in the third quarter 2017.
The performance was primarily helped by a 40 million dollars settlement from a patent litigation with IBM, Groupon said.
Marketing expenditure fell by 9% to 92.7 million in the quarter, which offset revenue that was down 7% at 592.9 million dollars, due to lower customer traffic.
CEO Rich Williams said that the daily deals company is advancing its key strategic priorities so as to continue to grow its marketplace.
The shares are currently trading 5.4% higher on the Nasdaq after these comments.
Copyright (c) 2018 CercleFinance.com. All rights reserved.