Poland's Allegro sees earnings growing 4-7% at home in Q4 (updated)

Allegro.eu SA

14/11/2024 05:25

(Adds detail on GMV, fourth-quarter guidance from paragraph 3)
       GDANSK, Nov 14 (Reuters) - Poland's biggest e-commerce
platform Allegro  ALEP.WA  expects its earnings growth to slow
down to 4-7% at home in the fourth quarter, it said on Thursday
after its third-quarter core profit met market expectations.
    Allegro's adjusted earnings before interest, taxes,
depreciation and amortisation (EBITDA) rose 13.5% to 883 million
zlotys ($214.63 million) in the Polish market in the third
quarter, compared with 880 million zlotys expected by analysts
in a company-compiled consensus.
    Gross merchandise value (GMV), an industry metric used to
measure transaction volumes, rose 10.8% on the year to 14.7
billion zlotys in Poland, its biggest market.
    Allegro expects GMV growth to come in an 11-13% range in the
October-December quarter, which includes the peak holiday
shopping season.
    It however sees an adjusted EBITDA loss for its
international operations at 210-230 million zlotys, which would
bring the consolidated figure to a decline of 2-6%.
    Allegro, already a go-to shopping platform in Poland, bulked
up in the region with the acquisition of Mall Group in 2022,
subsequently launching its marketplace platforms in the Czech
Republic, Slovakia and Hungary.
    While the deal extended its footprint and gave it access to
32 million potential customers, its international operations
have so far been a drag on Allegro's profitability as it
transforms Mall legacy business and invests in new marketplaces.
    CEO Roy Perticucci said in a statement that Allegro was
readying the launches in Slovenia and Croatia, which should
arrive in the coming quarters.
($1 = 4.1140 zlotys)

 (Reporting by Anna Pruchnicka; Editing by Himani Sarkar and
Milla Nissi)
 ((anna.pruchnicka@thomsonreuters.com; +48 58 769 65 14;))