Latam’s MercadoLibre profits soars, boosted by fintech division
2022.08.04 02:05
FILE PHOTO – The logo of Argentine online marketplace MercadoLibre is seen in this undated handout illustration distributed to Reuters on July 27, 2022. Mercado Libre/Handout via REUTERS
SAO PAULO (Reuters) -South American e-commerce giant MercadoLibre (NASDAQ:MELI) Inc reported on Wednesday that its second-quarter net income rose 79.8% year-on-year, beating earnings forecasts.
The company’s net income for the three-month period was $123 million, beating a Refinitiv forecast of $98.9 million.
The company’s net revenue rose 56.5% in constant currency and 52.5% in dollars to $2.6 billion as it registered growth in revenues from its commerce and fintech sectors.
The group’s financial arm, Mercado Pago, saw net revenue soar 112.5% in dollars year-on-year to $1.2 billion, as it expanded its lines of business, such as insurance and investment tools.
Mercado Pago reported a 83.9% jump in total payment volume in constant currency to $30.2 billion. Its credit portfolio reached $2.7 billion in the quarter, a 12.5% increase in comparison to the previous quarter.
The company, present in 18 countries including Brazil, Mexico and Colombia, said unique active users rose 11% versus last year to a total of 84.3 million.
Its gross merchandise volume (GMV), a widely watched figure for the e-commerce industry’s performance, rose 21.8% in dollars and 26.2% in constant currency from a year earlier to $8.6 billion.
