Rocket Internet fears severe setback due to coronavirus crisis. (picture alliance / dpa)
After a quarterly loss due to the corona crisis, start-up investor Rocket Internet expects a continued negative development for the foreseeable future. Uncertainty has risen sharply for "a very large number" of companies in the group's portfolio as a result of the COVID-19 pandemic, Rocket Internet’s CEO Oliver Samwer said on Thursday at the presentation of the final quarterly figures in Berlin. This has had a negative impact on valuations and operating profit, he said. " We expect this to endure in the short- and medium-term."
Rocket Internet expects lower revenue growth and, in some cases, sharp declines in revenue in 2020 compared to the previous year at many of its network of companies. "The COVID-19 pandemic could have a significant negative impact on the loan portfolio granted," the quarterly report states. However, it is not possible to predict the extent of this impact.
In the first quarter of 2020, Rocket Internet posted a net loss of 162 million euros, as announced, despite increased sales at its subsidiaries Home24 and Global Fashion Group. A year earlier, it had posted a profit of 140 million euros. At the end of April, Rocket Internet had an available net cash position of 1.9 billion euros.
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