Grab raises annual profit view after strong first-quarter revenue growth

Grab raises annual profit view after strong first-quarter revenue growth

Following reporting higher-than-expected quarterly revenue, a higher-than-expected quarterly profit, and a strong demand for its ride-share services, Grab Holdings increased its full-year profit forecast on Wednesday ( May 15 ).

A major restructuring at Grab, including the reduction of 1, 000 jobs and some of the costs associated with technologies, is assisting the business in advancing toward its goal of producing good free cash flow this year.

CFO Peter Oey stated in an interview with Reuters that a rise in South Asian commerce, along with an increase in business events and music in the last quarter, boosted the demand for ride-share services.

Following the results, which were released in a few days after the marketplaces closed, US-listed shares of Grab increased by 2 percent in lengthy trading.

The Singapore- based bank’s profit rose 24 per share to US$ 653 million in the first quarter ended Mar 31, surpassing experts ‘ projections of US$ 642.4 million, as per LSEG information. Compared to the previous year’s US$ 67 million decline, it reported an altered base income of US$ 62 million.

Grab’s food distribution company, its largest income stream, and the trip- share business grew 19 per cent and 27 per cent, both, outperforming Visible Alpha’s consensus estimates.

One of Southeast Asia’s largest tech companies, Grab, is pleased with their powerful performance, highlighting consumer discretionary spending in the area.

Get today projects an altered core profit between US$ 250 million and US$ 270 million this year, away from its prior forecast of US$ 180 million to US$ 200 million. It maintained its profit forecast at US$ 2.70 billion to US$ 2.75 billion.

The business made a US$ 97 million purchase of its Class A stock as part of a US$ 500 million buyback program that was announced in February.