Mercado Libre reported its first-quarter results yesterday. Its net revenues grew 114% to $1.4 billion. It sold 222 million items, an increase of 110.2% compared to the same period in 2020. Mercado Pago processed $14.7 billion in transactions, up 81.8%. However, the e-commerce giant lost $34 million in the quarter, a net loss of $0.68 per share. The foreign exchange loss of $15.1 million is attributable to the additional cost of accessing dollars through an indirect mechanism due to restrictions imposed by the Argentine government on the purchase of dollars at the official exchange rate.
Naranja, the credit card issuer that is part of Grupo Financiero Galicia announced yesterday its transformation into a fully digital company: from now on, it is Naranja X. Currently, more than 5 million users interact with Naranja X. Naranja X's peso account will soon become interest-bearing, and the company will allocate 160 billion pesos ($1.7 billion) for consumer financing in 2021, to further strengthen financial inclusion and enhance the possibilities of providing a better and broader value proposition to its users.
The indigence rate rose from 5.7% in 2010 to 9.8% in 2020. 15.7% in the case of children due to the effects of the pandemic. Without social assistance, this number would have risen to 27% of the population.
The Argentine e-commerce company Mercado Libre entered the world of cryptocurrencies. It did so through the purchase of $7.8 million Bitcoins. It confirmed in the last balance sheet filed with the Securities and Exchange Commission (SEC) of the United States. Days before, it had enabled the purchase and sale of real estate with digital currencies in Argentina. It is part of the treasury strategy.
In April, trade between Argentina and Brazil grew, and for the second consecutive month, the balance was negative for us. April closed with a deficit of $73 million, and the forecast is to close the year with a negative balance of around $1.85 billion.