Ticket Monster Achieves Breakeven in June
- Ticket Monster reveals Q2 performance…announces breakeven achievement and rapid growth
- 41% market share in June, a firm leader in average sales per deal
- Achieved breakeven midst long term investments, such as R&D, CS, and infrastructure
- Will continue to invest heavily in core operations for further growth
Only two years after the company was founded in May 2010, Ticket Monster, the largest social commerce website in Korea, has announced that they have achieved 66.2billion won this June, the highest monthly gross billings in company history. With continued growth in subscribers, purchasers and tickets sold, the company also announced that it has turned cash flow positive.
Ticket Monster has seen gross billings increase at a rapid pace through aggressive business expansion whilst cash flow has been improved with the adoption of efficient operational processes. They emphasized that they have shown strong performance and is self-sufficient enough to run their business. Gross billings were 180.7 billion won for the just-concluded 2nd quarter, an increase of 144% over 2011 Q2’s 73.8 billion won.
According to social commerce meta-site, Dealtable (www.dealtable.co.kr, see reference 1), the market share in June for the top four companies were Ticket Monster 41%, Coupang 37%, WeMakePrice 14%, and Groupon 8%. In addition, the average sale per deal was 11.4 million won, exceptionally higher than 5.7 million won, the average of the other three. Also, Ticket Monster was the highest in ranking for number of sold out deals (see graph 2).
Since its acquisition by LivingSocial in September last year, LivingSocial has invested more than 30 billion won in Ticket Monster as it maintains its market leadership in Korea and continues to invest in best-in-class operations. Ticket Monster's financial status is strong given it is part of a growing global company, LivingSocial, that has raised hundreds of millions of dollars in capital. Global e-commerce leader Amazon also owns approximately 30% of LivingSocial.
John Bax, LivingSocial’s CFO, commented: “TMON has shown strong performance and is self-sufficient to run their business. LivingSocial plans to continue to invest aggressively in the Korean market to ensure TMON has sufficient resources to continue to be best-in-class.”
Ticket Monster also released figures indicating a healthy subscriber base with growing purchase activity. The number of purchasers this Q2 exceeded 1.8 million, compared to 1.08 million in last year’s Q2 (see graph 3). The number of tickets sold this Q2 was 12 million, two times more than last year’s Q2 (see graph 4). Besides these quantitative figures, qualitative figures, such as partner satisfaction of local merchants, are also increasing and showing Ticket Monster’s strong status. Partner satisfaction rate increased from 63 points 2011 June, to 87 points last April (see graph 5).
Ticket Monster’s continued business expansion and improvement comes midst the company’s continued investment in R&D, CS, infrastructure and new business expansion. Ticket Monster is the first in the industry to have launched the mobile-based instant deals service (TMON NOW) as well as the recent adoption of TMON CLICK, a POS based system that aims to provide a more comprehensive merchant solution to 54 million SMEs throughout Korea. In addition, ever since the customer service satisfaction enhancement campaign, ‘You Come First” which began last February, Ticket Monster has been investing highly on fast delivery services and expansion of the CS Center.
Daniel Shin, CEO of Ticket Monster, said “This financial milestone comes midst continuous investment into building innovative platforms and infrastructures that can drive our business to the next level. We will continue to make aggressive investments and expand into new business opportunities that can provide greater value and fulfilling experiences to our customers and merchants.”
(Reference 1) Dealtable is a social commerce information site, which is 3rd place in Rankey.com’s meta-site ranking. Starting last November, they have been using crawling methods to sum up the totals of the top 4 social commerce companies’ gross billings. TMON NOW, Coupang Time, WeMakePrice MOMS & Private Lounge, and Groupons’s GROOM data are not included. The option price and cancellations are also not included, so there is a difference between the actual figure and Dealtable’s; however, all companies are analyzed in the same standards.
(Graph 1) Gross billings increase per quarter
(Graph 2) Top4 social commerce companies’ June results (Source: Dealtable)
(Graph 3) Number of purchasers
(Graph 4) Number of tickets sold
(Graph 5) Partner satisfaction of local merchants
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