MySale Group slips into the red after a year of expansion into Europe and beyond
today unveiled its majority acquisition of a Danish flash sales site, the latest stage in an expansion strategy that has already seen it launch in the UK, the US, Hong Kong and South Korea this year alone.
The MySale flash sales business started in Australia and expanded into South East Asia before earlier this year moving its headquarters to London, where it floated on the London stockmarket, raising £35.2m to finance international expansion and launched UK and US sites. Today, as it reported full-year it said it had bought 60% of invitetobuy.dk, a 150,000 member shopping club, for an undisclosed sum. MySale said the partnership would mean further European expansion.
Jamie Jackson, founder and executive vice-chairman of MySale, said he was delighted to announce the acquisition.
“It marks an important step in our development as a group as we continue to expand our global offering and serves as the springboard for bringing the MySale brand to the Scandinavian market. We have an established position in Asia and are growing in the US and are looking to grow our position in Europe.”
In the full year to June 30, MySale Group reported group revenues up by 23.3% to A$224.3m. Mobile commerce accounted for 56% of sales, up from 51% a year earlier, while average annual revenue per active customer increased by 7.2% to A$280. But while gross profit rose to A$60.4m from A$54.9m last time, costs took the company into the red at the bottom line with losses of A$62.1m, from a profit of A$5.8m last time.