Groupon’s American “Slevomat” Led by Czech Investors Surprises Markets with Q1 Results

The American “Slevomat” Groupon, whose main shareholder is the Czech financial group Pale Fire Capital, led by investors Dušan Šenkyple and Jan Barta, with about one fifth, presented its economic results for the first quarter this year. And they pleasantly surprised the markets in many ways.

The company listed on the prestigious American stock exchange Nasdaq announced that its sales in the first three months of the year reached the level of 123.1 million dollars, ie about 2.8 billion crowns. This represents a year-on-year increase of 1.2 per cent. Association about she announced in a press release. Meanwhile, sales growth beat market estimates of $117.3 million.

Although Groupon is still in loss, the company has been leading its gradual reduction for several quarters. It was $11.5 million in the first quarter of the year, compared to $28.6 million in the same period last year. The company is also successfully cutting costs, faster than the market expected.

“We got off to a good start to the year with results in the first quarter that exceeded our expectations. Our consolidated sales have returned to growth for the first time since 2016, and we are reporting positive adjusted EBITDA for the fourth quarter in a row,” said Dušan Šenkypl, CEO of Groupon, on the financial results.

Adjusted EBITDA is a financial indicator that provides a more accurate estimate of a company’s profitability. Unlike standard EBITDA, which includes earnings before interest, taxes, depreciation, and amortization, adjusted EBITDA reflects the steady level of profit a company can expect in the future time.

The company’s adjusted EBITDA came in at $19.5 million in the first quarter, significantly beating analysts’ estimates of $13.3 million. At the same time, it turned from a loss last year to a profit.

At the same time, the company announced that Šenkypl will be its permanent CEO. Šenkypl had been in the role on an interim basis since March 2023, when he relinquished his day-to-day duties at Pale Fire Capital, to lead the company through a deep transformation.

“I am honored to have confidence from the board to continue as CEO. Our business is back on its feet and we are moving in the right direction. I am confident that we can resume growth and fulfill our mission to be the best place for local experiences and services,” said Šenkypl upon his resignation.