Latest news with #LSEG-compiled
Business Mayor
02-05-2025
- Business
- Business Mayor
Oil major Shell launches $3.5 billion share buyback after first-quarter profit beat
Global Economy May 2, 2025 The Shell gas station logo is displayed on February 13, 2025 in Austin, Texas. Brandon Bell | Getty Images News | Getty Images British oil giant Shell on Friday reported stronger-than-expected first-quarter profit and kept the pace of its share buyback program, even as earnings fell by more than a quarter compared to the same period last year. Shell reported adjusted earnings of $5.58 billion for the first three months of the year, beating analyst expectations of $5.09 billion, according to an LSEG-compiled consensus. A separate, company-provided analyst forecast had expected Shell's first-quarter profit to come in at $4.96 billion. Shell reported adjusted earnings of $7.73 billion over the same period last year — around 28% higher than first-quarter 2025 — and $3.66 billion for the final three months of 2024. Shares of Shell traded 2.6% higher at 1:52 p.m. London time. Big Oil's shareholder returns have been a hot-button issue for investors, particularly as industry profits continue to fall from record highs in 2022. A weak demand outlook, falling crude prices and U.S. President Donald Trump's fast-changing trade policy have rattled investor sentiment in recent months. For its part, Shell on Friday announced another $3.5 billion share buyback program, which it expects to complete over the next three months. It marks the 14th consecutive quarter of at least $3 billion in buybacks, the company said. By contrast, British rival BP on Tuesday lowered its share buyback as first-quarter profit fell short of analyst expectations. Shell CEO Wael Sawan described the earnings as 'another solid set of results.' 'Our strong performance and resilient balance sheet give us the confidence to commence another $3.5 billion of buybacks for the next three months, consistent with the strategic direction we set out at our Capital Markets Day in March,' Sawan said in a statement. Shell reaffirmed its reduced annual investment budget of $20 billion to $22 billion for 2025. In March, Shell had announced plans to increase shareholder returns and cut spending, doubling down on its liquified natural gas (LNG) push. Oil prices Oil prices have fallen in recent months on demand fears. International benchmark Brent crude futures with July delivery traded at $61.78 per barrel on Friday morning, roughly 0.6% lower for the session. That's down from around $83 per barrel a year ago. Analysts at Bank of America said Big Oil's first-quarter results season had been overshadowed by speculation suggesting that OPEC kingpin Saudi Arabia was no longer willing to prop up oil prices. In a research note published Friday, analysts at the Wall Street bank reiterated their sector strategy view of preferring the likes of Shell, France's TotalEnergies and Norway's Equinor among Europe's energy majors. 'Stronger balance sheets … will allow them to withstand the pressure on cash flows from lower oil prices without exposing shareholders to as much dilution – whether from procyclical disposals, organic cuts into their resource base and growth outlook or indeed shareholder distributions,' analysts at Bank of America said. READ SOURCE
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Business Standard
29-04-2025
- Business
- Business Standard
Spotify Q2 profit forecast misses estimates as payroll taxes weigh down
Spotify forecast second-quarter profit below market estimates on Tuesday due to employee salary-related taxes, taking the shine off its strong subscriber growth and sending shares of the Swedish music-streaming giant down 7 per cent before the bell. The company's profitability is closely watched by investors looking for signs that it can bolster margins after years of prioritizing user growth. While cost-cutting initiatives and price increases have aided profits in recent quarters, its latest earnings took a hit from taxes tied to higher salaries and benefits that jumped sharply due to an increase in the company's stock price. Spotify recorded 76 million euros ($86.47 million) in such charges in the first quarter, offsetting lower marketing costs and weighing on its operating profit of 509 million euros, which was below the average analyst estimate of 518.2 million euros, according to data compiled by LSEG. Its second-quarter profit forecast of 539 million euros includes 18 million euros in payroll taxes, and was below estimates of 557.5 million euros. Still, strong subscriber growth showed that efforts to draw users with more video content and AI-powered services, including playlists generated with a simple written prompt, were working. Premium subscribers rose 12 per cent to 268 million in the first quarter, beating Visible Alpha estimates of 265.3 million. The company had 678 million monthly active users, above estimates of 671.9 million. "The underlying data at the moment is very healthy. The short term may bring some noise, but we remain confident in the long-term story," CEO Daniel Ek said. Spotify's shares have risen about 34 per cent so far this year. It expects monthly active users to rise to 689 million in the second quarter, compared with LSEG-compiled estimates of 684.9 million. Premium subscribers are expected to increase to 273 million, above Visible Alpha estimates of 271.5 million. First-quarter revenue rose 15 per cent to 4.19 billion euros, slightly below LSEG-compiled estimates of 4.20 billion euros.
Time of India
29-04-2025
- Business
- Time of India
Spotify's high payroll taxes hurt profit, shares slide
Spotify forecast second-quarter profit below market estimates on Tuesday due to employee salary-related taxes, taking the shine off its strong subscriber growth and sending the shares of the Swedish music-streaming giant down 6% before the bell. The company's profitability is closely watched by investors looking for signs that it can bolster margins after years of prioritizing user growth. While cost-cutting initiatives and price increases have aided profit in the recent quarters, its latest earnings took a hit from taxes tied to higher salaries and benefits that jumped sharply due to a rise in the company's stock price. Spotify took 76 million euros ($86.47 million) in charges in the first quarter, offsetting lower marketing costs and weighing on its operating profit of 509 million euros, which was below estimates of 518.2 million euros, according to data compiled by LSEG. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cost Of Amusement Park Equipment From Mexico Might Surprise You - See Tips Amusement Park Equipment | search ads Click Here Undo Its second-quarter profit forecast of 539 million euros includes 18 million euros in payroll taxes, and was below estimates of 557.5 million euros. Still, strong subscriber growth showed that efforts to draw users with more video content and AI-powered services, including playlists generated with a simple written prompt, were working. Premium subscribers rose 12% to 268 million in the first quarter, beating Visible Alpha estimates of 265.3 million. The company had 678 million monthly active users, above estimates of 671.9 million. CEO Daniel Ek told Reuters the company was focused on "adding various higher price point tiers" for those who want all the benefits. He said a large share of new subscribers came from Latin America and the Asia-Pacific, regions he expects will power Spotify's long-term growth. It expects monthly active users to rise to 689 million in the second quarter, compared with LSEG-compiled estimates of 684.9 million. Premium subscribers are expected to increase to 273 million, above Visible Alpha estimates of 271.5 million. First-quarter revenue rose 15% to 4.19 billion euros, slightly below LSEG-compiled estimates of 4.20 billion euros. Spotify forecast second-quarter revenue of 4.3 billion euros, in line with estimates. Spotify's shares have risen about 34% so far this year.
CNA
29-04-2025
- Business
- CNA
Spotify's high payroll taxes hurt profit, shares slide
Spotify forecast second-quarter profit below market estimates on Tuesday due to employee salary-related taxes, taking the shine off its strong subscriber growth and sending the shares of the Swedish music-streaming giant down 6 per cent before the bell. The company's profitability is closely watched by investors looking for signs that it can bolster margins after years of prioritizing user growth. While cost-cutting initiatives and price increases have aided profit in the recent quarters, its latest earnings took a hit from taxes tied to higher salaries and benefits that jumped sharply due to a rise in the company's stock price. Spotify took 76 million euros ($86.47 million) in charges in the first quarter, offsetting lower marketing costs and weighing on its operating profit of 509 million euros, which was below estimates of 518.2 million euros, according to data compiled by LSEG. Its second-quarter profit forecast of 539 million euros includes 18 million euros in payroll taxes, and was below estimates of 557.5 million euros. Still, strong subscriber growth showed that efforts to draw users with more video content and AI-powered services, including playlists generated with a simple written prompt, were working. Premium subscribers rose 12 per cent to 268 million in the first quarter, beating Visible Alpha estimates of 265.3 million. The company had 678 million monthly active users, above estimates of 671.9 million. CEO Daniel Ek told Reuters the company was focused on "adding various higher price point tiers" for those who want all the benefits. He said a large share of new subscribers came from Latin America and the Asia-Pacific, regions he expects will power Spotify's long-term growth. It expects monthly active users to rise to 689 million in the second quarter, compared with LSEG-compiled estimates of 684.9 million. Premium subscribers are expected to increase to 273 million, above Visible Alpha estimates of 271.5 million. First-quarter revenue rose 15 per cent to 4.19 billion euros, slightly below LSEG-compiled estimates of 4.20 billion euros. Spotify forecast second-quarter revenue of 4.3 billion euros, in line with estimates. Spotify's shares have risen about 34 per cent so far this year.
Business Recorder
29-04-2025
- Business
- Business Recorder
Spotify profit takes hit from higher payroll taxes, shares drop
Spotify forecast second-quarter profit below market estimates on Tuesday due to employee salary-related taxes, taking the shine off its strong subscriber growth and sending shares of the Swedish music-streaming giant down 7% before the bell. The company's profitability is closely watched by investors looking for signs that it can bolster margins after years of prioritizing user growth. While cost-cutting initiatives and price increases have aided profits in recent quarters, its latest earnings took a hit from taxes tied to higher salaries and benefits that jumped sharply due to an increase in the company's stock price. Spotify recorded 76 million euros ($86.47 million) in such charges in the first quarter, offsetting lower marketing costs and weighing on its operating profit of 509 million euros, which was below the average analyst estimate of 518.2 million euros, according to data compiled by LSEG. Its second-quarter profit forecast of 539 million euros includes 18 million euros in payroll taxes, and was above estimates of 518.2 million euros. Still, strong subscriber growth showed that efforts to draw users with more video content and AI-powered services, including playlists generated with a simple written prompt, were working. Premium subscribers rose 12% to 268 million in the first quarter, beating Visible Alpha estimates of 265.3 million. The company had 678 million monthly active users, above estimates of 671.9 million. 'The underlying data at the moment is very healthy. The short term may bring some noise, but we remain confident in the long-term story,' CEO Daniel Ek said. Spotify's shares have risen about 34% so far this year. It expects monthly active users to rise to 689 million in the second quarter, compared with LSEG-compiled estimates of 684.9 million. Premium subscribers are expected to increase to 273 million, above Visible Alpha estimates of 271.5 million. First-quarter revenue rose 15% to 4.19 billion euros, slightly below LSEG-compiled estimates of 4.20 billion euros. Spotify forecast second-quarter revenue of 4.3 billion euros, in line with estimates.
