LA PLAINE SAINT-DENIS, France, July 28, 2016 /PRNewswire/ --
Showroomprivé, an innovative European player in the online private sales industry, specializing in fashion, has published its results for the first half of 2016, ended 30 June.
- Strong growth in revenues and profitability, driven by France which outperformed the e-commerce and retail markets
- Net revenues: €240.3m (+20.5%)
- Of which France Internet revenues: €205.5m (+27%)
- EBITDA: €15.7m (6.6% of net revenues, +38 basis points)
- A bigger and more engaged community of members
- +1.6 million new members in H1 2016
- 2 million buyers (+14% vs. H1 2015) of which 0.5 million new buyers
- Average revenues per buyer 6% higher than in H1 2015
- Success of the Group's strategy on mobile, which now represents 75% of traffic and 57% of revenues
- New innovations to further improve the user experience
- Significant improvement in profitability and deployment of multi-local strategy in international markets. Exclusive negotiations for the acquisition of Saldi Privati (Italy)
- Strengthening of the Group's organisation
=> All targets for 2016 have been confirmed
KEY FIGURES FOR H1 2016
(EUR million) H1 2015 H1 2016 %Growth Net revenues 199.4 240.3 20.5% Total Internet revenues 194.0 234.4 20.8% EBITDA 12.3 15.7 27.9% EBITDA as % of revenues 6.2% 6.6% +38 pts Adjusted net income* 5.1 8.0 56.5% Net cash position 32.8 82.8 152.5%
*Net income adjusted for costs related to the free share allocation programme as part of the IPO
Commenting on these results, Thierry Petit and David Dayan, co-founders and co-CEOs of Showroomprivé stated: "The very strong first half performance allows us to confirm our targets for 2016. We are continuing to win market share in France and to outperform the e-commerce and retail sectors. Our international operations are developing in line with our roadmap with already significant improvements in margins and acquisitions prospects. We remain focused on innovation and quality, with the goal of continuously improving the site functionality as well as payment and delivery options. We offer our members and brands partners products and services that match their needs ever more closely."
KEY HIGHLIGHTS FROM H1 2016
In the first half of 2016, Showroomprivé continued its strong revenues and profitability growth, driven by the implementation of a strategy centred on four priorities: the improvement of product offering; innovation; quality of service and client experience; and the rolling-out of a multi-local organisation for its international operations.
1. Continued strong and profitable growth
- The Group's revenues grew by 20.5%, from €199.4m in H1 2015 to €240.3m.
- The first half saw balanced growth in all business indicators, with strong increases in the number of members, buyers, orders and average revenues per buyer.
- The 5% increase in the average basket size reflected the continuous improvement in Showroomprivé's offering.
- The Group saw strong trends in France, which represents a powerful growth engine, with considerable potential still to be exploited.
- EBITDA grew by nearly 28%, faster than revenues growth. It reaches €15.7m, with an EBITDA margin representing 6.6% of revenues, a significant increase compared to H1 2015.
- The first half also brought a significant improvement in Showroomprivé's profitability in international markets, with a break-even EBITDA.
2. New functionalities to further improve the user experience
- In March 2016, the Group launched an innovative search engine: this allows members to rapidly identify sales offering products which correspond to their needs.
- Showroomprivé will soon introduce a product recommendation function, which will suggest to members articles most likely to be of interest to them.
- The introduction of Infinity (unlimited free delivery service offered on a €20 annual subscription basis) continues to boost the frequency of orders and the size of the customers' average basket size.
- In mid-July Showroomprivé launched Apple Pay in France, having been the first and only French e-commerce platform to incorporate the Android Pay service in the UK earlier in the first half.
3. Further enhancements to the offering, serving the &abcz;digital woman&abcz;
- The Group strengthened its leisure offering by adding a ticketing section in partnership with France Billet, France's leading ticket sales network for shows, sports and leisure events.
- The SHOP IT! feature offers exclusive deals in brand partners' stores thanks to a system of coupons or deferred payment.
- Sales of dematerialised services (subscriptions, partners offers, etc.) have helped strengthen the offering to our members and represent an important lever of growth.
- Showroomprivé plans to build on the positive feedback for its #CollectionIRL private label brand and is constituting a dedicated team.
4. Showroomprivé continues its multi-local international development
- Showroomprivé has continued to roll-out its innovations in international markets, with the launch of Infinity and Single Basket in Spain and Portugal to help build member engagement in these markets.
- The Group has stepped up its presence in its main markets with strong potential:
- In Spain, appointing a Country Head who is in the process of building a substantial sales team to develop its operations.
- It plans to develop operations in Italy in a similar way, with the forthcoming recruitment of a Director for its Milan office, who will be responsible for accelerating the deployment of a local sales team.
- Lastly, Showroomprivé has entered into exclusive negotiations with the Banzai Group for the acquisition of Saldi Privati, the 2nd largest player in the Italian private sales sector in terms of turnover. This transaction, which remains subject to a number of conditions, would be a major step in the development of Showroomprivé in Italy.
- The Group is therefore preparing the ground for sustainable and profitable international growth over the medium term.
 Company re-elaboration based on Osservatorio eCommerce B2c Netcomm - Politecnico di Milano and Bureau van Dijk database
5. Showroomprivé continues to strengthen its organisation
- The Group has recruited an Operations Director and a Logistics Director who will carry-out a number of projects aiming at bringing continued improvements in the quality of its services, reduction in delivery times and easier returns.
- In the third quarter, Showroomprivé also opened a third sale production centre in Roubaix, to help support its growth (a hub for receiving samples, photo shoots, retouching and online launches)
INITIATIVES FOR THE SECOND HALF
- Showroomprivé will continue to pursue the strategy set out when 2015 results were announced:
- Continued improvements in the quality of services for customers and brands, particularly in the logistics area (delivery, returns).
- Maximise the client experience, with the forthcoming reshaping of the Showroomprivé website and mobile apps.
- Pursue the deployment of the multi-local strategy, strengthening sales teams in Spain, Italy and other target markets.
- At the beginning of October, the Group will celebrate its 10th anniversary. This event will be a highlight in terms of communication and will help boost Showroomprivé's visibility amongst its members, brand partners and prospective customers.
CONFIRMATION OF THE GROUP'S OBJECTIVES FOR 2016
- Revenues of between €525m and €555m, representing an increase of between 19% and 25% compared to the revenues in the fiscal year of 2015
- EBITDA margin at Group level of between 5.8% and 6.2% of revenues in 2016, representing an increase of between 40 and 80 basis points compared to the fiscal year of 2015.
- EBITDA margin in France of around 8.5% in 2016, representing an increase of around 40 basis points compared to the EBITDA margin in France in the fiscal year of 2015
- Level of operational capex of between 1.3% and 1.5% of revenues
- Ratio of cash flow from operational activities before tax and after operational capex to EBITDA higher than 100%, excluding one-off items
DETAILED COMMENTARY FOR EACH TYPE OF INDICATORS
(EUR million) H1 2015 H1 2016 %Growth Internet revenues France 162.4 205.5 26.5% International 31.6 28.9 -8.4% Total Internet revenues 194.0 234.4 20.8% Other revenues 5.4 5.9 9.2% Net revenues 199.4 240.3 20.5% (EUR million) Q2 2015 Q2 2016 % Growth Net revenues 103.7 123.0 18.6%
The 21% increase in Group revenues to more than €240m was driven by France, where net internet revenues rose by 27%, largely outperforming growth in the e-commerce and retail sectors.
International revenues were down 8%, reflecting the current transitional phase that Group has entered into, caracterized by temporary reduction in marketing spending and the strengthening of local teams in these markets.
In the second quarter, the Group had revenues of €123m, representing growth of 19% compared to 2015.
Key performance indicators
H1 2015 H1 2016 %Growth Total Members (in millions) 21.9 26.1 19.2% Cumulative Buyers (in millions) 4.8 6.0 25.3% Buyers (in millions) 1.8 2.0 14.1% Number of Orders (in millions) 5.3 6.0 14.6% Revenue per Buyer 110.5 117.0 5.9% Average Number of Orders per Buyer 3.0 3.0 0.3% Average Basket Size 36.9 38.9 5.4% Share of Revenues from Mobile 47% 57% 10 pts
Revenues growth in the first half was driven by growth both in the number of customers and in the average revenue per buyer.
The Group gained 1.6 million new members, taking total members to 26 million on 30th June.
The number of buyers in the first half exceeded 2 million, an increase of 14% vs. the same period last year.
Average revenue per buyer was much higher than in the same period in 2015 (+6%) to reach €117. This was due primarily to a 5% increase in the average basket size compared to H1 2015, taking it to nearly €39. This trend demonstrated the attractiveness of the Group's offering and the growing loyalty of its members.
The Group's growth was underpinned by the mobile segment, which now accounts for 75% of traffic and 57% of net revenue, an increase of 10 points vs. last year. Buyers on the mobile platforms generate on average 1.4 times as many orders as those on the internet (approximately 5 orders per year).
(EUR million) H1 2015 H1 2016 %Growth France 14.2 15.7 10.6% EBITDA France as % of revenues 8.5% 7.4% -103 pts International -1.9 0.0 n/a EBITDA International as % of revenues -6.0% 0.1% +610 pts Total EBITDA 12.3 15.7 27.9% Total EBITDA as % of revenues 6.2% 6.6% +38 pts
EBITDA grew by 28%, faster than revenues growth. It reaches €15.7m, with an EBITDA margin representing 6.6% of revenues, a significant increase on H1 2015 (+38 basis points compared to H1 2015).
This increase in profitability was the result of a significant improvement in margins at international operations, where EBITDA was at break-even, and continued strong EBITDA margin in France, at 7.4% of revenues, despite a slight dip relative to 2015.
EBITDA growth was driven by:
- strong sales growth,
- combined with significant operational leverage, given that the operational cost structure consists largely of fixed costs, and
- the temporary reduction in marketing expenditure in international markets.
(EUR million) H1 2015 H1 2016 %Growth Net revenues 199.4 240.3 20.5% Cost of goods sold -118.5 -144.8 22.2% Gross margin 80.9 95.5 18.0% Gross margin as % of revenues 40.6% 39.7% -84 pts Marketing 7.8 8.4 7.3% As % of revenues 3.9% 3.5% -43 pts Logistics & fulfilment 47.1 56.0 18.9% As % of revenues 23.6% 23.3% -32 pts General & administrative expenses 15.5 17.7 15.4% As % of revenues 7.8% 7.4% -43 pts Total Opex 70.5 82.1 16.5% As % of revenues 35.3% 34.1% -118 pts Current operating profit 10.5 13.4 28.3%
Gross profit was €95m (up 18%), equivalent to 39.7% of revenues, compared to 40.6% in H1 2015. This slight decrease in margin versus last year was due to:
- The development of new product categories (household, etc.) which have lower gross margins than fashion products and represented 47% of internet sales, compared to 42% in H1 2015.
- Growth in delivery fee revenue was lower than sales growth, following the launch of the Single Basket and the Infinity service.
Operating costs were reduced significantly (by -118 basis points), from 35.3% to 34.1% of net revenues, with a positive impact across all types of cost thanks to the strong operational leverage from the cost structure, continued tight control of costs and a temporary reduction in international marketing expenditure. In more detail:
- Marketing expenditure, as a percentage of revenue, fell from 3.9% to 3.5%, reflecting the current transitional phase that Group has entered into in international markets, caracterized by temporary reduction in marketing spending in these countries, which was partially offset by the increased marketing effort in France.
- Logistics and fulfilment costs also grew by less than revenue, falling from 23.6% to 23.3% of revenues thanks to economies of scale.
- General and administrative costs are mainly fixed costs and also fell sharply as a percentage of revenues, from 7.8% to 7.4%, reflecting the particular attention paid to cost controls.
Other financial information
(EUR million) H1 2015 H1 2016 %Growth Current operating profit 10.5 13.4 28.3% Amortisation of intangible assets recognized upon business reorganisation -0.4 -0.4 0.0% Other operating income and expenses -0.7 -10.0 n/a Operating profit 9.4 3.0 -67.7% Net finance costs -0.2 -0.2 52.9% Other financial income and expenses 0.1 0.2 192.1% Profit before tax 9.3 3.0 -67.7% Income taxes -4.2 -2.3 -46.4% Adjusted net income* 5.1 8.0 56.5% Net income 5.1 0.7 -86.1%
*Net income adjusted for costs related to the free share allocation programme as part of the IPO
Other operating income and expenses (€10.0m) can be broken down as follows:
- €2.2m in non-recurrent charges mostly in the form of residual costs related to the IPO and restructuring costs.
- €7.8m in costs relating to the free share allocation programmes as part of the IPO. These charges had a limited impact on the Group's cash (of around €1.4m).
The Group's tax charge fell by 46% to €2.3m.
As a result, net income adjusted for costs relating to free share allocations rose by 57% to €8.0m for the period
Cash flow items
(EUR million) H1 2015 H1 2016 Cash flows from operating activities -7.9 -13.5 Net cash flows from investing activities -2.2 -3.6 Net cash flows from financing activities -0.7 0.3 Net change in cash -10.9 -16.8
Net change in cash is down compared with H1 2015, at -16.8 million euros.
Cash flows from operational activities amount to -13.5 million euros mostly due to an increase of the working capital requirements vs last year (impact of -€7.8m) which is related to the growth of the business, as well as €3.6m of one-off costs. The cyclicity of the business causes negative cash flows from operating activities during the fiorst half which are compensated during the second semester.
Capital exependitures are up at €3.6m, and in slight increase as a percentage of the revenues from 1.1% to 1.5%. Cash flows from investing activities were used by the Group for investment in tangible and intangible assets, in particular on capitalized research and development costs, and computer equipment.
The Board of Directors of SRP Groupe held on July 28th, 2016, reviewed and approved the consolidated financial statements of the Group as of June 30, 2016.
Analyst and investor conference (in English)
David Dayan, Chief Executive Officer
Thierry Petit, Deputy Chief Executive
Nicolas Woussen, Chief Financial Officer
Thomas Kienzi, Head of Investor Relations
Date: Thursday 28 July 2016
18:30 Paris time - 17:30 London time - 12:30 New York time
Journalists will only be able to listen to the conference
Webcast link to listen live and for the replay:
Dial-in to listen to the conference LIVE
From France: +33 (0)1 76 77 22 42
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From the US: +1 646 254 3369
Access code: 4502602
This document contains only summary information and does not purport to be comprehensive.
This document may contain forward-looking information and statements about the Group and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words &abcz;believe,&abcz; &abcz;expect,&abcz; &abcz;anticipate,&abcz; &abcz;target&abcz; or similar expressions. Although the Group believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of the Group's securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Group, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in filings with the Autorité des Marchés Financiers made or to be made by the Group. The Group undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.
Revenues for the 3rd quarter 2016 : 20th October 2016 (after market close)
Showroomprive.com is an innovative European player in the online private sales industry, specialized in fashion. Showroomprivé offers a daily selection of 1 500 brand partners on its mobile app or online. It has over 26 million members in France and in eight of its European country markets. Since its launch in 2006, the company has enjoyed quick and profitable growth.
Showroomprivé is listed on the Euronext Paris (code: SRP), and reported gross turnover of over 600 million euros in 2015, corresponding to net sales of 443 million euros, up 27% versus the previous year. The company employs more than 800 people.
For more information : http://showroomprivegroup.com
Thomas Kienzi, Head of Investor Relations
+33 1 49 46 05 67
Adeline Pastor, Head of Communications
+33 1 76 21 19 46
Morgane Le Gall, Tristan Bourassin
+33 1 53 96 83 83
PROFIT AND LOSS STATEMENT
(EUR thousands) 2014 2015 %Growth Net revenues 349,791 442,832 26.6% Cost of goods sold -202,929 -263,679 29.9% Gross margin 146,862 179,153 22.0% Gross margin as % of revenues 42.0% 40.5% Marketing -21,929 -26,897 22.7% As % of revenues 6.3% 6.1% Logistics & fulfilment -84,949 -102,650 20.8% As % of revenues 24.3% 23.2% General & administrative expenses -26,828 -29,861 11.3% As % of revenues 7.7% 6.7% Total Opex -133,706 -159,408 19.2% As % of revenues 38.2% 36.0% Current operating profit 13,156 19,745 50.1% Amortisation of intangible assets Recognized upon business reorganisation -783 -783 0% Other operating income and expenses -2,408 -8,106 236.6% Operating profit 9,965 10,856 8.9% Net finance costs -144 -137 -4.9% Other financial income and expenses 52 -106 -303.8% Profit before tax 9,873 10,613 7.5% Income taxes -4,003 -5,470 36.6% Net income 5,870 5,143 -12.4% Total EBITDA 15,531 23,723 52.7% Total EBITDA as % of revenues 4.4% 5.4%
(EUR thousands) H1-15 H1-16 %Growth Net revenues 199,419 240,330 20.5% Cost of goods sold -118,499 -144,826 22.2% Gross margin 80,920 95,504 18.0% Gross margin as % of revenues 40.6% 39.7% Marketing -7,798 -8,371 7.3% As % of revenues -3.91% -3.48% Logistics & fulfilment -47,105 -55,990 18.9% As % of revenues -23.6% -23.3% General & administrative expenses -15,549 -17,709 13.9% As % of revenues -7.8% -7.4% Total Opex -70,452 -82,070 16.5% As % of revenues -35.3% -34.1% 1.2% Current operating profit 10,467 13,434 28.3% Amortisation of intangible assets Recognized upon business reorganisation -391 -391 0.0% Other operating income and expenses -689 -10,014 -98.5% Operating profit 9,387 3,029 -67.7% Net finance costs -153 -234 52.9% Other financial income and expenses 63 184 192.1% Profit before tax 9,297 2,979 -68.0% Income taxes -4,240 -2,274 -46.4% Net income 5,057 705 -86.1% Total EBITDA 12,311 15,742 27.9% Total EBITDA as % of revenues 6.2% 6.6%
KEY PERFORMANCE INDICATORS
2014 2015 %Growth CUSTOMERS METRICS Total Members (in thousands) 20,178 24,568 21.8% France 13,893 16,787 20.8% International 6,285 7,781 23.8% Cumulative Buyers (in thousands) 4,303 5,517 28.2% France 3,536 4,520 27.8% International 767 997 30.0% Buyers (in thousands) 2,357 2,867 21.7% France 1,922 2,389 24.3% International 435 479 10.2% Revenue per Buyer (EUR) 143.7 151.1 5.2% France 148.7 154.9 4.2% International 121.3 132.1 8.9% ORDERS Total orders (in thousands) 9,108 11,748 29.0% France 7,728 10,043 29.9% International 1,380 1,705 23.5% Average Orders per Buyer (in number of orders) 3.9 4.1 6.0% France 4.0 4.2 4.6% International 3.2 3.6 12.0% Average Basket Size 37.2 36.9 -0.8% France 37.0 36.8 -0.4% International 38.2 37.1 -2.8%
H1-15 H1-16 %Growth CUSTOMERS METRICS Total Members (in thousands) 21,940 26,143 19.2% France 15,040 17,985 19.6% International 6,900 8,158 18.2% Cumulative Buyers (in thousands) 4,822 6,042 25.3% France 3,938 4,960 26.0% International 884 1,082 22.4% Buyers (in thousands) 1,756 2,003 14.1% France 1,447 1,721 19.0% International 309 282 -8.9% Revenue per Buyer (EUR) 110.5 117.0 5.9% France 112.3 119.4 6.3% International 102.2 102.6 0.4% ORDERS Total orders (in thousands) 5,258 6,027 14.6% France 4,394 5,267 19.9% International 864 760 -12.0% Average Orders per Buyer (in number of orders) 3.0 3.0 0.3% France 3.0 3.1 2.0% International 2.8 2.7 -3.7% Average Basket Size 36.9 38.9 5.4% France 37.0 39.0 5.4% International 36.5 38.0 4.2%
(EUR thousands) 2014 2015 Non-current assets Goodwill 81,576 81,576 Other intangible assets 27,726 28,861 Tangible assets 14,141 14,833 Other non-current assets 1,256 1,180 Total non-current assets 124,699 126,450 Current assets Inventory 41,691 57,068 Accounts receivable 14,925 24,014 Deferred tax assets 2,744 3,058 Other current assets 19,388 27,952 Cash and cash equivalents 47,730 102,982 Total current assets 126,478 215,074 Total assets 251,177 341,524 Long term financial debt 3,625 2,962 Obligations to personnel 89 116 Deferred taxes 9,239 9,883 Total non-current liabilities 12,953 12,961 Short-term financial debt 1,005 916 Accounts payable 75,362 100,108 Provision for risks and charges 795 993 Other current liabilities 30,346 38,499 Total current liabilities 107,508 140,516 Total liabilities 120,461 153,477 Total shareholders' equity 130,716 188,047 Total liabilities and shareholders' equity 251,177 341,524
(EUR thousands) H1-15 H1-16 Non-current assets Goodwill 81,576 81,576 Other intangible assets 27,900 29,276 Tangible assets 13,891 14,906 Other non-current assets 1,181 1,101 Total non-current assets 124,548 126,859 Current assets Inventory 46,055 62,111 Accounts receivable 15,158 29,131 Deferred tax assets 823 3,215 Other current assets 17,352 27,494 Cash and cash equivalents 36,853 86,200 Total current assets 116,241 208,151 Total assets 240,789 335,010 Long term financial debt 3,225 2,499 Obligations to personnel 89 131 Deferred taxes 9,417 9,550 Total non-current liabilities 12,731 12,180 Short-term financial debt 840 916 Accounts payable 61,882 84,632 Provision for risks and charges 387 2,688 Other current liabilities 29,135 38,564 Total current liabilities 92,244 126,800 Total liabilities 104,975 138,980 Total shareholders' equity 135,815 196,031 Total liabilities and shareholders' equity 240,789 335,010
(EUR thousands) 2014 2015 Net income for the period 5,870 5,143 Adjustments for non-cash items 3,956 8,640 Cash flow from operations before finance costs and income tax 9,826 13,783 Elim of accrued income tax expense 4,003 5,470 Elim of cost of net financial debt 144 137 Impact of change in working capital 13,091 -303 Cash flow from operating activities before tax 27,064 19,087 Income tax paid -7,195 -5,141 Cash flow operating activities 19,869 13,946 Acquisitions of property plant & equipment and intangible assets -4,920 -6,348 Changes in loans and advances -217 -79 Disposal of fixed assets 78 19 Net cash flows from investing activities -5,059 -6,408 Increase in share capital and share premium reserves 0 48,888 Issuance of indebtedness 0 0 Repayment of borrowings -507 -1,037 Net interest expense -144 -137 Net cash flows from financing activities -651 47,714
(EUR thousands) H1-15 H1-16 Net income for the period 5,058 705 Adjustments for non-cash items 2,333 11,211 Cash flow from operations before finance costs and income tax 7,390 11,916 Elim of accrued income tax expense 4,240 2,274 Elim of cost of net financial debt 153 51 Impact of change in working capital -17,167 -25,014 Cash flow from operating activities before tax -5,384 -10,773 Income tax paid -2,541 -2,764 Cash flow operating activities -7,925 -13,537 Acquisitions of property plant & equipment and intangible assets -2,234 -3,612 Changes in loans and advances 0 0 Disposal of fixed assets 0 34 Net cash flows from investing activities -2,234 -3,578 Increase in share capital and share premium reserves 0 847 Issuance of indebtedness 0 0 Repayment of borrowings -565 -463 Net interest expense -153 -51 Net cash flows from financing activities -718 333
BRIDGE OF TOTAL GROSS INTERNET SALES
TO IFRS NET REVENUES
(EUR thousand) 2013 2014 2015 H1-15 H1-16 Total gross Internet sales(1) 327,600 458,745 591,674 262,582 316,470 VAT(2) -51,056 -72,223 -93,515 -38,059 -49,098 Revenue recognition impacts(3) -35,053 -51,647 -68,900 -32,512 -35,369 Non-Internet revenue and other(4) 15,368 14,916 13,573 7,373 8,327 Net revenues (IFRS) 256,859 349,791 442,832 199,419 240,330
(1) Corresponds to the total amount billed to buyers during a given period.
(2) Value added tax is applied on every sale. The applicable value-added tax rate depends on the country where the buyer is located.
(3) Accounting adjustments for revenue recognition as described in Note 1.13 of the Group's annual consolidated financial statements, including: (i) timing differences due to the fact that certain criteria (e.g., delivery) must be fulfilled before recognizing revenue; (ii) the impact of reimbursements granted for cancellations and returns, which are recognized as a reduction of the revenue; and (iii) the effect of presenting certain travel sales on a net basis where the Group acts as an agent.
(4) "Non-internet revenue and other"; corresponds primarily to revenues generated from offline sales to wholesalers, including offline re-sales of returned internet sales items.
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