Uber performed above average in the recent quarter and posted historically good numbers. For example, turnover increased by almost 50 percent to around 8 billion euros and a net profit of almost 555 million euros was achieved.
According to Actiam stock analyst Corné van Zeijl, the profit can be attributed to the interests Uber once invested in. “They work much better, hence the profit,” says Van Zeijl. ‘But we prefer not to do it for book profits. Of course it’s about the operational state of things.’
Van Zeijl points out that it’s much better than last year, although he mentions that the coronavirus pandemic was still in full swing last year. “So people are booking far fewer Uber rides.”
Food is more popular
The boon for Uber lies in meal delivery, says Van Zeijl. It scored better than analysts initially thought. And that’s in stark contrast to the taxi side of the business, where there’s been a setback. The same setback was previously seen at competitor Lyft, where a cab ride became 1% cheaper on average. At Uber, there’s a bigger decrease: A ride there costs an average of $13.90, five percent less than before.
In addition to its meal delivery and taxi operations, Uber Technologies – as its parent company is called – has made other investments as well. And this is where the biggest gains were made, according to Van Zeijl. “Now they’re making a profit from the investments,” he says. “However, operating income is $665 million, which is much higher than analysts forecast.” According to Van Zeijl, analysts assumed 619 million. “And you actually have to take it out of that,” he continues. ‘Operating profit still needs to be deducted from taxes, interest, depreciation, so it’s not net profit yet. But if you want to look at the company from an operational point of view, you have to look at the operating result.’
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
