COUPANG, the largest e-commerce company focused on South Korea, handily beat profit estimates for the fourth quarter, even as sales grew more slowly than expected during the period.
The online retailer’s net revenue rose 21 per cent to US$7.97 billion in the quarter ended Dec 31, compared with an average analyst projection of US$8.08 billion. Operating income was US$312 million, compared with an estimate of US$167.8 million.
The shares gained 3.5 per cent in late trading after closing at US$24.17 in New York on Tuesday (Feb 25). They are up 10 per cent for the year.
Founded in 2010, Seattle-based Coupang had 22.5 million active customers as at September. With initial backing from SoftBank Group, Coupang has invested heavily to popularise overnight delivery in South Korea. It’s since made forays into food deliveries and streaming services, as well as acquiring London-based online luxury company Farfetch in January of last year.
Farfetch was near the break-even point on an adjusted earnings before interest, taxes, depreciation and amortisation basis in the third quarter, chief executive officer Bom Kim said during a post-earnings call in November. He had previously targeted reaching that goal by the end of 2024.
Coupang is seeking growth in new arenas to better compete against Chinese peers such as Alibaba Group Holding’s AliExpress and PDD Holdings’ Temu, which are expanding into South Korea.
Alibaba in December agreed to team up with E-Mart’s e-commerce platform to better compete in the country’s fast-paced online retail sector. AliExpress International and Gmarket are creating a 50-50 joint venture with plans for further investments in a deal that could value the new entity at about US$4 billion. BLOOMBERG
Share with us your feedback on BT’s products and services
