MercadoLibre CEO flags loan‑book sales, plays down Venezuela expansion

By Lucinda Elliott

BUENOS AIRES, April 29 (Reuters) - MercadoLibre could merchantability parts of its fast-growing indebtedness publication to enactment its fintech business, its main enforcement told Reuters, adding that operations successful Venezuela stay tiny and ‌unchanged, arsenic investors measurement recognition hazard up of first-quarter earnings.

"We could merchantability portion of the indebtedness publication ... successful ‌order to find the close backing tools," Ariel Szarfsztejn said successful an interrogation connected Tuesday successful Buenos Aires, stressing determination were nary plans to merchantability ​core businesses oregon dismantle fintech limb Mercado Pago.

Shares successful Latin American e-commerce elephantine MercadoLibre fell earlier this twelvemonth arsenic investors grew much cautious astir accelerated credit-card maturation astatine Mercado Pago and rising concern costs. In February, the institution missed quarterly nett estimates aft heavier spending connected logistics, escaped shipping and recognition cards.

"The toughest situation for a recognition portfolio that is increasing truthful accelerated is ‌having the close backing mechanisms successful bid to ⁠scale," Szarfsztejn said.

MercadoLibre is deploying generative artificial quality to amended recognition decisions, helium added, allowing the institution to people customers amended and lend wealth much effectively.

Szarfsztejn besides played down expectations astir a ⁠warehouse the institution opened successful China precocious past year, calling it a "test and learn" determination that "doesn’t determination the needle" connected concern spending.

VENEZUELA STANCE UNCHANGED

Szarfsztejn, 44, who took implicit successful January from co-founder Marcos Galperin, offered MercadoLibre's clearest effect yet connected Venezuela aft governmental upheaval ​earlier ​this twelvemonth prompted investors to reassess the country.

"We person a tiny ​operation there. It's operating normally," helium said, adding that ‌MercadoLibre runs lone an e-commerce marketplace successful Venezuela and does not actively run fintech services there.

Companies from vigor to banking are taking a caller look astatine Venezuela pursuing the U.S. ousting of President Nicolas Maduro and moves by Washington to easiness immoderate fiscal restrictions.

Szarfsztejn said MercadoLibre, which has operated successful Venezuela for implicit 2 decades but excluded the state from its main fiscal results successful 2017 owed to superior controls, has seen nary worldly developments that would alteration its strategy.

"The infinitesimal successful which we spot changes ‌in the environment, that volition let america to bash thing antithetic ​from what we are doing, we volition effort to seizure that," Szarfsztejn ​said.

The institution has not engaged with U.S. authorities connected ​Venezuela, helium said, adding that Brazil and Mexico stay priorities.