SINGAPORE, Nov 12 – Shares of Grab Holdings Ltd reportedly rose by up to 15 per cent in US stock market near closing, after the ride-hailing and delivery company increased its earnings forecast for the year.
Finance news Bloomberg reported that the Singapore-based firm is set to benefit from recent cost-cutting efforts, and now projects adjusted full-year earnings of between US$308 million (RM1.4 million) and US$313 million, surpassing its previous estimate of US$270 million.
“We continue to remain bullish as we arrive at the last couple of months of the year,” Grab’s chief financial officer, Peter Oey, told Bloomberg in an interview.
“We’re seeing good conversion, from [earnings before interest, taxes, depreciation and amortisation] to free cash flow, which is another critical piece metric that we look at.”
The report said Grab’s stock reached a high of US$5.04 per unit in after-hours trading, up from a regular session close of US$4.38. This price is however down about 60 per cent from its peak after Grab’s public listing in 2021.
This comes as Grab, Southeast Asia’s largest ride-hailing and delivery firm, is under pressure to show that its focus on profitability after years of expansion is sustainable in the face of strong regional competition.
Bloomberg reported analysts saying the company is striving to balance growth and profitability as it competes with rivals, including Indonesia’s GoTo Group.
Grab reportedly has 42 million monthly users across a market of approximately 650 million people.
