SINGAPORE: Grab Holdings Inc, South-East Asia’s ride-hailing and delivery giant, cut projections for 2021 as the region is battling one of the world’s worst Covid-19 outbreaks due to the fast-spreading Delta variant.
The Singapore-based company, which is set to go public in the United States through a deal with a blank-cheque company or SPAC, expects full-year adjusted net sales of US$2.1bil (RM8.7bil) to US$2.2bil (RM9bil), according to a statement yesterday.
That compares with US$2.3bil (RM9.6bil) it forecast in an investor presentation in April.
Grab also expects full-year gross merchandise value of US$15bil (RM62bil) to US$15.5bil (RM64bil), compared with an earlier projection of US$16.7bil (RM65bil).
“The Delta variant has unfortunately hit the region hard,” chief executive Anthony Tan said during the company’s earnings call yesterday.
“South-East Asia now has the world’s highest Covid mortality rate per capita and lockdown measures are still in place across major cities in the region.”
In Vietnam, even food delivery services are being restricted, affecting Grab’s business, he said.
With infections rising as the more contagious Delta variant of Covid spreads, many parts of South-East 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 South-East Asian growth forecast to 4% from 4.4%.
During the second quarter, Grab’s net loss widened to US$815mil (RM3.4bil) from US$718mil (RM3bil) a year earlier.
Revenue more than doubled to US$180mil (RM747mil).
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$40bil (RM166bil) deal – one of the largest-ever mergers with an SPAC – to the fourth quarter as it works on an audit of the past three years’ accounts.
Grab reiterated that the merger is set to close this year.
“We remain on track to becoming a publicly listed company and to complete our business merger with Altimeter Growth Corp in the fourth quarter of this year,” chief financial officer Peter Oey said during the call. — Bloomberg
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