Wednesday 22 November 2017

Groupon Irish unit has €10.26m pre-tax profit

The Irish-based unit of Groupon enjoyed pre-tax profits of €10.26m in 2014 Photo: PA
The Irish-based unit of Groupon enjoyed pre-tax profits of €10.26m in 2014 Photo: PA

Gordon Deegan

The Irish-based unit of international ecommerce marketplace Groupon recorded a profit for the first time here in 2014 when enjoying pre-tax profits of €10.26m.

New accounts just filed with the Companies Office show that US firm more than doubled the size of its Dublin workforce in 2014, going from 31 to 72.

The unit - which owns various intellectual property rights and provides them to Groupon affiliates around the world for a royalty fee - posted the pre-tax profits after sustaining pre-tax losses of €62m in 2013.

Revenues increased by 44pc, going from €75m to €108.2m, the accounts show.

Groupon was only launched in November 2008, but by 2014 it enjoyed global revenues of $3.19bn.

However, Groupon International Ltd's revenues' derived from the country of Ireland are comparatively small though increasing rapidly.

The figures show that the company's Irish revenues more than doubled in 2014, going from €171,000 to €398,000.

The vast proportion of revenues were generated in the 'rest of Europe', accounting for €101m of revenues, while €6.7m of revenues were generated in 'rest of world'.

To facilitate its growth here, the firm received a cash injection of €12.1m in 2013.

Underlining its commitment to its Irish base, Groupon International Ltd has also signed two long-term leases on properties in Dublin, including a data centre.

The firm's profit in 2014 arose mainly from the increase in revenues but also non-cash amortisation costs dropping sharply from €80.75m to €2.2m.

The directors view the results of the company as satisfactory.

Staff costs totalled €5.7m. The firm also provides marketing services and customer service support.

Irish Independent

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