MercadoLibre's second quarter profit doubles as sales volume and user growth increase

SAO PAULO (Reuters) – South American e-commerce big MercadoLibre reported on Wednesday a 113% enhance in its web earnings for the second quarter from a yr earlier to $261.9 million, amid elevated gross sales quantity and a rise within the variety of customers.

With a presence in additional than 18 nations throughout Latin America, the corporate noticed its web income rise 57.3% in fixed forex to $3.4 billion.

Throughout the quarter, MercadoLibre mentioned it added 8.1 million new customers throughout its operations, bringing its complete lively person base to 108.6 million.

Working earnings elevated 123.7% in greenback phrases, to $558 million, whereas working margin was 16.3% in comparison with 9.6% a yr in the past, supported by efficiency in Brazil and Mexico.

The group’s earnings per share got here in forward of analyst expectations of $4.54, to come back in at $5.22.

In its monetary expertise unit, income grew 48.4% in native forex to $1.5 billion, pushed by progress of 18.3% for lively Mercado Pago customers. Whole funds quantity jumped 96.6% in fixed forex to $42 billion.

MercadoLibre mentioned a complete of 318.5 million gadgets have been shipped throughout Latin America within the quarter, representing progress of 20.6% yr over yr.

“The fast prime line progress and margin enlargement was broad throughout geographies and enterprise items,” Chief Monetary Officer Pedro Arendt mentioned in an announcement.

Arndt added that the corporate intends to make use of “a few of the headroom” created by its working leverage to “alter to sure areas of the enterprise” throughout the the rest of the yr.

In the meantime, the corporate’s mortgage portfolio elevated by greater than 21% and reached $3.3 billion within the first quarter, throughout which period the interval was marked by wholesome profitability and the default fee remained steady in operations with vital publicity as much as 90 days.

Gross merchandise quantity (GMV), a key metric within the e-commerce business, rose 47.2% in fixed forex to $10.5 billion.

(Reporting by Andre Romani; Writing by Carolina Polis; Enhancing by Brendan O’Boyle)

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