Groupon names Eric Lefkofsky as CEO

Groupon names Eric Lefkofsky as permanent CEO; posts 2Q loss, higher revenue

Associated Press
Ahead of the Bell: Groupon jumps
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FILE - This July 11, 2013 file photo shows Eric Lefkofsky, chairman and co-founder of Groupon Inc., in Sun Valley, Idaho. Groupon named Lefkofsky as CEO on Wednesday, Aug. 7, 2013, replacing Andrew Mason, who was fired from the online deals site in February amid growing concerns about its financial performance. (AP Photo/Rick Bowmer, File)

NEW YORK (AP) -- Groupon named co-founder Eric Lefkofsky as CEO Wednesday, replacing Andrew Mason, who was fired from the online deals site in February amid growing concerns about its financial performance.

Lefkofsky had served as Groupon's chairman and half of the Office of the Chief Executive, along with Vice Chairman Ted Leonsis, since Mason was ousted. Leonsis will now serve as the company's chairman.

Groupon also reported strong second-quarter results on Wednesday, sending shares sharply higher in after-hours trading.

"With two quarters on the job, I'm pleased with the progress we've made in such a short time," Lefkofsky said in a statement. "We continue to gain traction in mobile, with nearly 50 percent of our North American transactions coming from mobile in June."

The company booked a loss of $7.6 million, or 1 cent per share, in the April-to-June period. That's down from earnings of $28.4 million, or 4 cents per share, in the second quarter of 2012.

Adjusted earnings, which exclude stock compensation expenses, were 2 cents per share in the latest period. That matched analysts' average expectations, according to FactSet.

Revenue rose 7 percent to $608.7 million. FactSet says analysts were expecting $606.2 million.

Chicago-based Groupon's stock shot up $1.57, or 18 percent, to $10.29 in after-hours trading. At this rate, the stock could open well above its 52-week high of $9.43, reached in early July. Shares closed regular trading Wednesday at $8.72, up 79 percent since the start of the year.

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