asia

Grab hints at Southeast Asia's economic pain | Reuters


A Grab mototaxi drives on a street in Hanoi, Vietnam October 29, 2018. REUTERS/Kham – RC1F7F631E20

HONG KONG, Sept 14 (Reuters Breakingviews) – Southeast Asia’s pandemic reality may be finally catching up to Grab. The company, whose merger with a blank-cheque company is expected to close in the fourth quarter, pared back read more its full-year forecasts, with adjusted net sales now expected to be $2.1 billion to $2.2 billion, down from the $2.3 billion projected in April. It also cut its gross merchandise value projections. Management warned of lockdown extensions in the countries where Grab operates, as well as Covid-19-induced curbs on movement.

The dampened outlook belies some areas of strength. Second-quarter adjusted net sales rose 92% year-on-year overall to $550 million, with deliveries up 68%. Grab is also gaining traction with its registered GrabFood merchants, which more than doubled, and GrabPay merchants, which nearly tripled. But vaccination rates across the region are still low. Investors will be hoping that Grab’s new initiatives can offset the increasing pain of an unpredictable year. (By Sharon Lam)

On Twitter http://twitter.com/breakingviews

Capital Calls – More concise insights on global finance:

Fake Walmart-Litecoin news cries for regulation read more

UK takes friendly fire in latest vaccine spat read more

Blackstone moves out of China property deal read more

U.S. debt ceiling fight is warming up
Crown Resorts rubs salt into shareholders’ wounds read more

Editing by Antony Currie and Katrina Hamlin

Reuters Breakingviews is the world’s leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.

See also  Asia Dominates Most Expensive Cities for Expats

Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.





READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.  Learn more