SAO PAULO (Reuters) – South American e-commerce giant MercadoLibre Inc on Thursday reported a fourth-quarter net profit of $164.7 million; up from the loss it posted in the same period last year, following a solid performance by its fintech unit.
The Argentina-based company, which operates in 18 countries across Latin America, posted a net revenue of $3.0 billion – slightly above a Refinitiv estimate of $2.9 billion, and a 56.5% jump year-on-year in constant currency (40.9% in dollars).
In particular, its fintech unit saw net revenue growth of 92.7% in local currency (73.5% in dollars) to $1.3 billion, supported by the consolidation of its financial services across Latin American countries and growth in loans.
Total Payment Volume (TPV) via Mercado Pago grew 79.5% in constant currency (45.3% in dollars) to reach $36.0 billion.
The company’s loan portfolio, meanwhile, reached $2.8 billion in the quarter.
Indeed, the quarter marked a new earnings record for its e-commerce and fintech businesses, the company said in a statement, despite the uncertainty related to consumption, interest rates and inflation over the last 12 months.
In commerce, net revenues hit $1.7 billion, up 22.3% in dollar terms, in the period.
The company also said the Gross merchandise volume (GMV) – a key metric in the e-commerce industry – was up 34.7% in constant currency (20.8% in dollars) to hit $9.6 billion.
“We strengthened our leadership position in e-commerce, gaining market share throughout the operation, especially in Brazil and Mexico,” said financial chief Pedro Arnt.
MercadoLibre said it reached 96.6 million unique active users at the end of the fourth quarter, up 17.5% year-over-year.
In the fourth-quarter last year, the company posted a net loss of $46.1 million.
(Reporting by Andre Romani; Writing by Carolina Pulice; Edited by Isabel Woodford)
