Discount deals company Groupon Inc. reported better-than-expected results, driven by North America where it added more than 1 million customers and reported a 9% increase in local billings.

Shares, up 23% this year, rose 24% to $4.70 in after-hours trading on Wednesday. The company is in the midst of a costly turnaround plan to take on internet heavyweights.

For the year, Groupon adjusted its financial projections for the year. It now expects $3 billion to $3.10 billion in revenue on $140 million to $165 million in adjusted earnings before interest, taxes, depreciation and amortization, compared with its earlier view of $2.75 billion to $3.05 billion in revenue on $85 million to $135 million in adjusted Ebitda.

Launched in 2008 as a side project of a collective action website, Groupon went public in 2011. The stock surged on the first day of trading, driving Groupon's market valuation to $16.6 billion.

Accounting issues, management changes and stiffer competition from Amazon Inc., Alphabet Inc.'s Google and Facebook Inc., have since pressured the company's results.

As part of the turnaround plan, Groupon has shut down operations around the world to focus operations in the U.S. and Canada, which combine account for the bulk of its business.

In April, it disclosed a $250 million investment from an investment company formed by Comcast Corp. and Michael J. Angelakis, its former chief financial officer and now senior adviser to its executive management committee.

Under the terms of the deal, Mr. Angelakis joined Groupon's board.

Over all, Groupon reported a loss of $54.9 million, or 10 cents a share, compared with a year-earlier profit of $109.1 million, or 16 cents a share, a year earlier. Excluding stock-based compensation and other items, Groupon reported a loss of a penny a share, compared with a year-earlier profit of 2 cents a share.

The year-ago results had been bolstered by the sale of Ticket Monster in South Korea.

Revenue, which excludes the portion of each transaction that goes to merchants, rose to $756 million, a 2.4% increase, or 3% when adjusted for currency conversions.

Analysts surveyed by Thomson Reuters had projected an adjusted loss of 2 cents a share on $711.2 million in revenue.

Active customers, which the company defines as those who have made a purchase within the past 12 months, rose to 50 million in the latest period, compared with 49.4 million in the previous quarter and 48.6 million in the year-ago period.

Gross billings, which excludes taxes and refunds, were $1.49 billion, down 2% from the year-ago period, driven by a 12% decline in Europe, Middle East and Africa and a 27% decline in its "rest of world" segment.

Write to Maria Armental at maria.armental@wsj.com

 

(END) Dow Jones Newswires

July 27, 2016 17:55 ET (21:55 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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