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Redbubble (ASX:RBL) - CEO, Martin Hosking
CEO, Martin Hosking
Source: B&T
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  • Online retailer Redbubble’s (RBL) share price is on the rise after reporting a positive final quarter of the 2020 financial year
  • Marketplace revenue was up 96 per cent (on a currency basis) for the last quarter
  • The increased demand was seen across both of Redbubble’s core marketplace platforms, as well as different geographical jurisdictions and product categories
  • The company is also making structural changes to suit its strategy
  • The will involve staff casts and a reduction in operating costs
  • Already, the company expects to save $5.6 million annually
  • Redbubble closed 25.5 per cent in the green to sell shares for $1.97 each

Online retailer Redbubble’s (RBL) share price is on the rise after reporting a positive final quarter of the 2020 financial year.

Marketplace revenue was up 96 per cent (on a currency basis) for the fourth quarter, while compared to this time last year, revenue is up 34 per cent (also on a currency basis).

Between July 1 2019 and May 31 2020, the operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) profit was $11.9 million, which is up 86 per cent from the year before.

Redbubble says all these reports are on a paid basis and have not been audited.

The increased demand was seen across both of its core marketplace platforms as well as different geographical jurisdictions and product categories.

“The group’s supply chain has managed the growth and orders are being fulfilled within expectations,” the company said.

“Redbubble is continuing to monitor online sales trends and remains mindful of external uncertainties that lie ahead,” it added.

Organisational structure

The company is also changing its organisational structure to suit its strategy. This will involve reductions in employees and operating costs to save costs.

The reorganisation is expected to save $5.6 million annually in operating costs, with a one-off cost of $2.1 million. The savings will be used for Redbubbles core growth initiatives.

A complete and suited set of the financial statements will be reported in August.

Redbubble closed 25.5 per cent in the green to sell shares for $1.97 each at market close.

RBL by the numbers
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