Nov 30 (Reuters) – Poland’s largest e-commerce platform Allegro (ALEP.WA) reported on Wednesday that third-quarter core profit rose 13.9%, driven by a recovery in its main home market.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at PLN 537.3 million ($119.16 million), beating analysts’ average estimate of PLN 496 million in a company-compiled consensus.
Domestically, its adjusted EBITDA rose 24.6% year-on-year to PLN 587.6 million, compared with a 1.5% decline in the second quarter as Allegro rolled out a monetization program to manage delivery costs.
A higher share of high-margin ad revenue also helped, Allegro said.
“Customers are spending less in the face of economic uncertainty and inflation, but they know they can find great value shopping with us,” CEO Roy Perticucci said in a statement.
Allegro added that it had made progress on the turnaround of the mall business it acquired this year, helping to stem losses and improve gross merchandise value (GMV).
Still, Allegro acknowledged on Monday that the value of its investments in Mall and WE|DO more than halved, taking a $2.3 billion write-down, impacting its net results in light of rising capital costs and a cost-of-living crisis.
($1 = PLN 4.5091)
Reporting by Anna Pruchnicka; Editing by Kim Cohill
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