2:20 PM, Dec 3, 2018 — Groupon (GRPN) and AMC Theatres (AMC) agreed to a distribution partnership to give users greater access to the movies through the cinema exhibitor’s network of theaters and screens across the US.
The integration is expected to be launched in the first half of next year, the Chicago-based online deal marketplace said on Monday. The companies also plan to explore longer term opportunities to work together, said Groupon, which has been moving away from its deal-a-day voucher business to bring more offerings to consumers.
“Partnering with AMC helps us bolster an already strong category for Groupon,” said Brian Fields, head of things to do. “This integration furthers our mission of becoming the daily habit in local by connecting people with more entertainment choices in their community. Going to the movies is the quintessential local experience.”
Groupon shares, which touched an 18-month low in November, was up about 2% on Monday.
Three years since bringing in Chief Executive Rich Williams, Groupon’s strategy of gradually moving to a mobile-based platform comes as revenue retreats, with third-quarter sales sliding 6.6% to $592.9 million, it said on Nov. 7.
“Email is in deep decline across e-commerce,” Williams said in a letter to shareholders last month. “At Groupon, that’s translated to email dropping from nearly 100% of our business in the early days to around 20% today. Since I took over as CEO, that’s meant a roughly $135 million annual gross profit headwind for the business.”
Companies: Groupon, Inc.
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