MercadoLibre sees profit surge in Q1

05 May 2016

Latin American ecommerce and classifieds player MercadoLibre (Nasdaq:MELI) saw net income surge from $1.7 million U.S in the first quarter of 2015 (Q1 2015) to $30.2 million in Q1 this year, the company announced on Thursday, while releasing its quarterly results.

“The year has gotten off to a great start already coming off one of our strongest years ever,” the company’s Chief Financial Officer (CFO), Pedro Arnt, said.mercadoLibre-nuevo-logo

Despite the challenging economic scenario affecting several LatAm economies, including Brazil, which accounted for 49.1 percent of MercadoLibre’s total revenues in Q1, the company saw net revenues rise 6.4 percent in Q1, year-on-year, to $157.6 million. Excluding Venezuela, Latin America’s most volatile market, the company’s revenues increased 8.5 percent in USD and 56.9 percent in local currencies.

Net income margin declined in Q1 to 19.2 percent, from 21.6 percent in Q4.

As for classifieds, the company didn’t provide much details. “Classifieds revenues accelerated to 49 percent on an FX neutral basis, driven by continued momentum in our Argentine business,” said Arnt.

Advertising revenues, a stream that is still being pursued by LatAm verticals, seems to be paying off for the Nasdaq-listed player. “Advertising revenues rose 136 percent in local currencies, as the product ad format continues to gain traction and share of advertising revenues over traditional display formats,” the executive commented.

The company’s full results can be seen here.

Other materials, including the company’s Q1 earnings call, earnings script and presentation can be found here, here and here.

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Léo Siqueira

Léo Siqueira joined the AIM Group in 2014 as writer and analyst for Latin America. He is a multimedia journalist based in, but not limited to Campinas, Sao Paulo. Siqueira has been writing, reporting, and consulting for different news outlets and corporations in Brazil and in the US. Siqueira has worked for almost three years as a correspondent in Brazil with ICIS, the world’s largest information provider for the global petrochemical industry, and has been working with other global publishers, such as USA TODAY and Motorsport.com. His expertise includes general news coverage, online, print and multimedia journalism, and corporate communications as well. In this particular area, he has been working with international clients.