Connect with us

Published

3 months ago

on

A Deliveroo rider near Victoria station in London, England, on March 31, 2021.

Dan Kitwood | Getty Images

Shares of German food delivery company Delivery Hero fell to a record low Tuesday after announcing it was selling its minority stake in rival firm Deliveroo.

Delivery Hero said late Monday that it would sell 68 million Class A ordinary shares in Deliveroo, one of the U.K.’s largest food-ordering services, at a price of £1.13 per share, or $1.43.

That represents a 7% discount to the £1.22 Deliveroo closed at Monday.

The stake sale will fetch roughly £76.8 million for Delivery Hero. The proceeds represent less than a third of what Delivery Hero paid for the shares when it first bought them in 2021, Reuters reported.

Deliveroo shares reacted negatively to the news, plunging as much as 7% Tuesday. Delivery Hero shares sank nearly 6% to hit a record low.

The German firm said it was selling its stake in Deliveroo to better focus on its allocation of cash.

Deliveroo said in a trading update earlier this month that its 2023 annual earnings would come in “slightly” ahead of the £60 to £80 million, or $76 million to $101 million, it had guided earlier.

The value of orders on its platform were forecast to rise 3%, Deliveroo said at the time, in line with guidance.

Shares of Deliveroo had a decent performance in 2023, climbing over 30%, off the back of a broader recovery in technology shares.

Related Topics:
Continue Reading

Technology

Uber to acquire Foodpanda’s Taiwan business for $950 million, creating a potential monopoly

Published

52 mins ago

on

May 14, 2024

By

Uber to acquire Foodpanda's Taiwan business for 0 million, creating a potential monopoly

TAIPEI, TAIWAN – 2021/07/19: A foodpanda delivery man wearing a face mask rides past a Taiwanese flag ahead of the COVID-19 alert Level 3 restriction lift in Taipei. (Photo by Walid Berrazeg/SOPA Images/LightRocket via Getty Images)

Sopa Images | Lightrocket | Getty Images

Uber Technologies will acquire the Taiwan business of Delivery Hero-owned Foodpanda for $950 million in cash, as Foodpanda focuses on other markets.

The deal, subject to regulatory approval, is expected to close in the first half of 2025, the firms said in a joint statement on Monday.

In a separate agreement, Delivery Hero will sell $300 million in newly issued ordinary shares to Uber.

“We need to focus our resources on other parts of our global footprint, where we feel we can have the largest impact for customers, vendors and riders,” said Niklas Östberg, co-founder and CEO of Delivery Hero.

Pierre-Dimitri Gore-Coty, senior vice president of delivery at Uber, said the Taiwan market is “fiercely competitive” and the acquisition would help them grow in the market “where online food delivery platforms today still represent just a small part of the food delivery landscape.” 

Foodpanda is one of the largest online food and grocery delivery platforms in Asia with a presence in markets including Singapore, Malaysia, Thailand, The Philippines and Hong Kong. In 2016, Germany’s Delivery Hero acquired the company.

Taiwan’s food delivery market is dominated by Foodpanda and Uber Eats. Data from insights platform Measurable AI up till August revealed that Foodpanda had a 52% market share by order volume in Taiwan, while Uber Eats held the remaining 48% share.

The deal would be one of the largest international acquisitions in Taiwan, not including those in the semiconductor chip industry, according to the joint statement.

Delivery Hero said in February it had ended talks to sell its Foodpanda business in selected Southeast Asian markets. Östberg told CNBC the same month that the firm was “happy” to hold on to its Foodpanda business in Southeast Asia “forever.”

– CNBC’s Ryan Browne and Dylan Butts contributed to this report.

Continue Reading

Technology

Tencent posts fastest profit growth in 3 years as online ads, business services offset slower gaming

Published

1 hour ago

on

May 14, 2024

By

Tencent posts fastest profit growth in 3 years as online ads, business services offset slower gaming

Tencent has faced a number of headwinds in 2022 including a Covid-induced slowdown in the Chinese economy and a tougher market for gaming.

Bobby Yip | Reuters

Tencent beat analyst estimates for revenue and profit in the first quarter, thanks to slightly better sales in the Chinese tech giants core gaming business and improved profitability at its advertising and business services division.

Here’s how Tencent did in the March quarter versus LSEG consensus estimates:

  • Revenue: 159.5 billion Chinese yuan ($22 billion) versus 158.4 billion yuan expected.
  • Profit attributable to equity holders of the company: 41.9 billion yuan versus 36.64 billion yuan anticipated.

Tencent’s adjusted net profit was up 62% year-on-year, marking the fastest growth since the March quarter of 2021, according to LSEG data. Revenue jumped 6% year-on-year.

This is a breaking news story. Please check back for more.

Continue Reading

Technology

Sony reports 7% drop in annual profit as PlayStation 5 sales miss trimmed target

Published

4 hours ago

on

May 14, 2024

By

Sony reports 7% drop in annual profit as PlayStation 5 sales miss trimmed target

Sony said sales of its flagship PlayStation 5 console totalled 20.8 million in the fiscal year 2023 slightly lower than an already revised-down 21 million unit target.

Nikos Pekiaridis | Nurphoto | Getty Images

Sony on Tuesday reported a 7% drop in annual profits in the fiscal year 2023, dragged down by a decline in its financial services division.

The company also narrowly missed its forecast for unit sales of its flagship PlayStation 5 gaming console for the full year.

Here’s how Sony did in the March quarter versus LSEG consensus estimates:

  • Revenue: 3.5 trillion yen ($22.4 billion) versus 2.89 trillion yen expected. That represents a 14% increase year-over-year — but the first drop since Sony’s 2020 September quarter, according to LSEG data.
  • Operating profit: 229.4 billion yen versus 236.81 billion yen expected. That marks a 57% jump year-over-year.

The Japanese gaming giant reported 2023 revenue of 13 trillion, an increase of 19% year-over-year.

Sony’s operating profit for the full year, though, came in at 1.2 trillion yen, down 7% year-over-year.

Sony narrowly missed its revised down target for PlayStation 5 sales. The firm said that sales of its flagship console totalled 20.8 million in the fiscal year 2023.

That’s slightly lower than the revised 21 million unit target that Sony gave investors in February. Prior to that, the company had forecast that its PS5 console would sell 25 million units for the full year.

Sony expects even weaker sales of 18 million units of its PS5 in the year ending March 2025, a company executive said, according to Reuters.

It comes after Sony on Monday announced a management shakeup in its Sony Interactive Entertainment (SIE) gaming unit, with the division’s interim CEO Hiroki Totoki becoming chairman of the business.

Long-time Sony executives Hideaki Nishino and Hermen Hulst were appointed CEO of the Platform Business Group and Studio Business Group, respectively — two newly created divisions of SIE.

Financial unit weighs on profit

Sony said its financial services business was the primary segment driving down profit.

In 2023, operating income in the financial services unit came in at 173.6 billion yen, marking a 22.5% year-on-year drop after a firm increase in 2022.

The company also suffered from a decline in its imaging and sensing solutions (I&SS) business, which houses its imaging chips.

Sony’s I&SS business recorded operating income of 193.5 billion yen, down 9% from 2022.

Sony said it’s forecasting a drop in overall group revenue for the current fiscal year. The company expects sales will reach 12.3 trillion yen for the year ending March 2025, down 5%.

Fiscal year 2024 operating income is expected to total 1.28 trillion yen, up 5%, Sony said in its consolidated results.

Continue Reading

Trending