Jumia parent company Rocket Internet is fading with massive revenue drop

Jumia parent company Rocket Internet is fading with massive revenue drop

Though Jumia is not mentioned in the short press release. We are certain it is one of the biggest puzzle components while Rocket Internet is fading.

Special items, in particular due to impairments at Global Fashion Group S.A. (“GFG”), weighed on the results of Rocket Internet SE (“Rocket Internet” or the “Company”) in the first half of 2016. As a result of the last funding round for GFG, which was announced in April 2016 and which closed in July 2016, GFG wrote-off goodwill and intangible assets. GFG contributed negative EUR 383 million to the Rocket Internet’s first half year results. The result was further impacted by special items such as impairments, fair value adjustments and – to a lesser extent – positive special items. Overall, the consolidated loss for the first half of 2016 was EUR 617 million.

As a result of deconsolidation effects, group revenues in the first half of 2016 decreased to EUR 29 million compared to EUR 71 million in first half of 2015.

“Despite these special items, we remain committed to our goals”, says Oliver Samwer, CEO Rocket Internet. “We still expect at least three of our selected portfolio companies to turn profitable by the end of 2017, and that the aggregate EBITDA losses of the selected portfolio companies will have peaked in 2015. “

Rocket Internet will report detailed results for the first half of 2016 on September 22, 2016

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