The daily deal operator posts a Q1 operating income of nearly $40 million.
Zak Stambor , Managing Editor
For the first time ever, Groupon Inc.’s operations didn’t cause the daily deal operator to post a quarterly operating loss. The daily deal operator today announced it had a $39.6 million operating income in the first quarter.
For the first quarter ended March 31, Groupon reported:
“We are pleased to report a record quarter that demonstrates our progress in unlocking the opportunity in local commerce for merchants and customers worldwide," says Andrew Mason, the company’s CEO.
Groupon’s operating profit comes at an opportune time, as the daily deal operator has seen its stock price plummet, while also facing scrutiny domestically and abroad. Groupon was forced to restate its fourth quarter earnings after the company’s auditors, Ernst & Young LLP, found that the company had a material weakness in its internal controls, which means the internal controls Groupon has in place to prevent financial statement irregularities are ineffective. Groupon also recently came under fire from the U.K.’s Office of Fair Trading, a regulatory agency, which claimed that Groupon U.K. subsidiary MyCityDeal Ltd. offered deals that were misleading and breached consumer protection regulations.