×
4 005
Fashion Jobs
L'OREAL GROUP
l'Oreal Luxe Multibrand Retail Account Manager
Permanent · London
COTY
National Account Manager
Permanent · London
TK MAXX
Loss Prevention Officer-tk Maxx High Street Kensington-Full Time
Permanent · London
HARRODS
Uniformed Security Officer - Thatcham Distribution Centre
Permanent · THATCHAM
HARRODS
Senior CRM Retention Executive
Permanent · LONDON
JOHN LEWIS
Section Manager Stock And Inventory – Nights
Permanent · BLETCHLEY
SELFRIDGES
HR Administrator (Part-Time)
Permanent · ENDERBY
SELFRIDGES
Digital Personal Shopping Content Manager
Permanent · LONDON
EVERLAST GYMS
General Assistant - Everlast Fitness
Permanent · POOLE
EVERLAST GYMS
General Assistant - Everlast Gyms
Permanent ·
ZARA
Zara High Wycombe - General Manager
Permanent · HIGH WYCOMBE
NEXT
Operations Manager - Liverpool Aintree Retail Park
Permanent · LIVERPOOL
HEAD OFFICE
Senior Finance Analyst, Commercial Finance
Permanent · BRACKNELL
JOHN LEWIS
Section Manager Stock And Inventory – Nights
Permanent · BLETCHLEY
HOUSE OF FRASER
Loss Prevention Supervisor - House of Fraser
Permanent · READING
EVERLAST GYMS
General Assistant - Everlast Fitness
Permanent · CAMBRIDGE
BERSHKA
New Position - Bershka Operations Manager - Stratford
Permanent · LONDON
AVON
Internal Audit Manager Natura &CO
Permanent · LONDON
COTY
Trade Marketing Manager
Permanent · London
JOHN LEWIS
Section Manager Customer Delivery Hub
Permanent · LONDON
FLANNELS
Beauty Brand Manager – Pat Mcgrath Labs
Permanent · ROTHERHAM
CLAUDIE PIERLOT UK
Stock Contoller - Permanent - Selfirdges London
Permanent · LONDON
By
Reuters
Published
Sep 22, 2016
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Rocket Internet trims losses, increases debt buyback

By
Reuters
Published
Sep 22, 2016

German e-commerce investor Rocket Internet  reported progress on Thursday in cutting losses at its main start-ups with three set to generate profits by the end of 2017, while its shares were lifted by a plan to buy back convertible bonds.


archiv


Rocket Internet shares, which have been hit by concerns about mounting losses and cuts to the valuation of some of the company's leading start-ups, were up 10.4 percent by 0920 GMT, but were still down a quarter on the year.

Finance chief Peter Kimpel said Rocket was still working towards a goal of a public listing for one of its 10 main start-ups in food delivery, fashion and home furnishings in the coming months, but said timing would depend on market conditions.

Rocket was forced to pull the listing of its HelloFresh recipe ingredients business last year, but markets have become more receptive recently to technology flotations, with rivals such as Takeaway.com and Blue Apron preparing to go public.

Along with HelloFresh, Rocket's other most likely candidates for a listing are seen as food site Delivery Hero and emerging market ecommerce firm Global Fashion Group (GFG), which reported last week it had managed to stem its losses.

Rocket did not publish any figures on Thursday for Delivery Hero, the second-biggest in its portfolio, but Kimpel said it would give more information in due course. He also declined to comment on a recent funding round for the business.

"They are doing what they are supposed to be doing. Bringing companies to profit," said Berenberg analyst Sarah Simon, who has a "buy" rating on the stock.

Kimpel said a decision to spend up to an additional 85 million euros on convertible buybacks by Sept. 30, 2017 was taken because Rocket now felt it had "excess capital".

Rocket, which listed on the Frankfurt stock exchange in 2014, saw its shares tumble in July 2015 when it said it would sell 550 million euros worth of convertible bonds. In February, it said it would buy back up to 150 million euros of them.

Rocket reiterated a target set a year ago to turn three of its 10 main start-ups profitable by the end of 2017, pointing to smaller losses at home furnishings site Westwing and at GFG.

Aggregate first half revenue rose 32 percent to 1.043 billion euros ($1.17 billion), compared to the 34 percent gain achieved in the first quarter as the rapid pace of expansion at HelloFresh, Rocket's biggest investment, slowed.

Neil Campling, tech analyst at Northern Trust Capital Markets, said that was a major concern: "It would appear that the focus on improving profitability (or rather, less losses) is dragging on growth."

Earlier this month, Rocket reported a first-half consolidated loss of 617 million euros, mainly due to impairments on its GFG stake. On Thursday, it also said that figure included writedowns on its stake in Latin American ecommerce site Linio.

Rocket said it had decided against participating in a funding round for Linio involving Swedish investor Kinnevik , which cut the valuation of the business to 150 million euros from a previous 370 million.

($1 = 0.8927 euros)
 

© Thomson Reuters 2023 All rights reserved.