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Groupon Stock Price Soars as Lefkofsky Becomes Permanent CEO

iNVEZZ.COM Thursday, August 8th: Groupon yesterday reported a 7 percent increase in second-quarter revenues to $608.7 million, outperforming by an inch the analysts’ forecast of $606.2 million. Eric Lefkofsky was named permanent CEO of the online coupon service company.

Groupon’s stock price gained 19 percent in yesterday’s extended trading following news of Lefkofsky’s appointment, adding up to the 79 percent rally recorded since the beginning of 2013. “It’s a reflection on how investors look at the installation of Eric Lefkofsky as permanent CEO,” commented Thomas White of Macquarie Research.
Groupon’s business in North America showed a 45 percent growth in revenue in the second quarter, contrasted by declines by 24 percent and 26 percent in EMEA and Rest of the World, respectively.

Adjusted earnings per share were at $0.02, matching estimates. The net loss of $7.6 million for the second quarter was smaller than projected. It compared with a profit of $28.4 million for the same period of 2012.
The company expects revenue of between $585 million and $635 million for the third quarter, backed by increased travelling during the summer season and continued marketing investments. This compares with an average analyst forecast of $621.5 million, according to data compiled by Bloomberg.

Eric Lefkofsky, Groupon’s largest shareholder with a 17 percent stake, has been with the company since it was founded in 2008. After founding CEO Andrew Mason was ousted in February, Lefkofsky has served as a co-interim CEO together with Ted Leonsis who was named board chairman yesterday.
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Groupon has been pursuing a strategy of expansion and Lefkofsky has ambitious plans for the company. He is aiming at a dominant position in e-commerce, while developing Groupon’s business with Google for selling a wide variety of products online.
**Goupon’s share price was $8.72 as of 08.08.2013, 13.40 BST.**

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Desislava Yunakova
Desi was one of our financial journalist trainee, someone who's now moved on to be a Strategic Analyst at Whirlpool.

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