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Groupon (GRPN) Expands Alliance with MLBAM's Tickets.com

Zacks Equity Research
Updated

Groupon, Inc. GRPN recently entered into an extended strategic relationship with MLBAM’s privately owned subsidiary, Tickets.com. Per the partnership, Groupon will be able to furnish robust ticketing experiences to major ticketing clients of Tickets.com.

Tickets.com’s Registered Developer Program enables validated third-party offerings to integrate with its ProVenue ticketing platform. ProVenue offers partner venues with access to its sophisticated ticketing technology.

Groupon, a member of Tickets.com’s Registered Developer Program, will be able to provide its broad-based online and mobile marketplace to all venues by leveraging ProVenue technology.

Focus on North America Bodes Well

The venues can feature their events on Groupon to upscale digital footprint by better targeting locals and tourists alike. The venues comprise notable stadiums, arenas, performing arts centers and theaters across North America.

In the words of Groupon’s vice president and general manager of things to do, Brian Fields, “With more than 32 million Groupon customers in North America and a huge presence on mobile, we’re helping some of the biggest names in live entertainment attract the next generation of fans.”

In second-quarter 2018, North America revenues accounted for 61.6% of total revenues. However, the figure declined 15.9% from the year-ago quarter to $380.3 million. Nevertheless, the company anticipates North America segment to be flat on a year-over-year basis for the third quarter.

As of Jun 30, 2018, the company had approximately 32.2 million active customers based in North America compared with 32.6 million at the end of the previous quarter.

Groupon is expected to boost its North America customer base considerably with the extended alliance, consequently bolstering top-line.

Share Price Performance

Groupon’s stock has returned 1.9%, underperforming industry’s rally of 18.1%.



The underperformance can be attributed to pessimism regarding the transition to high-margins local services market, which is hurting revenues. Additionally, investors are anxious regarding the recent lawsuit from IBM IBM which is likely to hurt margins in the near term.

To Conclude

Groupon rides on solid partnerships across its marketplaces. The company’s partnership with Grubhub GRUB continues to enable customers to order food delivery from more than 80,000 restaurant partners of Grubhub via Groupon platform.

Further, partnerships with CourseHorse, Viator, ParkWhiz, American Express, Major League Baseball, among others are aiding Groupon to cater to just about any local need, consequently aiding it with rapid penetration in the e-commerce market.

A proper mix of products along with accelerating consumer driven initiatives, are expected to benefit the company.

Zacks Rank & Key Picks

Groupon carries a Zacks Rank #3 (Hold).

Amazon.com, Inc. AMZN sporting a Zacks Rank #1 (Strong Buy) is a stock worth considering in the same industry. You can see the complete list of today’s Zacks #1 Rank stocks here.

Amazon has a long-term earnings growth rate of 26.5%.

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International Business Machines Corporation (IBM) : Free Stock Analysis Report
 
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