Groupon reports strong holiday sales

Despite reporting a boost in fourth-quarter profits, Groupon says the impact of foreign exchange rates will affect first-quarter performance.

The e-commerce company posted fourth-quarter profit of 6 cents per share, up from 4 cents a share a year earlier. Revenue increased 20 percent to $925 million from $768 million.

“2014 was a transformational year for Groupon, as we made significant progress in our strategy to become the world’s leading local commerce destination,” said Eric Lefkofsky, CEO of Groupon. “Global billings hit their highest level ever in the quarter, growing more than 30%, driven in part by our reignited North America Local business. We now turn our attention to further building out our marketplace to ensure that our more than 260 million subscribers have an amazing experience every time they use Groupon.”

But Groupon said it projects first-quarter revenue of between $790 million and $840 million, below estimates of $856 million. For the year, the company reported that its loss narrowed to $73.1 million, or 11 cents per share. Revenue was reported as $3.19 billion.

The company also confirmed that multiple parties have expressed preliminary interest in acquiring its Ticket Monster business. Groupon bought Ticket Monster, which sells concert and sports tickets, from LivingSocial Inc. just over a year ago for $260 million.