Groupon Reports Light Quarterly Growth, Aquires Korean Deal Website

Groupon (Nasdaq:GRPN) lessened its losses during the third quarter, with a net loss of $2.6 million, compared with $3 million a year earlier according to quarterly earnings announced Thursday, Nov. 7. The daily-deal website's Q3 revenue grew 4.7 percent to $595.1 million from $568.6 million a year ago, largely driven by mobile growth.

"Mobile adoption continued to increase in Q3, reflected in our record 9 million app downloads," CEO Eric Lefkofsky said in a statement reports The Wall Street Journal. "We're pleased with our progress, but we still have work to do as we transform the business from our daily deal email roots to a full e-commerce marketplace."

The company said that more than half of its North American transactions came from mobile in September. To date, more than 60 million people have downloaded Groupon apps worldwide.

Groupon also revealed late Thursday that it will acquire Ticket Monster, a Korean e-commerce company, for at least $100 million in cash and up to $160 million in stocks. Ticket Monster, founded in 2010, is a subsidiary of LivingSocial with yearly billings amounting to more than $800 million. The deal needs approval from Korean regulators and is expected to close in the first half of 2014.

Groupon says the purchase of TicketMonster is in line with the company's expansion efforts and provides Groupon with a platform to sell more products and travel packages in Korea.

"Ticket Monster is a perfect fit for Groupon as we continue to transition our business globally from a flash sale email model to a mobile commerce marketplace," said Lefkofsky in a statement.

For more, see:
This Bloomberg article
This Groupon press release

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