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Latam’s MercadoLibre profits soars, boosted by fintech division

Randy Mancini 7 Aug 3

SAO PAULO (Reuters) -South American e-commerce giant MercadoLibre Inc reported on Wednesday that its second-quarter net income rose 79.8% year-on-year, beating earnings forecasts.

The company’s net income for the three-month period was $123 million, beating a Refinitiv forecast of $98.9 million.

The company’s net revenue rose 56.5% in constant currency and 52.5% in dollars to $2.6 billion as it registered growth in revenues from its commerce and fintech sectors.

The group’s financial arm, Mercado Pago, saw net revenue soar 112.5% ​​in dollars year-on-year to $1.2 billion, as it expanded its lines of business, such as insurance and investment tools.

Mercado Pago reported a 83.9% jump in total payment volume in constant currency to $30.2 billion. Its credit portfolio reached $2.7 billion in the quarter, a 12.5% increase in comparison to the previous quarter.

The company, present in 18 countries including Brazil, Mexico and Colombia, said unique active users rose 11% versus last year to a total of 84.3 million.

Its gross merchandise volume (GMV), a widely watched figure for the e-commerce industry’s performance, rose 21.8% in dollars and 26.2% in constant currency from a year earlier to $8.6 billion.

(Reporting by Aluisio Alves; Writing by Carolina Pulice; Editing by Jonathan Oatis and Cynthia Osterman)