MySale returns to profit after restructuring to “inventory light” marketplace platform

MySale trading update
The group operates 12 websites in five countries
// MySale profits rise after restructuring to an “inventory light” marketplace platform
// EBITDA grew to £1.39m in the six months to December 31
// This is up from a loss of £1.72m in the same period the year before

MySale has said it returned to profitability after EBITDA grew to A$2.5 million (£1.39 million) in the six months to December 31, up from a loss of A$3.1 million (£1.72 million) in the same period the year before.

The Australian online retailer said the profit rise came as a result of restructuring to an “inventory light” marketplace platform.

Group revenue dropped by 11 per cent year on year to A$63.8 million (£35.4 million).

READ MORE: MySale launches strategic review as sale process begins

All group revenues excluding revenue from legacy inventory for the period was up 15 per cent to A$61.3 million (£34 million).

“The group has continued to focus on its activities and opportunities in the ANZ region, through its ANZ [Australian and New Zealand] First strategy,” MySale said.

“This strategy aims to optimise the group’s significant scale, resources and market position in this region. This focus on ANZ resulted in core revenue growth of 21 per cent, which was partially offset by an expected revenue decline in South East Asia (-36 per cent year on year).

“Our revenue focus is on sales through the inventory light platform, consisting of third-party sellers and selective high margin, fast turnaround own stock.

“Sales of legacy stock in the period reduced significantly to A$2.5 million (£1.39 million) [from A$18.8m (£10.4m) the year before] as this remaining stock is cleared for cash.

“A key area of the restructure has been to focus on better quality revenue, which has meant being much stricter on which third-party sellers can trade on the platform and being more selective over what stock is purchased.

“This in turn has led to better quality products on the website and a significant improvement in customer satisfaction scoring, which should lead to improved customer retention and repeat purchase rates going forward.”

The group operates 12 websites in five countries; OzSale, BuyInvite, DealsDirect, OO, Top Buy and IdentityDirect in Australia; NzSale, Buyinvite and IdentityDirect in New Zealand; SingSale in Singapore, and MySale in Malaysia and Hong Kong.

In 2019, Mike Ashley’s Frasers Group sold off its 4.8 per cent stake in MySale.

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