By Michael Susin
THG, the U.K. e-commerce company, has announced that it stands by its 2023 adjusted Ebitda guidance, despite reporting a wider pretax loss for the first half of the year. This loss was primarily due to increased costs.
The Hut Group reiterated its expectation to achieve 2023 adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (Ebitda) in line with the market consensus of £119.1 million ($148.7 million). This metric excludes exceptional and one-off items.
The company also anticipates revenue growth between minus 5% and 0%.
During the first half of the year, THG reported a pretax loss of £133.0 million, compared to a loss of £108.2 million during the same period last year. Revenue decreased from £1.07 billion to £969.2 million.
However, adjusted Ebitda rose to £47.1 million from £32.3 million, surpassing the company's expectations.
"We are pleased to see that our strategy of prioritizing consumer support for 2022, even at the expense of short-term margins, is yielding positive results," stated THG.