Boston, MA, 11/21/2013 (wallstreetpr) – USA-based global e-commerce giant Groupon, Incorporated (NASDAQ:GRPN) posted good third-quarter revenues. While revenue increased by 5% to about $595.1 million in the third quarter of 2013, compared with $568.6 million for the corresponding 2012 quarter, Groupon’s gross profit stood at $359.6 million in the third quarter 2013, as against $386.8 million in the third quarter 2012, registering a 7% gross profit decline. Operating income at $13.8 million for the third quarter of 2013 fell about 45.6% below the $25.4 million a year ago.
Gross billings increased 10% globally to $1.34 billion in the third quarter 2013, compared with $1.22 billion in the third quarter 2012. North America growth of 20% and EMEA growth of 12% was offset by a 13% decline in Rest of World.
The daily deals firm recently acquired Korea-based Ticket Monster for about $260 million from its Asian competitor, Korea-based Living Social, with a view to diversifying its mobile commerce operations in Asia. Groupon, Incorporated (NASDAQ:GRPN) has further plans to acquire greater stake in Living Social Korea. The global e-commerce giant also announced the launch of its Freebies option in the USA, with ambitious plans to expand abroad by 2014. The product, a new marketplace category on its ecommerce portal encompassing money-saving options such as digital coupons, promotion codes and giveaways among others, supports a diverse brand range that includes over five thousand brands and will enable online shoppers to benefit during purchases at online stores of their favourite brands.
The stock tanked on news filtering in through mandatory SEC filings that Chairman Ted Leonsis, its co-founder Brad Keywell and most notably, CEO Eric Lefkofsky’s divested shares in excess of 4.5 million last week for approximately $4.7 million. Despite this sell-off, Lefkofsky remains the technology firm’s largest shareholder, with over 108 million shares still in his possession.
Such selling by insiders led to nervous selling by other investors also. Groupon, Incorporated (NASDAQ:GRPN)’s stocks fell 6.11% to $9.22 in their latest NASDAQ trade close on November 20, from a previous close of $9.82. The shares were trading around the closing figure, with a minor jump to $9.23 during after hours.