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Groupon CFO says shared more revenue with merchants in fourth quarter
February 27, 2013 / 10:02 PM / 5 years ago

Groupon CFO says shared more revenue with merchants in fourth quarter

SAN FRANCISCO (Reuters) - Groupon Inc Said it raised the percentage of revenue it shared with partner merchants in the fourth quarter, a move intended to keep and attract merchants for the Internet deals it runs, but that ate into revenue and profitability.

The Groupon smartphone app is displayed on a Motorola Droid Bionic cell phone in Denver November 4, 2011. REUTERS/Rick Wilking

Chief Financial Officer Jason Child told Reuters in an interview that Groupon began taking about 35 percent of deal-revenue in the quarter and handing 65 percent to its partners, describing the so-called “take rate.”

Groupon historically has kept about 40 percent of revenue generated through daily deals on its website.

Reporting by Alistair Barr; Editing by Richard Chang

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