Mercari's Net Loss Expands

Economy

Tokyo, Aug. 9 (Jiji Press)--Japanese flea market app operator Mercari Inc. <4385> said Thursday its group net loss expanded to 7,041 million yen in the year through June from the previous year's 4,207 million yen.

Rising advertising costs in the United States and higher costs for hiring engineers weighed on the bottom line, the company said in its first annual earnings report since going public in June.

Sales rose 62.0 pct to a record high of 35,765 million yen thanks to an increasing number of users in Japan. Mercari was founded in 2013.

At a press conference, Shintaro Yamada, founder and chief executive officer of Mercari, expressed his intention to focus more on investment for future growth than on immediate profit.

"The company is not yet in a position where it needs to care about short-term earnings," Yamada said.

[Copyright The Jiji Press, Ltd.]

Jiji Press