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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] Coupang surpassed 10 trillion won in quarterly revenue for the first time in its history during the second quarter, but it swung back to a loss, recording an operating loss of 34.2 billion won. This marks the first operating loss in eight quarters since the third quarter of 2022, with the fine imposed by the Korea Fair Trade Commission (KFTC) playing a decisive role in worsening profitability.
Coupang Inc., Coupang's U.S.-listed parent company, announced its second-quarter results after the market closed at the New York Stock Exchange (NYSE) on the 6th (local time). Coupang's second-quarter revenue was 10.0357 trillion won (7.323 billion dollars), surpassing the 10 trillion won mark for the first time since its founding. This figure represents a 30.8% increase compared to the same period last year (7.6749 trillion won). However, in terms of profit, the company recorded an operating loss of 34.2 billion won. Coupang had returned to operating profitability for the first time in the third quarter of 2022 and had maintained profitability until the first quarter of this year, but it has now swung back to a loss after eight quarters. This is a significant deterioration compared to both the same period last year (194 billion won) and the first quarter of this year (53.1 billion won). Coupang also recorded a net loss of 143.8 billion won in the second quarter.
The primary reason for Coupang's deteriorating profitability is attributed to the fine imposed by the KFTC. In its second-quarter earnings presentation, Coupang stated that it included an estimated fine of 163 billion won (121 million dollars) imposed by the KFTC as a selling and administrative expense. In June, the KFTC decided to impose a fine on Coupang for manipulating search rankings to favor its own private brand (PB) products. Additionally, the losses from the global luxury platform Farfetch, which Coupang acquired late last year, also weighed negatively, amounting to 42.7 billion won (31 million dollars). However, the losses related to Farfetch have significantly decreased from 126.9 billion won (93 million dollars) in the first quarter. Coupang explained that if the estimated KFTC fine and Farfetch losses are excluded, its second-quarter net income attributable to controlling shareholders would be 169.9 billion won (124 million dollars).
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
