Uber's revenue surged in the first quarter of the year, underpinned by a recovery in its ride-hailing and delivery businesses in the January to March period.
The California-based company’s revenue in the three months to the end of March soared 136 per cent on an annualised basis to more than $6.9 billion, surpassing analysts’ estimate of $6.1bn, as gross bookings grew 35 per cent annually to $26.4bn.
Uber was trading almost 7 per cent down at $27.5 a share in premarket trading on Tuesday. The company’s stocks are down more than 33 per cent since the start of the year.
The company reported adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of $168 million during the quarter, compared with a loss of $359m in the prior year period. The results marked the company’s third profitable quarter.
Net loss in the quarter soared to $5.9bn compared to $108m in the same period in 2021. That includes a $5.6bn headwind relating to Uber’s equity investments, primarily due to unrealised losses related to the revaluation of Uber’s Grab, Aurora and Didi stakes, the company said on Wednesday.
“Our results demonstrate just how much progress we have made navigating out of the pandemic and how the power of our platform is differentiating our business performance,” said Dara Khosrowshahi, chief executive of Uber.
Throughout the Covid-19 pandemic, Uber’s overall business primarily relied on its delivery unit, which includes Uber Eats. However, its mobility division's revenue slightly surpassed delivery sales in the last quarter.
Mobility business accounted for about 36.7 per cent of the company's overall revenue in the quarter, with mobility sales surging 195 per cent annually to more than $2.5bn.
Uber's delivery business grew 44 per cent annually to $2.5bn in the three-month period, while its freight division jumped 505 per cent to $1.8bn.
“In April, mobility gross bookings exceeded 2019 levels across all regions and use cases. There has never been a more exciting time to innovate at Uber and we are focused on executing our strategy to grow our platform profitably,” Mr Khosrowshahi said.
Uber’s delivery gross bookings increased 12 per cent yearly during the first quarter to $13.9bn and mobility gross bookings surged 58 per cent to $10.7bn.
Airport gross bookings represented 13 per cent of mobility gross bookings in the quarter, compared to 15 per cent before the pandemic, outpacing the segment’s recovery as consumer travel trends improved, the company said.
Uber's revenue in the US and Canada accounted for 66.6 per cent of the company's total sales in the first quarter, jumping almost 147 per cent yearly to more than $4.6bn.
Sales grew 43 per cent in Latin America to $432m and nearly 400 per cent in Europe, the Middle East and Africa to $1.1bn. Sales in the Asia-Pacific region increased about 39 per cent to $733m.
“We are pleased with our first-quarter results, with outperformance of our quarterly guidance and strong incremental margins,” said Nelson Chai, Uber’s chief financial officer.
“With free cash flow approaching breakeven in the first quarter, we now expect to generate meaningful positive free cash flows for full-year 2022.”
The company said unrestricted cash and cash equivalents were at $4.2bn as of March 31, a quarterly drop of almost 2.3 per cent. Uber’s net cash provided by operating activities stood at $15m.
Uber expects gross bookings of $28.5bn to $29.5bn with an adjusted Ebitda of $240m to $270m in the current quarter ending June 30.
The number of monthly active platform consumers reached 115 million from January to March, jumping 17 per cent annually but dropping 2.5 per cent compared with the previous quarter.
Trips during the first quarter period grew 18 per cent year-on-year to 1.71 billion, or about 18.9 million trips per day on average, Uber said.
Drivers and couriers earned nearly $9bn in the quarter, up 39 per cent on an annual basis.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
TOURNAMENT INFO
Fixtures
Sunday January 5 - Oman v UAE
Monday January 6 - UAE v Namibia
Wednesday January 8 - Oman v Namibia
Thursday January 9 - Oman v UAE
Saturday January 11 - UAE v Namibia
Sunday January 12 – Oman v Namibia
UAE squad
Ahmed Raza (captain), Rohan Mustafa, Mohammed Usman, CP Rizwan, Waheed Ahmed, Zawar Farid, Darius D’Silva, Karthik Meiyappan, Jonathan Figy, Vriitya Aravind, Zahoor Khan, Junaid Siddique, Basil Hameed, Chirag Suri
Fixtures
Friday Leganes v Alaves, 10.15pm; Valencia v Las Palmas, 12.15am
Saturday Celta Vigo v Real Sociedad, 8.15pm; Girona v Atletico Madrid, 10.15pm; Sevilla v Espanyol, 12.15am
Sunday Athletic Bilbao v Getafe, 8.15am; Barcelona v Real Betis, 10.15pm; Deportivo v Real Madrid, 12.15am
Monday Levante v Villarreal, 10.15pm; Malaga v Eibar, midnight
Russia's Muslim Heartlands
Dominic Rubin, Oxford
Anghami
Started: December 2011
Co-founders: Elie Habib, Eddy Maroun
Based: Beirut and Dubai
Sector: Entertainment
Size: 85 employees
Stage: Series C
Investors: MEVP, du, Mobily, MBC, Samena Capital
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
