Latest news with #BrendanMcDermid
The Star
17 hours ago
- Business
- The Star
Mastercard beats profit estimates on strong travel demand
FILE PHOTO: A screen displays the company logo for Mastercard Inc. on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., February 29, 2024. REUTERS/Brendan McDermid/File photo (Reuters) -Mastercard surpassed Wall Street estimates for second-quarter profit on Thursday, driven by strong consumer spending on travel and leisure. A mix of higher inflation, interest rate pressures and tariff uncertainty has done little to slow American travelers and shoppers so far, offering a boost to payments firms and big banks alike in the first half of 2025. Payments firms are closely tied to everyday consumer behavior, and most transactions - whether for groceries, fuel, or fewer discretionary items - still flow through the same cards and platforms, helping sustain volume, despite some shoppers paring back on non-essential spending. Gross dollar volume - the total value of transactions processed on Mastercard's platform - rose 9% in the quarter. Cross-border volume, which tracks spending on cards outside their country of issue, jumped 15%, pointing to still strong consumer appetite for travel and leisure. The company wrapped up the earnings season for Wall Street's biggest payments processors. Rival Visa posted market-beating results earlier this week, while American Express also managed to surpass Wall Street's expectations. Though analysts caution the momentum may not last if elevated interest rates and rising prices from tariffs begin to strain household budgets, that pressure has yet to show up. In recent years, Mastercard has also diversified its business by expanding into value-added services such as threat intelligence and fraud prevention. Revenue from these services rose 22% on a currency-neutral basis in the quarter. It posted an adjusted profit of $4.15 per share for the three months ended June 30. That compares with Wall Street estimates of $4.03 per share, according to data compiled by LSEG. Mastercard's net revenue jumped 17% on a reported basis to $8.1 billion. It beat estimates of $7.97 billion. Shares of the payments giant were up 1.4% before the bell. (Reporting by Prakhar Srivastava and Manya Saini in Bengaluru; Editing by Sriraj Kalluvila)
GMA Network
3 days ago
- Business
- GMA Network
Spotify sees 12% rise in paid subscribers
A screen displays the logo of Spotify on the floor at the New York Stock Exchange (NYSE) in New York City, December 4, 2023. REUTERS/ Brendan McDermid/ File photo STOCKHOLM, Sweden — Spotify saw paying subscribers rise 12 percent to 276 million customers in the second quarter of 2025, the world's top music streaming service said on Tuesday, though profits fell below expectations. "People come to Spotify and they stay on Spotify. By constantly evolving, we create more and more value for the almost 700 million people using our platform," said Daniel Ek, the Swedish company's founder and CEO. The Swedish company saw a greater-than-predicted 11 percent year-on-year increase in its totally monthly active users to 696 million. Yet operating profit reached €406 million ($468 million)—up 52.6 percent, but well short of its €539-million forecast. Spotify blamed the shortfall on increased spending on salaries, changes in its revenue mix and higher-than-expected social charges. "Social Charges were €98 million above forecast due to share price appreciation during the quarter," the streamer explained in its financial results presentation. Total revenue rose by 10.1 percent to €4.19 billion. The below-expectation profit announcement comes as the streamer has found itself at the center of the debate over music generated by artificial intelligence. The technology's rise has led artists to complain about the prospect of being drowned out by a flood of AI-composed songs. Of the major streaming platforms, only Deezer alerts listeners if a track is entirely conceived thanks to AI, despite the swift explosion in the number of AI-generated songs. When questioned by AFP in late May, Ek insisted that AI did not present a threat to the music industry, and would instead help develop creativity. — Agence France-Presse
The Star
3 days ago
- Business
- The Star
Spotify forecasts third-quarter profit below estimates on higher taxes
FILE PHOTO: A screen displays the logo of Spotify on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., December 4, 2023. REUTERS/Brendan McDermid/File Photo (Reuters) -Spotify forecast third-quarter profit below Wall Street estimates on Tuesday as higher taxes related to employee salaries outweigh upbeat demand for its premium music-streaming plans, sending its shares down 5% in premarket trading. Investors are closely watching the Swedish company's profitability after price hikes, cost cuts and subscriber gains in recent years helped it achieve its first annual profit in 2024. Spotify said it expects operating income of 485 million euros ($561.05 million) in the current quarter, below an estimate of 562 million euros, according to data compiled by LSEG. Its third-quarter monthly active users (MAU) forecast of 710 million was in line with estimates, while its prediction for a 5 million increase in premium subscribers to 281 million was above a Visible Alpha estimate of 279 million. Its board has approved a $1 billion increase to its share repurchase program, raising the total authorization to $2 billion, with $1.9 billion available for buybacks through April 2026. Tough competition in music streaming and podcasts from rivals from Apple and Amazon has also prompted Spotify to increase marketing, which contributed to an 8% increase in operating expenses in the April-to-June quarter. Premium subscribers rose 12% to 276 million in the second quarter, compared with a Visible Alpha estimate of 273 million. Its MAU net additions of 18 million brought the total to 696 million, exceeding expectations. Second-quarter revenue rose 10% to 4.19 billion euros ($4.85 billion), but fell short of an estimate of 4.26 billion euros. Spotify said unfavorable currency movements reduced year-over-year total revenue growth by about 440 basis points in the reported quarter. It forecast third-quarter revenue of 4.2 billion euros, below the estimate of 4.48 billion euros. ($1 = 0.8645 euros) (Reporting by Jaspreet Singh in Bengaluru; Editing by Pooja Desai)
The Star
4 days ago
- Business
- The Star
Figma targets $18.8 billion valuation in US IPO after bumping up price range
FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., July 21, 2025. REUTERS/Brendan McDermid/File photo (Reuters) -Figma raised the proposed price range for its U.S. initial public offering on Monday and is now aiming for a valuation of $18.8 billion, in the latest sign of strong investor appetite for high-growth technology stocks. The design software firm, along with some of its investors, is looking to raise $1.18 billion by selling nearly 37 million shares priced between $30 and $32 each. That compares with its prior proposed price target of between $25 and $28 each. The new valuation puts Figma closer to the $20 billion it had commanded when Adobe agreed to buy it. The Photoshop maker abandoned the deal in December 2023 after facing antitrust roadblocks in Europe and the UK. The revised terms also reflect investors' growing comfort with trade uncertainty, and their willingness to back favored companies. Figma reported $228.2 million in revenue for the three months ended March 31, compared with $156.2 million a year earlier, and its net income jumped three-fold to $44.9 million. After hitting a speed bump when the tariffs were unveiled in April, IPOs have staged a steady recovery. Bankers expect activity to accelerate once the summer lull ends and the fall window opens, driven by strong demand for high-growth listings. Top market heavyweights with a strong read on investor sentiment are also anticipating a more fertile environment. Last week, Blackstone's President and Chief Operating Officer Jon Gray said "the dealmaking pause is behind us." Figma, which is scheduled to price the deal on Wednesday, is expected to trade under the symbol "FIG" on the New York Stock Exchange the next day. Morgan Stanley, Goldman Sachs, Allen & Company and J.P. Morgan are the lead underwriters of the IPO. (Reporting by Manya Saini and Niket Nishant in Bengaluru; Editing by Sriraj Kalluvila)
The Star
24-07-2025
- Business
- The Star
Verizon owes $175 million in patent infringement case, Texas jury says
Hans Vestberg, Chairman and CEO of Verizon, rings the opening bell at the New York Stock Exchange (NYSE) in New York City, U.S., June 30, 2025. REUTERS/Brendan McDermid/File Photo (Reuters) -A federal court in Marshall, Texas, said on Wednesday that U.S. telecom company Verizon Wireless must pay $175 million in damages for violating an inventor's patent rights related to wireless communications technology. The jury's decision in favor of Headwater Research comes just months after the firm secured a $278 million verdict in a separate patent dispute against Samsung over wireless technology, also in the same Marshall, Texas, federal court. Spokespeople for Verizon and attorneys for Headwater did not immediately respond to requests for comment on Wednesday's verdict. Tyler, Texas-based Headwater was founded by scientist and inventor Gregory Raleigh. Headwater said in its complaint in 2023 that its patented technology allows wireless devices to "reduce data usage and network congestion, extend battery life by decreasing power consumption, and enable users to stay connected." Headwater said it shared information about its technology with Verizon under a non-disclosure agreement between 2009 and 2011. The complaint said that Verizon's mobile phones, tablets and cellular networks infringed Headwater's patents. Verizon denied the allegations and argued that the patents were invalid. (Reporting by Blake Brittain in Washington; Editing by Sherry Jacob-Phillips)
