Rocket Internet (FRA: RKET) has reported a net loss of €741.5 million for 2016, more than three times its loss for 2015. However, the Berlin-based ecommerce investor has also managed to reduce losses at some of its holdings, such as furniture retailers Westwing and Home24, and stuck to its target to turn three of its startups profitable by the end of 2017—leading to speculation that flotations might be on the horizon.
Listings are driven by two main factors—the performance of the individual company and the prevailing market conditions. Based on those metrics, cautious optimism is indeed appropriate. Rocket said that across "selected companies" in its focus sectors, the aggregate margin at the level of earnings before interest, tax, depreciation and amortisation improved from -31% in 2015 to -15% in 2016.