Tuesday 16 January 2018

Irish unit of Groupon in €134m loss

Gordon Deegan

The Irish unit of daily coupon website Groupon recorded pre-tax losses totalling €134m in its first year of operation in Ireland.

The e-commerce company said start-up costs were a factor behind the €134m loss.

"As it was the first period of trading, there was considerable expenditure in set-up costs and acquisition of intellectual property," the directors' report said.

Amortisation of the firm's intangible assets totalling €102m was the main cost incurred last year. Sales in the second half of last year totalled €12.8m.

The directors reported that the company has sought and obtained a letter of support from US-based parent Groupon Inc.

"Based on the willingness and ability of Groupon Inc to continue to support the company, the directors have concluded it is appropriate to prepare the accounts under the going concern basis," the report added.

The Irish firm received a capital contribution of €77m from its parent last year. The firm had a shareholders' deficit of €56m at year end.

The Irish unit provides Groupon companies around the world with access to use its intellectual property for a royalty fee.

The operating loss of €129m last year came as the company reported the cost of sales at €140.8m. Staff costs last year totalled €484,000.

The figures showed that the firm's revenues were made up of €229,000 in Ireland; €10.7m in "rest of Europe" and €1.9m in "rest of world".

Irish Independent

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