Groupon Earnings Preview: While Top-Line Could Under-Perform, We Expect Profitability To Improve

The company recently divested a controlling stake in its South Korean business, which will be treated as a discontinued operation in the current financial results. Though this divestiture, together with currency headwinds, will impact its top-line growth rate, we expect strong demand across product categories and North American markets to carry earnings in the first quarter. In terms of profitability, we think Groupon will report strong growth in adjusted EBITDA, helped by its productivity initi...