LA PLAINE SAINT-DENIS, France, February 27, 2017 /PRNewswire/ --
Showroomprivé, a leading European online fashion retailer, focusing on Digital Woman, has published its results for the fiscal year 2016, ended 31 December.
- Solid growth with resilient margins and cash flow generation
- Net sales of €540m, up 21.9% vs. 2015 with an acceleration of growth in Q4
- €28.3m EBITDA
- EBITDA margin stable at 5.4% excluding Saldi Privati (5.2% reported)
- €35.5m of free cash flow generation, up 36% vs 2015
- Group's international strategy: a successful acceleration
- Rebound of organic growth of international operations in second semester: +8.6%, to reach over €105m in revenues1
- Massive investment in senior local teams: 43% of international brands
- Acquisition of Saldi Privati, #2 flash sales player in Italy
- More than ever a mobile first company
- Record-high rates from mobile platforms: traffic 77% and sales 55%
- More than 10 million app downloads
- Showroomprivé ranked 6th among French e-commerce platforms in terms of audience2
- Accelerating growth: doubling revenues by FY2020
- 2017: Revenues between €690m and €720m
- 2020: c. €1.1Bn in revenues by 2020 with an EBITDA margin exceeding 7.5%
- Reinforcement of our proposition to digital women: agreement for acquisition of Beauteprivee
- French leading flash sales player in the Beauty segment with close to €20m revenues in 2016
1 On a pro-forma basis, including 12-month Saldi Privati contribution in 2016
2 Source: Mediamétrie rankings - November 2016
KEY FIGURES FOR 2016
(EUR million) 2015 2016 %Growth Net revenues 442.8 539.7 21.9% Total Internet revenues 433.2 525.4 21.3% EBITDA 23.7 28.3 19.1% EBITDA as % of revenues 5.4% 5.2%** -19bps Adjusted net income* 9.2 13.0 42.0%
*Net income adjusted for costs related to the free share allocation programme as part of the IPO
** 5.4% excluding Saldi Privati
Commenting on these results, Thierry Petit and David Dayan, co-founders and co-CEOs of Showroomprivé stated: "We are proud to report very strong results for this first full fiscal year as a listed company. We have successfully sustained a 20%+ growth rate thanks to our continued focus on offering our members and brand partners the best platform through innovation and leading customer experience. We have delivered resilient margins with significant investments in delivery, pricing, marketing and staffing, all of which support today's growth and will fuel tomorrow's revenues. Following Saldi Privati's acquisition and the reinforcement of local teams, the Group is entering 2017 with a strengthened international structure and a clear roadmap to pursue its development. This very strong performance allows us to set new ambitious financial targets for 2017 and beyond, with the objective to double our revenues and reach over €1Bn by 2020."
2017-2020: MORE AMBITION ON A NEW MEDIUM ROADMAP…
Showroomprivé has defined a new medium term roadmap and growth trajectory for 2020. The group targets to generate c. €1.1Bn in revenues by 2020 with a new trajectory aiming at accelerating its topline growth, and maximizing EBITDA growth in absolute terms.
This new trajectory is consistent with Showroomprivé's drive to secure the success of its international expansion.
SHOWROOMPRIVÉ'S NEW STRATEGIC ROADMAP YIELDS TO THE FOLLOWING GUIDANCE:
- 2017 MILESTONES
- Revenues between €690m and €720m (+28% to 33% growth)
- EBITDA margin above 6% excluding Saldi Privati
- Cash flow conversion higher than 100%
- 2020 TARGETS
- Doubling revenues to reach c. €1.1bn
- EBITDA margin exceeding 7.5%
- Cash flow conversion higher than 100%
…WITH A STRONG AND CLEAR STRATEGY
Showroomprivé is confident in its ability to leverage its assets and built its strategy on four pillars:
#1 ATTRACTIVE VALUE PROPOSITION: offer the best deals to members and holistic solutions to brand partners to continue to recruit and drive engagement of brands and members.
#2 OPERATIONAL EXCELLENCE: further improve the shopping experience, delivery time and quality of service to boost loyalty.
#3 UNPARALLELED INNOVATION: keep on developing innovative solutions and features such as personnalisation, loyalty program or drop shipment, to differentiate from competition and lead the industry.
#4 INTERNATIONAL DEVELOPMENT: pursue the successful multi-local strategy with a double focus on adapting the offering to local needs and reinforcing the local teams to lay the ground for future growth.
2016: AGAIN OUTPERFORMING THE E-COMMERCE MARKET
In 2016, 10 years after its creation, Showroomprivé continued to significantly outperform the e-commerce market with over 20% of growth and resilient margins, whilst keeping on investing to fuel tomorrow's growth and reinforcing its international platform. The acquisition of Italy's #2 flash sales player Saldi Privati also contributed to strengthen the Group's international profile.
#1 STRONG SUCCESS IN RECRUITING AND DRIVING LOYALTY OF MEMBERS AND BUYERS
A fast growth of the members' community with over 3.7m new members and 1.2m new buyers. This shows the attractiveness of Showroomprivé's value proposition and its strong ability to convert members into buyers by stimulating purchase intents. Showroomprivé also benefited from an increasingly engaged and loyal community, as recurring buyers represented 75% of total revenues and the average revenue per buyer was up 5.8% to circa €160.
#2 STRENGTHENED OFFERING TO SERVE THE DIGITAL WOMAN
The Group continued to develop its offering by recruiting new brands and boosting business with its existing brand partners, in order to offer always more attractive deals and a wider assortment to its customers: over 700 new brand partners in 2016 and a 14% increase in business volumes with its recurring brand partners. Showroomprivé reinforced its fashion positioning through several initiatives in 2016 such as the creation of a dedicated team for its private label brand #CollectionIRL.
The group also expanded its offering through the sales of dematerialized services, which represent an important growth driver. In addition, Showroomprivé launched a new ticketing section, in partnership with France Billet, France's leading ticket sales network for shows, sports and leisure events, and reinforced its travel offering.
Last, Showroomprivé signed an agreement for the acquisition of Beauteprivee. With revenues close to €20m in 2016, and an EBITDA margin close to 7%, Beauteprivee is the French leader in online flash sales of beauty and well-being products. This transaction, which remains subject to usual conditions and is expected to close by the end of Q1 2017, would further expand the Group's offering to the Digital Woman.
#3 PURSUED INNOVATION TO FURTHER IMPROVE THE COMMUNITY ENGAGEMENT
In September, Showroomprivé successfully launched a new version of its website and mobile apps to offer members and brand partners an even more intuitive and attractive interface, to access Showroomprivé's sales events.
Moreover, the Group introduced a product recommendation function, which suggests to members articles most likely to be of interest to them. It also launched Apple Pay in France, after having been the first and only French
e-commerce platform to offer the Android Pay service in the UK, and a search engine earlier in H1.
#4 MORE THAN EVER A MOBILE FIRST COMPANY
With an app ranked #6 amongst French e-tailers, and over 10 million downloads (+2.2 million vs. last year), Showroomprivé's growth continues to be increasingly supported by the mobile segment: 77% of traffic and 55% of total revenues vs. 48% in 2015. Leveraging on this trend, Showroomprivé benefits from a higher engagement rate of its buyers who generate on average 50% more orders on mobile than on desktop.
#5 INTERNATIONAL: DEPLOYMENT AND FIRST POSITIVE RESULTS FROM THE MULTI-LOCAL STRATEGY
This year marked a turning point in Showroomprivé's international development. The Group successfully delivered on its plan to become closer to customers' needs in each market, and strengthen their engagement and loyalty. In line with its multi local strategy, the Group opened local sourcing offices in Spain, Italy and Germany and launched Infinity and the Single Basket feature in Spain and Portugal. Additionally, Showroomprivé boosted its marketing investments in its international markets in H2.
This strategy has already borne fruit with a strong rebound of growth at the end of the year: international revenues increased organically by +8.6% in H2 and were stable over the year.
The acquisition of Italy's #2 flash sales player Saldi Privati (completed in Q4) also contributed to the Group's development strategy, enabling it to record pro-forma international revenues of more than €105m, which represent more than 18%1 of pro-forma total revenues.
 Including 12-month Saldi Privati contribution in 2016
(EUR million) 2015 2016 %Growth Internet revenues France 370.0 453.7 22.6% International 63.2 71.7 13.4% Total Internet revenues 433.2 525.4 21.3% Other revenues 9.6 14.3 48.9% Net revenues 442.8 539.7 21.9% (EUR million) Q4 2015 Q4 2016 % Growth Net revenues 153.1 194.6 27.1%
The 21.9% increase in Group revenues to €540m was mainly driven by France, where net internet revenues rose by 22.6%, largely outperforming growth in the e-commerce (c. 2x growth of France e-commerce market) and retail sectors.
International revenues were up by 13.4%, thanks to the contribution of Saldi Privati in the last 2 months of the year (€8.4m). Net sales on a comparable perimeter would be stable, with the solid organic growth in H2 offsetting the decrease in H1 that was due to the transitional phase that the Group experienced over this period.
In the fourth quarter, the Group had revenues of €194.6m, representing a growth of 27.1% compared to 2015 (+21.6% excluding Saldi Privati). This acceleration was driven by both France and our international operations, and is the result of all the initiatives we launched during the year in all our geographies.
KEY PERFORMANCE INDICATORS1
2015 2016 %Growth Total Members (in millions) 24.6 28.3 15.1% Cumulative Buyers (in millions) 5.5 6.8 22.5% Buyers (in millions) 2.9 3.2 12.8% Number of Orders (in millions) 11.7 13.6 15.8% Revenue per Buyer 151.1 159.9 5.8% Average Number of Orders per Buyer 4.1 4.2 2.7% Average Basket Size 36.9 38.0 3.0% Share of Revenues from Mobile 48% 55%
1 Excluding Saldi Privati
Revenues growth in 2016 was driven by both an increase in the number of buyers and the average revenue per buyer.
The Group continued to experience a strong momentum for attracting new members and converting them to buyers, with 3.7 million new members and 1.2 million new buyers in 2016.
The number of buyers in 2016 exceeded 3.2 million, an increase of close to 13% vs. last year.
Average revenue per buyer continued to significantly increase (+6%) to reach €160. This was driven by both a 3% rise in the average basket size, taking it to over €38 and 3% increase of the average number of orders per buyer (4.2x vs. 4.1x last year). These trends demonstrate the attractiveness of the Group's offering and the growing loyalty of its members, as well as the positive impact of initiatives such as Infinity and the single basket.
The Group's growth remains underpinned by the mobile segment, which now accounts for 77% of traffic and 55% of net revenues, which represents an increase of 7 points vs. 48% last year. Buyers on the mobile platforms generate on average 50% more orders as those on desktop (approximately 5 orders per year).
(EUR million) 2015 2016 %Growth France 30.9 35.1 13.8% EBITDA France as % of revenues 8.1% 7.5% -63pt International -7.2 -6.9 3.8% EBITDA International as % of revenues -11.3% -9.6% +172pt Total EBITDA 23.7 28.3 19.1% Total EBITDA as % of revenues 5.4% 5.2% -19pt
EBITDA increased by 19.1% to reach 28.3 million euros. Excluding Saldi Privati, it grew more than revenues to reach 28.8 million euros (+21.5% vs. 2015) with an EBITDA margin of 5.4%, while in parallel we significantly invested during the year in delivery, pricing and teams to boost engagement of our members and support our future growth.
Profitability in France reached 7.5% in 2016. In other markets, it improved significantly as a percentage of sales but remains negative due to significant marketing and pricing investments, creation of local sourcing teams and Saldi Privati integration.
(EUR million) 2015 2016 %Growth Net revenues 442.8 539.7 21.9% Cost of goods sold -263.7 -332.0 25.9% Gross margin 179.2 207.7 15.9% Gross margin as % of revenues 40.5% 38.5% Marketing -26.9 -25.7 -4.5% As % of revenues 6.1% 4.8% Logistics & fulfilment -102.7 122.1 18.9% As % of revenues 23.2% 22.6% General & administrative expenses -29.9 -36.9 23.5% As % of revenues 6.7% 6.8% Total Opex -159.4 -184.7 15.8% As % of revenues 36.0% 34.2% Current operating profit 19.7 23.0 16.6%
Gross margin went up by 16% to reach 207.7 million euros, representing 38.5% of net revenues compared to 40.5% in 2015.
The gross margin was negatively impacted by product mix evolution (c. 35bps) and consolidation of Saldi Privati (c.15bps).
In addition, it was also impacted by the rebalancing of part of the marketing budget into conversion and loyalty initiatives such as: (i) the roll-out of Infinity program and the single basket (c. 100bps impact), and some price investments (c. 50bps). These investments designed to fuel the Group's future growth totaled c.150bps at gross margin level and were almost entirely offset by lower marketing expenditures.
Retreated from those latter impacts, the Group's gross margin would actually have reached 40%, roughly in line with last year performance.
Control of the operating costs allowed offsetting the lower growth margin rate. Thanks to a strong discipline, they fell from 36.0% to 34.2% as a percentage of revenues. In more details:
- Marketing expenditure as a percentage of revenues decreased by 130bps resulting from targeted efforts in France where the Group's brand awareness is already at high levels, a temporary slowdown of marketing investments in international markets in H1 and the rebalancing of part of the marketing budget towards price investments and delivery initiatives.
- Logistics & fulfillment costs also decreased as a percentage of revenues by 60bps despite significant investments to strengthen teams, develop infrastructures and improve quality of service: for instance, the Group inaugurated a new 2,000m2 center of sales production in Roubaix (North of France) in March 2016.
- Last, general & administrative expenses remained roughly stable as a percentage of revenues as economies of scale were partially offset by (i) the strengthening of the sourcing teams, (ii) an increase in IT spending and (iii) the strengthening of support functions. These additional costs are mainly fixed and allow us to shape our structure to support our future needs.
Other financial information
(EUR million) 2015 2016 %Growth Current operating profit 19.7 23.0 16.6% Amortisation of intangible assets recognized upon business reorganisation -0.8 -0.8 2.7% Other operating income and expenses -8.1 -19.6 142.0% Operating profit 10.9 2.6 -76.0% Net finance costs -0.1 -0.7 Other financial income and expenses -0.1 0.6 Profit before tax 10.6 2.5 -76.5% Income taxes -5.5 -2.7 -50.9% Adjusted net income* 9.2 13.0 42.0% Net income 5.1 -0.3 -104.9%
*Net income adjusted for costs related to the free share allocation programme as part of the IPO
Other operating income and expenses (€19.6 m) can be broken down as follows:
- €6.3m in non-recurrent charges corresponding mostly to residual costs related to the IPO, restructuring costs, advisory costs and costs related to the acquisition and integration of Saldi Privati
- €13.3m 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 €2.5m).
The Group's tax charge fell by 50.9% to €2.7m. As a result, net income adjusted for costs relating to free share allocations rose by 42% to €13m for the period.
Cash flow items
(EUR million) 2015 2016 Cash flows from operating activities 13.9 32.8 Net cash flows from investing activities -6.4 -39.9 Net cash flows from financing activities 47.7 1.1 Net change in cash 55.3 -6.0 Recurring cash from operating activities after capex and before tax(1) 26.1 35.5
1Cash flow from operating activities after capex and before tax retreated from non-recurring operating elements excluding employee non-cash share-based payments
Recurring cash after capex and before tax reached €35.5m (corresponding to 126% of EBITDA) demonstrating the Group's repeated ability to generate more cash than EBITDA.
Cash flows from operating activities increased sharply from €13.9m to €32.8m driven by the EBITDA growth and a €13.6m cash inflow from the change in working capital.
Net cash flows from investing activities decreased from €-6.4m to €-39.9m due mainly to the acquisition of Saldi Privati (€31m). Capital expenditures increased from €6.4m to €8.4m and remained relatively stable as a percentage of sales.
As a result, the Group cash position went down by €6m in 2016 and reached €97.0m as of 31/12/2016.
The Board of Directors of SRP Groupe held on February 27th, 2017, reviewed and approved the audited consolidated financial statements of the Group as of December 31st, 2016.
Analyst and investor conference (in English)
David Dayan, Chief Executive Officer
Thierry Petit, Deputy Chief Executive
Nicolas Woussen, Chief Financial Officer
Thomas Kienzi, Deputy Chief Financial Officer
Date: Monday 27 February 2017
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 74
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Access code: 1087287
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 "believe", "expect", "anticipate", "target" 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 1st quarter 2016: 24th April 2017 (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 close to 2 000 brand partners on its mobile app or online. It has over 28 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 750 million euros in 2016, corresponding to net sales of 540 million euros, up 22% versus the previous year. The company employs close to 1 000 people.
For more information: http://showroomprivegroup.com
PROFIT AND LOSS STATEMENT
(EUR thousands) 2015 2016 %Growth H2-15 H2-16 %Growth Net revenues 442,832 539,704 21.9% 243,414 299,373 23.0% Cost of goods sold -263,679 -332,027 25.9% -145,180 -187,202 28.9% Gross margin 179,153 207,676 15.9% 98,234 112,171 14.2% Gross margin as % of revenues 40.5% 38.5% -4.9% 40.4% 37.5% -7.2% Marketing -26,897 -25,683 -4.5% -19,099 -17,312 -9.4% As % of revenues 6.1% 4.8% -21.7% 7.8% 5.8% -26.3% Logistics & fulfilment -102,650 -122,084 18.9% -55,545 -66,094 19.0% As % of revenues 23.2% 22.6% -2.4% 22.8% 22.1% -3.3% General & administrative expenses -29,861 -36,887 23.5% -14,312 -19,178 34.0% As % of revenues 6.7% 6.8% 1.4% 5.9% 6.4% 9.0% Total Opex -159,408 -184,654 15.8% -88,956 -102,584 15.3% As % of revenues 36.0% 34.2% -5.0% 36.5% 34.3% -6.2% Current operating profit 19,745 23,022 16.6% 9,278 9,587 3.3% Amortisation of intangible assets recognised upon business reorganisation -783 -804 2.7% -392 -413 5.4% Other operating income and expenses -8,106 -19,617 142.0% -7,417 -9,603 29.5% Operating profit 10,856 2,601 -76.0% 1,469 -429 -129.2% Net finance costs -137 -690 403.6% 16 -456 -2950.0% Other financial income and expenses -106 580 -647.2% -169 396 -334.3% Profit before tax 10,613 2,491 -76.5% 1,316 -489 -137.1% Income taxes -5,470 -2,741 -49.9% -1,230 -467 -62.1% Net income 5,143 -250 -104,9% 85 -956 EBITDA 23,723 28,251 19.1% 11,412 12,509 9.6% EBITDA as % of revenues 5.4% 5.2% 4.7% 4.2%
KEY PERFORMANCE INDICATORS1
2015 2016 %Growth H2-15 H2-16 %Growth CUSTOMERS METRICS Total Members (in thousands) 24,568 28,282 15.1% 24,568 28,282 15.1% France 16,787 19,553 16.5% 16,787 19,553 16.5% International 7,781 8,729 12.2% 7,781 8,729 12.2% Cumulative Buyers (in thousands) 5,517 6,757 22.5% 5,517 6,757 22.5% France 4,520 5,562 23.0% 4,520 5,562 23.0% International 997 1,195 19.9% 997 1,195 19.9% Buyers (in thousands) 2,867 3,234 12.8% 2,119 2,369 11.8% France 2,389 2,767 15.9% 1,805 2,050 13.5% International 479 466 -2.6% 314 319 1.7% Revenue per Buyers 151.1 159.9 5.8% 112.9 119.3 5.7% France 154.9 164.0 5.8% 115.0 121.1 5.3% International 132.1 135.7 2.8% 100.9 107.7 6.7% ORDERS Total orders (in thousands) 11,748 13,605 15.8% 6,489 7,578 16.8% France 10,043 11,945 18.9% 5,649 6,678 18.2% International 1,705 1,660 -2.6% 841 900 7.1% Average Orders per Buyer 4.1 4.2 2.7% 3.1 3.2 4.5% (in number of orders) France 4.2 4.3 2.7% 3.1 3.3 4.1% International 3.6 3.6 0.0% 2.7 2.8 5.3% Average Basket Size 36.9 38.0 3.0% 36.9 37.3 1.1% France 36.8 38.0 3.1% 36.8 37.2 1.1% International 37.1 38.1 2.8% 37.7 38.2 1.4%
1 Excluding Saldi Privati
(EUR thousands) 2015 2016 NON-CURRENT ASSETS Goodwill 81,576 102,782 Other intangible assets 28,861 39,289 Tangible assets 14,833 15,626 Other non-current assets 1,180 6,902 Total non-current assets 126,450 164,599 Current assets Inventory 57,068 82,638 Accounts receivable 24,014 36,612 Deferred tax assets 3,519 3,519 Other current assets 27,952 36,915 Cash and cash equivalents 102,982 97,004 Total current assets 256,688 256,688 Total assets 341,524 421,287 Long term financial debt 2,962 2,038 Obligations to personnel 116 88 Deferred taxes 9,883 11,628 Total non-current liabilities 12,961 13,754 Short-term financial debt 916 966 Accounts payable 100,108 148,504 Other current liabilities 39,492 55,509 Total current liabilities 140,516 204,979 Total liabilities 153,477 218,733 Total shareholders' equity 188,047 202,554 Total liabilities and shareholders' equity 341,524 421,287
(EUR thousands) 2015 2016 H2-15 H2-16 Net income for the period 5,143 -250 85 -955 Adjustments for non-cash items 8,640 18,228 6,308 7, 017 Cash flow from operations before finance costs and income tax 13,783 17,978 6,393 6,062 Elim of accrued income tax expense 5,470 2,741 1,230 467 Elim of cost of net financial debt 137 690 -16 639 Impact of change in working capital -303 13,608 16,864 38,622 Cash flow from operating activities before tax 19,087 35,017 24,471 45,790 Income tax paid -5,141 -2,261 -2,600 503 Cash flow operating activities 13,946 32,756 21,871 46,293 Impact of changes in perimeter -31,751 -31,751 Acquisitions of property plant & equipment and intangible assets -6,348 -8,400 -4,189 -4,788 Changes in loans and advances -79 -97 -4 -97 Disposal of fixed assets 19 368 19 334 Net cash flows from investing activities -6,408 -39,880 -4,174 -36,302 Increase in share capital and share premium reserves 48,888 2,737 48,888 -1,890 Issuance of indebtedness 0 0 0 0 Repayment of borrowings -1,037 -901 -472 -438 Net interest expense -137 -690 16 -639 Net cash flows from financing activities 47,714 1,146 48,432 813
BRIDGE OF TOTAL GROSS INTERNET SALES TO IFRS NET REVENUES
(in EUR thousands) 2015 2016 H2-15 H2-16 Total gross Internet sales(1) 591,674 721,606 329,092 405,136 VAT(2) -93,515 -113,472 -55,456 -64,374 Revenue recognition impacts(3)-68,900 -87,497 -36,388 -52,128 Non-interest revenue and other(4) 13,573 19,067 6,163 10,740 Net revenues (IFRS) 442,832 539,704 243,411 299,374
(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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