Shaun Bonett bought into Prezzee in 2015 and has slowly increased his control over the business. New figures reveal it lost $79 million in the 18 months to December 31.
Rich Lister Shaun Bonett’s troubled gift card company Prezzee, which he has previously claimed is worth $1 billion, has reported a $79 million loss.revealed the company was dropped by Amazon as part of an agreement to sell its gift cards in the US
after a dispute with the tech giant. Amazon cards are one of the most popular gift cards among American customers.Prezzee operates an app and website allowing customers to buy, send and store digital gift cards for retailers around the world, including Apple and David Jones. It is largely owned by Mr Bonett, the company’s chairman and chief executive, who has previously spruiked a valuation of more than $1 billion as Prezzee focuses on growth in the US and Britain.
Mr Bonett bought into Prezzee, founded by Claire Morris and Matt Hoggett, in 2015 and has slowly increased his control over the business.Financial ReviewThe company has previously blamed Australian accounting standards for unflattering financial results, as they do not allow Prezzee to book “breakage” upfront, which is how gift card companies make money. Breakage is the dollar value of unused card balances. Under Australian rules, the value of the card is treated as a liability until it is used.
“If I sell a $100 gift card, it’s $100 in cash and $100 in liabilities until the card is used. Before then, we can’t get it off our balance sheet as a liability,” the company said through a spokesman earlier this year.covers private companies and family offices from the AFR's Sydney newsroom. Primrose was previously a correspondent for the Financial Times and covered foreign affairs and politics in Canberra.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Archibald finalist Shaun Gladwell went to extraordinary lengths to paint Julian AssangeThe WikiLeaks founder is the unlikely subject of a finalist in this year’s Archibald Prize. Here's how artist Shaun Gladwell covertly sketched him inside the walls of Belmarsh Prison.
Read more »
Solar and wind power: DIF’s ageing funds ignite $1b renewables auction; Cbus rolls inCbus, sources said, joined DIF’s selldown to avoid contemplating life on the register with an unknown major shareholder.
Read more »
‘It can work’: America’s surprising cricket history and bold, $1b bid to go ‘mainstream’Cricket: The USA's Aaron Jones spanked 94 unbeaten including 10 phenomenal 6s in a World Cup opener against Canada.
Read more »
Wylie’s Tanarra eyes $1b for new credit fund, snares ex-HSBC bankerThe firm’s latest tilt at private credit will provide long-term loans for investment-grade companies that typically raise capital in overseas bond markets.
Read more »
Morgan Stanley Infra wins in MinRes’ $1b pit-to-port haul road auctionThe iron ore and lithium miner has had a great deal riding on the sale, which analysts say would materially lower the mining group’s debt levels.
Read more »
32 years after Mabo: ‘Disgraceful’ government neglect costs Indigenous funds $1bTwo big government funds set up to benefit Indigenous people without native title rights were shackled for decades by the investment equivalent of stuffing money under a mattress.
Read more »