Ceconomy, the owner of MediaMarkt and Saturn, has had a strong quarter. Its own online sales increased by almost 10 percent. Additionally, MediaMarkt is growing thanks to external online sales partners: the trading volume on its marketplace has more than doubled in a year.
In the third quarter of its fiscal year, Ceconomy saw revenue increase by 6.6 percent to 4.92 billion euros, with comparable sales growing by 5.2 percent. The company reports “substantial market share gains” in a slightly growing market.
Profitability
Ceconomy also presented better profitability, aiming for an adjusted EBIT of around 300 million euros for the entire fiscal year, and the highest Net Promoter Score (NPS) in its history: the NPS grew by 6 points to 61.
Ceconomy reports its highest NPS ever.
CEO Karsten Wildberger attributes the good results partly to the European Football Championship, which boosted TV sales. He also points to the revenue from marketplaces and retail media.
External sellers
After testing, Ceconomy’s flagship MediaMarkt opened its doors to partner sellers in the second half of 2021 in its home market of Germany, where marketplaces are dominant. Austria and Spain followed soon after, with the Netherlands (March) and Italy (July) opening this year. In the past quarter, the gross merchandising value (GMV) of the marketplace “more than doubled”, according to Ceconomy, without specifying exact amounts.
Marketplace strategy
Marketplace trading volume in the last full fiscal year (2022-2023) reached 137 million euros, Ceconomy previously reported. It was projected to grow to 750 million euros in three years.
MediaMarkt aims for a GMV of 750 million euros by 2026.
The doubled quarterly earnings from the marketplace indicate that MediaMarkt is on track with its marketplace strategy. Additionally, revenue from retail media, the sale of advertising space on MediaMarkt’s websites, is significantly rising. Meanwhile, Ceconomy’s online sales share has grown to 22.2 percent.
