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MyDeal record result hit by IPO, advertising costs

MyDeal founder and chief executive Sean Senvirtne. Source: Supplied.

Online homewares marketplace MyDeal has delivered record revenue and gross profit for the six months to December 2020, though IPO costs dragged down its overall earnings.

The result, which saw revenue jump 248 per cent to $21.2 million and gross profit 210 per cent to $18.9 million, was the business’ first since it listed publicly last October.

Active customers soared, up 205 per cent to a approximately 810,000, and the business’ base of private label products leading to a 43 per cent gross margin played a large role in achieving its record gross profit.

However, the cost of the public listing, as well as almost $16 million spent on advertising and wages, brought the business’ earnings down to a loss of $1.8 million.

The business’ founder and chief executive Sean Senvirtne remains confident that the business is in a strong position to further its online growth in the coming year.

“We are well placed to capitsalise on maturing trends in Australian online retail. Online penetration rates in Australia for furniture and ho9meware sales are in their infancy compared to the UK and US,” said Senvirtne.

“The more experienced a user gets at e-commerce the more they want price and value delivered through a seamless customer experience. This is our sweet spot.”

And it has started off the second half strong, with gross sales for January up 190 per cent, and the launch of MyDeal apps on iOS and Android mobile devices coming soon.

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