Group updates

As part of Prosus’s commitment to improve overall results and optimise its portfolio in a disciplined manner, eMAG announced a new streamlined organisational structure. The company will centralise all the commercial support activities for Hungary into the operations of its regional marketplace in Romania.   

eMAG’s core business in Romania is already profitable and growing its profits strongly, recording $40 million in Adjusted EBIT, up by almost 50% year-on-year, in the financial year ending March 2024. This new structure will enable eMAG Hungary to also achieve profitability in the second half of the financial year ending 31 March 2025, and propel the entire eMAG Group to profitability for the full year.

Centralising costs regionally enables eMAG to focus its marketplace strategies, while streamlining the cost structure and operations of the entire eMAG Group. eMAG Hungary will continue to service its local customers and entrepreneurs from its Budapest office which will remain home to all marketplace activities and local initiatives.

Operating from a centralised structure coupled with local execution allows eMAG’s partners to benefit from the advantages of being part of the regional eMAG ecosystem, with access to sell to millions of clients across a wider base of Hungary, Romania and Bulgaria, whilst retaining access to selling tools, dedicated programs, logistical and translation support.  

During the past three years, eMAG Group has consolidated its presence throughout the SEE region by building logistics for ecommerce, technology and entrepreneurship as well as convenience services aimed at improving peoples’ lives across the region. The ongoing expansion of the parcel locker network that will reach 8,500 this year, allows eMAG to reach more customers in Romania, Bulgaria and Hungary, while Genius, eMAG’s subscription service which offers free delivery and exclusive offers, saves them time and money. On the backbone of the technology it has created, eMAG is now able to offer a variety of flexible payments methods at check-out directly from customers’ accounts allowing them to buy the desired products whenever they want. These developments have unlocked new business verticals for eMAG Group throughout the SEE region while increasing the range of products offered to customers.

Prosus remains committed to continuing to improve the overall results of the Group and to optimise its portfolio with discipline.

About eMAG:

Founded in 2001, eMAG is a pioneer of the online commerce sector that has developed in Romania, Hungary and Bulgaria with the goal of helping customers across the region save time and money. eMAG generated more than $2.6 billion in Gross Merchandise Value servicing more than 8 million customers across the region in the past year. With an ever-growing range of products made available to customers together with Marketplace partners, eMAG is the place where anyone can search and order anything, anytime, anywhere. Customers across the SEE region benefit from value-added services such as the mobile application, fast delivery at easybox, 30 day return time, fast reimbursement through Instant Money Back, flexible payment services from the eMAG/MyWallet account, and subscription with Genius free shipping. Through eMAG Marketplace, entrepreneurs who sell on the platform have at their disposal a series of programs and tools that help them scale their business in Romania, Bulgaria and Hungary: Fulfillment by eMAG, Genius easybox, eMAG Ads or the campaigns carried out on the platform are just a few examples. For more information about eMAG, please access about.emag.ro.