Groupon traded at deep discount

Groupon: Now 80% off!

Groupon’s shares sank to new lows Tuesday as the company’s results fuelled investor concerns about the one-time Web commerce star. The high-profile Internet company has continued to disappoint investors after raising expectations during its market debut.

Groupon’s original high-margin business, which promotes to its members heavily discounted daily deals on behalf of retailers, is showing signs of slowing after reporting 2Q fiscal 2012 results. CEO Andrew Mason said results in the company’s daily-deals business slowed as poor economic conditions in Europe led people to stay away from high-cost offers such as laser-hair removal. This has pushed the company to expand into new areas such as consumer product sales and merchant services through the new business lines known as ‘Groupon Goods,’ which have much lower margins. But CFO Jason Child noted that while the Goods business may be less profitable, it presents a vast opportunity.

Revenue from its international business fell 4% in the second quarter from the first. The international business accounted for about 54% of total revenue in the second quarter. For the three months ended June 30, Groupon posted net income of $28.4 million, or $0.04 a share, compared with a loss of $107.4 million, or $0.35 a share, in the second quarter of 2011. Revenue increased to $568.3 million from $392.6 million.

Groupon (GRPN : NASDAQ : US$5.51), Net Change: -2.04, % Change: -27.02%, Volume: 62,155,101

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