MySale revenue up 8% in first half
The increase is ahead of the growth reported for the first five months of the financial year.
The company said it incurred an EBITDA loss after making one-off investments in marketing and other product initiatives in the first five months of the financial year as it looked to stimulate revenue growth and enter new markets. However, it expects EBITDA margin to be positive in the second half.
Following a review of first half performance, MySale said it has decided to focus on its key markets of Australia, New Zealand, South-East Asia and the UK.
Having launched in the US in 2014, member acquisition costs have been higher than expected and, as a result, MySale has now closed its US website. The company has also decided to withdraw from the South Korean market for similar reasons. The two closures will result in a significant reduction in the company's cost base.
Looking ahead, MySale expects revenues for the full year to 30 June 2015 to grow at a similar rate to the first half of the financial year. During the second half, the company will focus on improving the efficiency of its marketing and promotional spending.
Carl Jackson, MySale chief executive, said: ''We had a challenging first half, brought on in part by our rapid expansion. Despite this our core business model remains sound and we have delivered strong growth in members which will contribute to the turnaround in financial performance in the second half. The Group is well insulated with a strong cash position and its low inventory business model where the vast majority of revenue is generated on a consignment basis.
"Our focus in 2015 will be on excellent sourcing, flawless execution, cost discipline and continued member conversion to maximise our EBITDA performance. We continue to see substantial growth opportunities for the business, particularly in the high growth South- East Asian markets and also in the UK, where we now have almost 1.8 million members."
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