Grab swings to $25.9 million profit in Q2 as revenue beats estimates
Grab reported revenue of US$819 million for the six months to June 30, above analysts' expectations of US$811.3 million.
Bengaluru - Grab Holdings beat Wall Street expectations for second-quarter revenue on July 30, as consumers boosted spending on its ride-hailing and food delivery platform despite global economic uncertainty.
This drove it to a profit of US$20 million ($25.9 million) for the quarter, compared with a US$68 million loss in the same period a year earlier.
Grab's push to turn its platform into a superapp, integrating ride-hailing, food and grocery delivery, and other digital services, has drawn a growing number of users willing to pay for its subscription plans.
While ongoing US trade negotiations have cast a cloud over global economic stability, leading to concerns about tariffs and elevated costs in South-east Asia, the Singapore economy has remained resilient. It grew 4.3 per cent in the second quarter, avoiding a technical recession.
'What we're seeing is that the more you make our products more affordable, it drives that growth, and it also shields us from some of the macro that you're seeing across the globe,' Grab chief financial officer Peter Oey told Reuters.
The company has been attempting to lure price-sensitive consumers to its ride-hailing platform while increasing the number of drivers to keep pace with a growing userbase.
Grab reported revenue of US$819 million for the six months to June 30, above analysts' expectations of US$811.3 million, according to LSEG data.
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The company noted its strong performance in Indonesia, a market it had previously described as underpenetrated, aiming to capitalize on the country's large population and grow market share.
Mr Oey said Indonesia is a profitable market for the company, which seeks to double down on investing in the country.
The online service market in South-east Asia has been consolidating, with large players acquiring smaller firms to grow their product portfolios.
Reuters reported in May that Grab was exploring acquiring smaller Indonesian rival GoTo, but Mr Oey reiterated that the company is not in discussions with them. REUTERS
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