Feeds

Jungle.com inches to break-even

E-commerce still a costly business

  • alert
  • submit to reddit

GUS, parent company of Argos and Jungle.com, has released its interim results, and announced an 11 per cent increase in profit and 7.8 per cent increase in sales to £2.9 billion.

However, in an almost identical statement to its last results announcement in July, it has removed Jungle.com's sales and its Argos Additions Net effort from its e-commerce sales and proudly announced they have trebled over last year.

E-commerce sales for the group - comprising online and digital TV sales from Argos and GUS home shopping catalogues - have risen from £20 million to £65 million.

However Jungle has not reached profitability, despite predictions made by founder Steve Bennett when it was bought that it would be in the black by April 2001. Sales at the online consumer electronics retailer fell three per cent to £27m in the first, but due to staff cuts and cost-cutting, operating profit and margin were increased. Continued costs still saw it make a "small operating loss".

As for Argos Additions, sales were "in line with expectations" at £63 million, but losses increased as the company expanded nationwide.

GUS' chief exec John Peace made no reference to his e-commerce ventures save that the company had invested in several new initiatives. ®

Related Stories

GUS online sales grow threefold
GUS buys Jungle for £37 million

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.