* Rocket’s Lazada And Zalora Lost $235.3 Million In 2014 But Are Moving Toward Profitability

By Susan Cunningham
Forbes.com | May 12, 2015

Lazada, Southeast Asia’s largest shopping platform, and its sister apparel site, Zalora, racked up huge gains in sales and transactions in 2014 but together lost $235.3 million. The good news for those invested in the German parent company, Rocket Internet Group, is that losses as a proportion of revenues are shrinking.

Rocket, which has stakes in 141 internet companies throughout the world, released its 2014 results last week. It listed on the Frankfurt Stock Exchange on October 2, 2014.

Lazada Losses and Revenues Double

Lazada’s six general merchandise sites operate in Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam. Lazada’s net revenue was US $154.3 million last year, more than double 2013 results of $75.5 million. Yet the company’s net operating losses (EBITDA, or earnings before interest, taxes, depreciation and amortization) were $152.5 million, also more than double the 2013 figure of $67 million.

(Most figures in Rocket’s annual report were in euros; Lazada’s results were reported in US dollars.).

For online retailers, however, a key metric is growth in Gross Merchandise Volume (GMV)–the sales value of products sold. In the case of an unprofitable company like Lazada, another metric is the share of losses relative to GMV and whether that share, the negative margin, is narrowing year on year. By that measure, Lazada is moving in the right direction. MORE

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* Rocket’s Asian Ups and Downs

By Susan J. Cunningham
Forbes Asia

Philippine Long-Distance Telephone’s 8.6% stake in Rocket Internet is a no-brainer: Telecom and Internet giant PLDT is a pioneer in online and mobile payments, and Rocket’s own payment system, Payleven, quickly foundered in 2012 when the first Rocket e-commerce sites were being established in Asia.

For many poorer residents the cheap smartphones now flooding into the far reaches of East and South Asia will mean their first access to the Internet, and mobile wallets will make them more likely to become online buyers. As it is now, Rocket’s six Amazon-like general shopping sites in Southeast Asia (called Lazada) as well as its nine Zappos-like apparel sites (Zalora in Southeast Asia and Hong Kong, and Jabong in India) offer the option of … MORE

This story appears in the September 2014 issue of Forbes Asia.