- Prachi Singh |
Rocket Internet has announced that its selected companies have taken further significant steps towards profitability. The aggregate adjusted EBITDA margin improved from a weighted average of negative 19 percent in the first nine months 2016 to negative 12 percent in 9M 2017. The company added that selected companies continued to grow revenue, whilst absolute aggregated EBITDA losses decreased by 48 million euros (56 million dollars).
"In 2017, two of the selected companies successfully went public", said Oliver Samwer, Rocket Internet CEO in a statement, adding, "We will continue to incubate and invest in promising Internet business models and strive to continue to identify attractive investment opportunities."
Global Style Group net revenues rise 26.9 percent
GFG grew net revenue by 26.9 percent to 767 million euros (910 million dollars) and NMV, which includes marketplace sales, reached 793 million euros (941 million dollars), an increase of 29.1 percent over 9M 2016. Operational efficiency improvements, the company said, were the key driver of the adjusted EBITDA margin improvement from negative 17 percent 9M 2016 to negative 10 percent in 9M 2017.
Selected companies in the core sectors food & groceries (HelloFresh), fashion (Global Style Group), general merchandise (Jumia) and home & living (Westwing and Home24) continued to show an increase in aggregate net revenue of 28 percent, reaching 1.85 billion euros (2.20 billion dollars) for the first nine months 2017.
Jumia, the online ecommerce ecosystem in Africa, grew GMV by 32.4 percent year over year to 236 million euros (280 million dollars) in 9M 2017. Q3, Rocket Internet added, saw a strong pick-up in GMV growth of 69.7 percent compared to Q3 2016, resulting in 92 million euros (109 million dollars) GMV in the current quarter.
Online home & living company Home24 accelerated revenue growth to 9.7 percent year over year with 9M 2017 revenue reaching 195 million euros (231 million dollars). Q3 revenue increased by 16.4 percent, resulting in revenue of 63 million euros (75 million dollars) in the current quarter. Home24 also significantly improved its adjusted EBITDA margin from negative 19.5 percent to negative 9.3 percent during 9M 2017, driven also by an improvement in gross margin by 3.3 percentage points to 43.9 percent.
Rocket Internet's consolidated loss for the first nine months improved from 642 million euros (761 million dollars) in 9M 2016 to 44 million euros (52 million dollars).