Groupon’s Irish arm sees losses hit €134m

The Irish unit of international online firm Groupon recorded pre-tax losses totalling €134m in its first year of operation here.

Last June, the US-based Groupon announced the creation of a further 20 jobs at its Irish base to the dozen already in place. The firm provides a platform for people to search and discover businesses providing competitive prices.

New accounts filed by Groupon International Ltd to the Companies Office show that start-up costs were a factor behind the €134m loss.

The directors state that they view the results as satisfactory.

The figures show amortisation of the firm’s intangible assets totalling €102m was the main cost incurred last year. Revenues in the period between Jul 2011 and Dec 2012 totalled €12.8m.

Addressing the firm’s going concern status, the directors state: “Based on the willingness and ability of Groupon Inc to continue to support the company, the directors have concluded it is appropriate to prepare the accounts under the going concern basis.”

The firm received a capital contribution of €77m from its parent last year. It had a shareholders’ deficit of €56m at year end. The firm’s cash totalled €9.27m. It recorded an operating loss of €129m last year arising from cost of sales totalling €140.8m. Net interest charges of €5m increased the loss to €134m.