Groupon shares collapsed against the background of weak quarterly report

Securities operator coupon sites Groupon at auction in New York on Monday suffered a significant price losses after the company announced quarterly results well below expectations amid a substantial drawdown sales in the European market, where consumer activity on the background of the debt crisis reduced.

According to Groupon, in the second quarter, its sales rose 45% to 568.3 million dollars, against 575.3 million dollars expected by analysts. The operating profit of 8 cents per share, however, this figure is also included 4 cents per diluted share, from the ownership of Groupon business in China. Analysts expected a profit of Groupon at 3 cents per share.

International sales, which account for more than half of sales Groupon, were cut by weakness in the European economy, acknowledged Groupon CFO Jason Child. Analysts say that the Internet company is becoming increasingly difficult to find new markets and maintain the growth trend, as consumers have become boring order of the concept of daily coupon codes.

Edward Woo, an analyst Ascendiant Capital Markets, said that Groupon increasing pressure from the Global Economy and the operator becomes more susceptible to fluctuations in exchange rates of the world, and they do not always turn out to be profitable Groupon.

At the end of trading on Monday the company's shares have fallen in value by 21% to 5.95 dollars per share, despite the fact that prior to the publication of quarterly data they grew in value by 1.5% to 7.55 dollars. Since its November IPO securities companies have fallen in price by 63% and the company's market capitalization fell to 4.88 billion dollars, while the year and a half ago, Google offered to buy Groupon for $ 6 billion.

In the second quarter net income of 28.4 million, or 4 cents per share, compared to a net loss of U.S. $ 107.4 million a year earlier. International revenues grew 31% to 308.2 million dollars in the company's report says that Groupon growth slowed, mainly because of currency fluctuations. "We have some problems in Europe as well as half of our business is outside the United States, any strengthening of the dollar affects the performance," - says Child.

He also noted that the cost of Groupon for marketing in the second quarter decreased by 58% to 88.4 million, against U.S. $ 212.7 million a year earlier. In the current third quarter revenues of the operator will be 580-620 million dollars, compared with the estimate of a 607.4 million dollars.