Grab said it “remains cautious of the renewed uncertainty of movement restrictions in Southeast Asia related to Covid-19.” The full-year outlook “anticipates an extension of partial and complete lockdowns throughout several countries where Grab operates as a result of continuing spread of Covid-19.”
With infections rising as the more contagious delta variant of Covid spreads, many parts of Southeast Asia, home to 650 million people, have reimposed curbs on movement that hamper consumer-reliant economies. Lockdowns have devastated businesses and dealt a setback to the region’s middle class. In July, the Asian Development Bank downgraded its Southeast Asian growth forecast to 4% from 4.4%.
During the second quarter, Grab’s net loss widened to US$815 million from US$718 million a year earlier. Revenue more than doubled to US$180 million.
Grab reported its second quarterly financial results as it prepares to merge with Altimeter Growth Gorp., the special purpose acquisition company of Brad Gerstner’s Altimeter Capital Management. Grab has postponed the US$40 billion deal -- one of the largest-ever mergers with a SPAC -- to the fourth quarter as it works on an audit of the past three years’ accounts.
Grab said Tuesday the planned merger with Altimeter is expected to close in the fourth quarter.
Key Insights
- Adjusted net sales, a revenue measure that doesn’t comply with the International Financial Reporting Standards, rose 92% to US$550 million in the second quarter.
- Second-quarter GMV grew 62% to record US$3.9 billion, led by mobility services
- Deliveries revenue was US$45 million, up 92% from a year ago.
- Mobility revenue was US$118 million, up 129% from a year ago.
- Financial services revenue was US$6 million, up 156% from a year ago.
Get More
- Grab expects demand for mobility services to improve in the coming quarters as vaccination rates increase across the region.
- Grab started an online supermarket in the Philippines in September, offering consumers next-day delivery of groceries
- Grab also plans to launch 10 new GrabKitchens in the second half of this year.
Photo: Bloomberg
