Polish e-commerce platform Allegro on Thursday reported forecast-beating net profit in the second quarter as it saw continued demand from online shoppers despite the easing of pandemic-related restrictions.
Founded more than 20 years ago as a home-grown rival to eBay, Allegro saw a sales boost last year as the pandemic accelerated the shift to online shopping and consumers relied on e-commerce for their everyday needs.
Allegro improved terms for shoppers and third-party sellers during the COVID-19 pandemic, as more consumers shifted online. Its SMART! subscription programme helped revenues increase 28.4% to 1.31 billion zlotys ($341.05 million) in the quarter.
Net profit came in at 295.9 million zlotys, up 59.9% from 185 million zlotys a year earlier and above the 286 million zlotys expected by analysts.
“This performance shows that our strategy of constant investment to improve client experience, the SMART! Program, Allegro Pay and many buyer and merchant facing innovations, has ensured that we have retained a significant part of the extra buyer demand caused by the COVID-19 crisis,” chief financial officer Jon Eastick said in a statement.
Allegro gets most of its revenue from its marketplace, but its ad business has been growing the fastest, jumping 39.5% year on year to 32.1 million zlotys.