SoftBank-sponsored quarterly losses fell by 180%
South Korea’s Coupang, an e-commerce group backed by SoftBank, reported losses that increase quarterly despite the Covid-19 pandemic despite its record sales.
The company said Wednesday that its net loss for its first quarter fell 180 percent to $ 295 million a year, while revenue was $ 4.2 billion at $ 4.2 billion. The loss has been slightly worse than analysts forecast.
The disappointing results for Coupang were the first after the online trader high-end stock market debut In New York, in March, it was valued at more than $ 80 billion.
The initial public offering, which in 2014 was the largest foreign e-commerce company by Chinese e-commerce company Alibaba, helped boost SoftBank’s net profit. To reach a record $ 46 billion At the last event of the Japanese technology team.
However, Coupang’s situation has worsened since its bright IPO.
The group’s valuation, which at one point reached $ 118 billion, has fallen to $ 62 billion and dead bundle of his messengers and warehouse workers.
Coupang attributed the loss to $ 87 million in cost compensation and increased hiring and investment. The company has spent a lot of time building a logistics network of 100 filling centers in 30 cities with a fleet of more than 15,000 delivery drivers. Coupang says it delivers 100% of its orders almost the same day or the next day.
The company said its active customers or those who bought goods through the Coupang for at least a quarter rose 21 percent to 16 million. The group said spending per active customer increased by 44 percent year-on-year to $ 262 a year.
Coupang, founded in 2010, is South Korea’s largest and most competitive e-commerce player.
The company predicted growth of $ 206 billion by 2024. According to research firm Euromonitor, South Korea’s e-commerce sector is likely to grow by 11 percent this year to $ 116 billion.
But the company’s growth has been clouded deaths of eight workers, including two subcontracts, attributed to overwork by unions and politicians.
Coupang, its other investors, including venture capital firm Sequoia Capital and U.S. asset manager BlackRock, deny responsibility for the deaths. The company said they have officially recognized only one death from the job.
Shares in Coupang’s New York shares fell 2.5 percent before the results were announced on Wednesday.
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