Kogan.com achieved 23.4% year-on-year Active Customer growth, taking the Active Customers to 1,589,000 as at 31 March 2019 in comparison to 1,288,000 as at 31 March 2018.
On Thursday, the consumer discretionary company, Kogan.com Limited (ASX: KGN), stated that its business has generated strong earnings growth in the March 2019 quarter while the team continued to lay the foundation for future growth.
Kogan Internet, which is less than one year old, grew active customers by 78.7% quarter-on-quarter, as at 31 March 2019, after a strong quarter of promotional activity driving accelerating customer growth. While the NBN market remains challenging, the company is focused on growing the active customer base, rather than growing revenues.
Kogan.com Founder & CEO, Ruslan Kogan stated that Kogan’s team has delivered a solid quarter of earnings growth, and continued to make in-demand products and services more affordable and accessible, all while launching Kogan Marketplace, and undertaking the preparatory work to launch key upcoming new verticals.
Compared to the previous corresponding period, 3QFY19 Gross Transaction Value grew 17.5%, Revenue increased by 9.5%, Gross profit by 28.4% and EBITDA by as massive as 96.4%.
Kogan Insurance revenue for 3QFY19 grew by 73.6% year-on-year while the company has worked with its partners in Kogan Insurance to accelerate growth. This has led to the complete Kogan-branding of the Car, Home and Contents Insurance offerings. Previously the post-purchase experience in these insurance divisions was predominantly branded with the underwriter’s brand.
The Company has arranged an insurance policy through a Syndicate Underwriter at Lloyd’s of London to ensure its financial exposure under extended care policies sold since July 2018. As a result, Kogan.com reported a positive P&L impact in respect of the period between July to December 2018 of $0.7 million which was booked in March 2019. It is also expected to earn commissions from the sale of extended care policies on an ongoing basis. The new arrangement enables the company to streamline its extended care offering and provide an enhanced customer experience while also covering its financial exposure.
During the period, the company has also penetrated in the energy market through the launch of Kogan Energy Compare which works as an energy comparison tool enabling customers to upload a current bill to see if any savings are available. The company stated that from today, i.e., 18 April 2019, a beta version of the tool is available at its websites.
Ruslan Kogan added that “Customer demand for better deals will soon be satisfied with Kogan Credit Cards, Kogan Super, and Kogan Mobile New Zealand. The millions of Aussies that visit Kogan.com every month continue to benefit from its ongoing investments in its platform and nationwide logistics capability that enhances the user experience across its portfolio of businesses.
The Company has also launched a membership subscription service – Kogan First – which allows customers to subscribe for unlimited free shipping on a wide selection of items.
On this update, KGN stock price jumped up by 18.625% to last trade at $5.350 on 18 April 2019.
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