Groupon shares climb after CFO comments on growth in Europe
SAN FRANCISCO (Reuters) - Groupon Inc (GRPN.O) shares rose 8 percent on Tuesday after Chief Financial Officer Jason Child told an investor conference that the company is taking steps that will help drive its growth in Europe.
Technology that helps Groupon send more relevant daily deals to U.S. subscribers is now being introduced in Europe.
"It's one of the primary drivers we expect to see in the back half of this year," Child said. "That should be one of the solutions for helping us to drive growth in the future."
Groupon shares rose 8 percent to $4.61. The shares, which slumped after the company reported second-quarter results that were dragged down by a weak performance in Europe, hit a record low of $4 on Sept 4.
The stock has lost about three quarters of its value since Groupon went public late last year.
The CFO "sounded optimistic," said Aaron Kessler, an Internet analyst at Raymond James & Associates, which organized the conference where Child spoke.
"Technology roll-out should help Europe growth" in the second half of 2012, Kessler wrote in a note to investors summarizing Child's comments.
While Groupon's second-quarter results were lackluster, that period is usually slow for e-commerce companies. As a young company, it is not yet clear if Groupon will experience similar seasonal fluctuations.
"The key is if the second-quarter slowdown was more seasonal in nature," Kessler said.
(Reporting by Alistair Barr; Editing by Leslie Adler)
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