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Grab Q2 loss widens to $1.09 billion, cuts full-year outlook on Covid-19 spread


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SINGAPORE (THE BUSINESS TIMES) - Grab sank deeper into the red in its second quarter, even as revenue more than doubled. 

South-east Asia’s ride-hailing and delivery giant cut its full-year projections for several key metrics this year, citing renewed uncertainty amid the Covid-19 pandemic.

It posted a net loss of US$815 million (S$1.09 billion) for the three months ended June 30, exceeding the US$718 million net loss recorded a year earlier. This was due mainly to an increase in interest expense on Grab’s convertible redeemable preference shares, a non-cash item.

Grab's revenue for the quarter swelled 132 per cent year on year to US$180 million. The bulk of US$118 million in revenue came from the mobility segment, where revenue jumped 128 per cent.

The deliveries segment was up 92 per cent to hit US$45 million, while the company’s financial services contributed US$6 million.

“We had a strong quarter with double- and, in some cases, triple-digit growth year-over-year across all of our core verticals. This was in spite of a worsening Covid-19 environment, which saw many South-east Asian countries tightening movement restrictions as cases surged,” said Mr Anthony Tan, group CEO and co-founder.

 
 
 

Grab's total gross merchandise value (GMV), a metric used to measure transaction volumes, jumped 62 per cent to a record US$3.9 billion. GMV for deliveries grew 58 per cent to US$2.1 billion, while GMV for mobility rose 93 per cent to US$685 million.

“Our deliveries business continues to outperform and is growing rapidly with the addition of new offerings such as GrabMart and GrabSupermarket, and we expect to continue investing heavily in this segment,” Mr Peter Oey, Grab’s chief financial officer, said. 

Grab expects to report group-level adjusted net sales of US$2.1 billion to US$2.2 billion, a step down from the US$2.3 billion it initially projected in April. It expects full-year gross merchandise value of US$15 billion to US$15.5 billion, trimmed from an earlier forecast of US$16.7 billion.

Grab also forecast adjusted Ebitda (earnings before interest, taxes, depreciation and amortisation) loss of US$0.7 billion to US$0.9 billion for this year compared with a previously projected Ebitda loss of US$0.6 billion.

“Grab’s full-year 2021 outlook anticipates an extension of partial and complete lockdowns throughout several countries where Grab operates as a result of the continuing spread of Covid-19,” the company said.

As at end-June, Grab had US$5.3 billion in cash and cash equivalents, up from US$3.7 billion as of end-2020. Total outstanding debt was US$2.1 billion. This was primarily due to the closing of Grab’s first senior secured term loan facility of US$2 billion at the end of January.

The second quarter results come as Grab prepares to go public in the United States through a record deal with special purpose acquisition company (Spac) Altimeter Growth

Grab said the US$39.6 billion merger is still expected to be completed in the fourth quarter. The deal was postponed from the third quarter as Grab works on a review of its financials.

• With additional information from The Straits Times

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This was due mainly to an increase in interest expense on Grab’s convertible redeemable preference shares, a non-cash item.

 

@socrates469bc

Sir could u pse explain in simple terms what & how is the key attribute? 

 

s$1.09B lost in 3mths is huge.  what is that "interest expense"? 

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16 minutes ago, Bigbird said:

 

@socrates469bc

Sir could u pse explain in simple terms what & how is the key attribute? 

 

s$1.09B lost in 3mths is huge.  what is that "interest expense"? 

 

i guesstimate grab's quarterly interest payment shld be ard usd500m based on full yr adjusted ebita of usd1bln loss.

 

from how i read the financials quoted by ShT, i guesstimate interest expense most likely increased by usd100m this quarter due to the convertible redeemable preference share and whether the interest increase is 1-off, i need to know how the hybrid is structured and the amount issued.

 

convertible redeemable preference share can be parked under equities or liabilities or combination of both and depending on how it is structured, u can even add in a interest payment delay/conversion clause or mechanism into it. so even thot there is an increase in interest payment, there maybe no corresponding increase in liabilities due to it being classified as equity and i believe grab has most likely parked the convertibles under equities.

 

i must admit that grab's accountant did some very creative accounting to make everything look good but there is something in there that tells me of a rat.

 

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21 hours ago, socrates469bc said:

 

i guesstimate grab's quarterly interest payment shld be ard usd500m based on full yr adjusted ebita of usd1bln loss.

 

from how i read the financials quoted by ShT, i guesstimate interest expense most likely increased by usd100m this quarter due to the convertible redeemable preference share and whether the interest increase is 1-off, i need to know how the hybrid is structured and the amount issued.

 

convertible redeemable preference share can be parked under equities or liabilities or combination of both and depending on how it is structured, u can even add in a interest payment delay/conversion clause or mechanism into it. so even thot there is an increase in interest payment, there maybe no corresponding increase in liabilities due to it being classified as equity and i believe grab has most likely parked the convertibles under equities.

 

i must admit that grab's accountant did some very creative accounting to make everything look good but there is something in there that tells me of a rat.

 

 

let's say usd$500M goes to accrued interest on investors preferred shares sounds too far fetch imo.  

 

what is the typical market interest rate?

 

something just doesn't make sense! :hmm:

Edited by Bigbird
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  • Net loss, which includes non-cash items related to interest accrued on Grab’s convertible redeemable preference shares and depreciation, was $(652) million, compared to $(771) million in Q1 2020.

https://www.grab.com/sg/press/others/strong-first-quarter-2021-results/

 

This is Q1 (2021) financials. 

 

Why every quarter reporting, there's >$500M payout on preferred shares? 

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27 minutes ago, Bigbird said:

 

let's say usd$500M goes to accrued interest on investors preferred shares sounds too far fetch imo.  

 

what is the typical market interest rate?

 

something just doesn't make sense! :hmm:

 

15 minutes ago, Bigbird said:

https://www.grab.com/sg/press/others/strong-first-quarter-2021-results/

 

This is Q1 (2021) financials. 

 

Why every quarter reporting, there's >$500M payout on preferred shares? 

 

if u read grab press release, did u see any equities?????

 

so limpeh me is rite on how grab categorize its convertibles.

 

btw, limpeh me dont have accounting degree.

 

wahahahahahaha

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51 minutes ago, socrates469bc said:

 

 

if u read grab press release, did u see any equities?????

 

so limpeh me is rite on how grab categorize its convertibles.

 

btw, limpeh me dont have accounting degree.

 

wahahahahahaha

 

so if I'm not wrong, grab borrowed cash and in return give the lender preferred shares which it is redeem  over a term period.  

 

Is this what's going on? 

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does grab own any car fleet to rent out? 

 

I read some time ago grab has a spanking new HQ. what's the cost siah? 

 

$181M  only

https://www.channelnewsasia.com/business/grab-new-headquarters-in-singapore-one-north-910126

 

I trying to figure out why the lenders so "big balls"! 🏀🏀  what if it's another Hin Leong clone? 

Edited by Bigbird
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On 9/14/2021 at 8:06 PM, The_King said:

It posted a net loss of US$815 million (S$1.09 billion) for the three months ended June 30, exceeding the US$718 million net loss recorded a year earlier. This was due mainly to an increase in interest expense on Grab’s convertible redeemable preference shares, a non-cash item.

Grab's revenue for the quarter swelled 132 per cent year on year to US$180 million. 

 

Q2 loss US$815... revenue US$180...

 

wtf... they are burning 4 times of their revenue... 

still got people want to buy their ipo ah?

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14 hours ago, meng.huat said:

 

Q2 loss US$815... revenue US$180...

 

wtf... they are burning 4 times of their revenue... 

still got people want to buy their ipo ah?

 

kor kor dont know singapore full of rich kgks?????

 

this supposedly sakti kia just burn sgd1.9bln kim chua of his laopeh's in tiongland.

 

Hi Life!

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15 hours ago, Bigbird said:

 

so if I'm not wrong, grab borrowed cash and in return give the lender preferred shares which it is redeem  over a term period.  

 

Is this what's going on? 

 

15 hours ago, Bigbird said:

does grab own any car fleet to rent out? 

 

I read some time ago grab has a spanking new HQ. what's the cost siah? 

 

$181M  only

https://www.channelnewsasia.com/business/grab-new-headquarters-in-singapore-one-north-910126

 

I trying to figure out why the lenders so "big balls"! 🏀🏀  what if it's another Hin Leong clone? 

 

bird didi dont know singapore is full of very rich kgks?????

 

Making a splash for a good cause, Life & Culture - THE BUSINESS TIMES

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Grab Grab

 

DATE INVESTORS AMOUNT ROUND
Total Funding €12.3b
- N/A -
Not yet verified
Jan 2013 N/A SEED
Jan 2013 N/A SEED
Not yet verified
Sep 2013 N/A SERIES A
May 2014 $15m SERIES B
Oct 2014 $65m SERIES C
Dec 2014 $250m
Valuation: $1.0b
SERIES D
Dec 2014 $250m SERIES D
Not yet verified
Dec 2014 N/A $250m SERIES D
Not yet verified
Aug 2015 N/A $350m SERIES E
Not yet verified
Aug 2015 $350m
Valuation: $1.5b
SERIES E
Aug 2015 $350m SERIES E
Not yet verified
Sep 2016 $750m
Valuation: $3.0b
SERIES F
Dec 2016 N/A GROWTH EQUITY
Jun 2017 N/A SECONDARY
Jul 2017*
$2.0b
Valuation: $4.0b
SERIES G
Oct 2017*
$700m DEBT
Jan 2018 N/A
Valuation: $6.0b
SERIES G
Jun 2018 $1.0b
Valuation: $10.0b
GROWTH EQUITY
Jun 2018 $370m DEBT
Aug 2018 $1.0b
Valuation: $11.0b
GROWTH EQUITY
Oct 2018*
N/A GROWTH EQUITY
Oct 2018 $200m GROWTH EQUITY
Nov 2018 $250m
Valuation: $2.7b
GROWTH EQUITY
Nov 2018 $50m GROWTH EQUITY
Dec 2018*
$150m
Valuation: $11.0b
SERIES H
Jan 2019 $200m GROWTH EQUITY
Jan 2019 $350m LATE VC
Mar 2019*
$1.5b
Valuation: $14.0b
SERIES H
Jun 2019 $300m
Valuation: $14.3b
SERIES H
Jul 2019 N/A SERIES H
Feb 2020 $856m
Valuation: $15.0b
LATE VC
Aug 2020 $200m
Valuation: $14.3b
GROWTH EQUITY
Feb 2021 N/A LATE VC
Feb 2021 $2.0b DEBT
Apr 2021 $500m
Valuation: $39.6b
SPAC IPO
Apr 2021 $4.0b
Valuation: $39.6b
SPAC PRIVATE PLACEMENT

https://app.dealroom.co/companies/grab

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