Sunday, July 02, 2017

Fave bought over Groupon business in three countries

Recently, the Fave group bought over Groupon in Indonesia, Malaysia and Singapore. Fave is owned by Joel Neoh, who was formerly head of Groupon Asia Pacific.

Why did Groupon sell its business to Fave?

I found that Groupon is still incurring a loss. Here is the latest result.

This year, during the first half of the year, Groupon had a net loss of $104 million, or 18 cents per share. Groupon revenue in the first half of 2016 reached $1.49 billion. In Nasdaq trading today, Groupon shares closed at $3.78. In the past year, Groupon stock had been down 71 percent.Jul 27, 2016

I am surprised that Groupon is still losing money. I thought that they should be able to make money, as they are just selling coupons. Maybe their expenses are too high, or maybe the full time executives are drawing high salaries?

I wonder how Fave can turn the business around, and make a profit? I guess cutting expenses is one step.

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