Short-Target Jumia Technologies Slides After Losses Mount

(Bloomberg) -- Jumia Technologies AG tumbles 18% in early trading after first-quarter operating losses widened compared to the year prior.

The increased loss in the first three months of the year came in the company’s first results since going public and less than a week after Citron Research attacked it as a short target. Those comments wiped off more than a quarter of the company’s market value in the three trading sessions prior to Monday’s market open.

“We will not be distracted from executing on our strategy and carrying out our mission by those who seek to create doubts to profit at our expense and that of our long-term stakeholders,” the company’s co-chief executive officer Sacha Poignonnec said on the call with analysts.

While company management defended its platform and referred to the results as “excellent,” Wall Street analysts remained quiet immediately following the publication of the latest quarter’s figures.

Read more: Silence Is Deafening as Citron Takes Aim at Amazon of Africa

The company that has been dubbed the Amazon.com Inc. of Africa reported first-quarter revenue of 31.8 million euros compared to 28.3 million euros the year prior. Jumia remains up more than 35% from an April public offering, despite shedding more than half of its market value during an eight-day slump.

• First-quarter operating loss widened to 45.5m euros from a loss of 34.3m euros a year earlier
• 1Q rev. 31.8m euros vs 28.3m euros y/y
• 1Q first party rev. 15.6m euros vs 19.8m euros y/y
• NOTE: May 9, Jumia Tech Plunges as Citron Calls It ‘Most Obvious Fraud’ Ever

Story Link: Jumia Tech Declines Pre-mkt After 1Q Operating Loss Widens

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