Groupon Returns to Profitability but Disappoints on Revenue

Groupon could reduce their marketing costs further in the third quarter, but will have to contend with stagnating revenues. Between July and September, the company recorded earnings of 569 million U.S. dollars. This represents an increase of 32% when compared to the previous year, but is just slightly more than the second quarter of 2012. Despite that profit performance, it looks anything but positive for the deal of the day website. In the time period between April and June, the company operated in the black before slipping into the red in the last quarter. As if that wasn’t enough, the gross revenue from the sale of so-called deals is declining for the second quarter in succession. Investors have reacted sensitively to the bad numbers. With a share price of 3.30 U.S. dollars at the close of trading, Groupon’s paper is considered junk value.