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Groupon shares hammered after fresh losses

Published on Feb 28, 2013 6:56 AM
People enter and leave Groupon Inc corporate office and headquarters in Chicago, Illinois in this November 4, 2011 file photograph. Groupon Inc lost a quarter of its market value on February 27, 2013 after the largest daily deal company reported disappointing quarterly results and issued a weak forecast. -- PHOTO: REUTERS

NEW YORK (AFP) - Groupon shares took a nosedive on Wednesday after the online deals giant surprised markets by reporting fresh losses in the past quarter and a weaker-than-expected outlook.

Shares plunged 24 per cent to US$4.53 in after-hours trade after the Chicago-based firm reported a loss of US$81 million in the fourth quarter, and a US$67 million dollar deficit for the full year.

The loss translated to 12 cents per share in the quarter, compared with expectations of a profit of three cents a share.

With the daily deals sector fading fast after last year's optimism, Groupon also offered a weak revenue outlook of US$560 million to US$610 million, well below market expectations of US$650 million.

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