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CTV News
3 days ago
- Business
- CTV News
PayPal lifts 2025 profit forecast above estimates as turnaround picks up pace
The PayPal logo appears on a screen at the Nasdaq MarketSite, in New York's Times Square. (AP Photo/Richard Drew, File) PayPal raised its full-year profit forecast above Wall Street estimates on Tuesday, as the digital payments giant's push to revive growth in high-margin businesses such as Venmo and U.S. checkout begins to pay off. Under CEO Alex Chriss, PayPal has shifted its focus to profitability rather than chasing top-line growth. The company is trying to regain momentum in parts of its business that lost steam after the pandemic-era e-commerce boom faded and competition intensified. PayPal's Venmo, a platform that has become virtually synonymous with peer-to-peer payments in the U.S., posted revenue growth of 20 per cent for the second quarter. The unit's total payment volume growth accelerated to its highest rate in three years. On a per-share basis, the payments firm now expects an adjusted annual profit in the range of US$5.15 to $5.30 versus its prior expectations of $4.95 to $5.10. Analysts on average had expected $5.10, according to estimates compiled by LSEG. But PayPal's shares fell 1.2 per cent before the bell after the company guided to a current-quarter profit that was in line with Street views and roughly flat from a year earlier. PayPal expects third-quarter adjusted profit in the range of $1.18 to $1.22. At the mid-point of $1.20 per share, it matches Wall Street expectations. Transaction margin dollars - the profit PayPal makes on each transaction after covering direct costs - grew seven per cent to $3.8 billion in the quarter. The increase reflects an ongoing push to drive higher-margin volumes across the company's branded checkout products and streamline costs tied to unbranded processing. Adjusted operating margins expanded 132 basis points to 19.8 per cent. Margins have been a key source of investor concern in recent years, amid fears that Big Tech rivals such as Apple Pay and Google Pay are chipping away at PayPal's market share. While the company long held a first-mover advantage in digital payments, that edge has diminished, though PayPal has previously pushed back against concerns that its market share is under pressure. Spending holds up Meanwhile, U.S. consumers have continued to spend despite a mix of economic pressures, including persistent inflation and the threat of new trade policies, easing concerns about a potentially sharp pullback in transaction volumes. Analysts say some shoppers are also buying early to avoid expected price hikes from tariffs later this year. That resilience has helped PayPal and major U.S. lenders sidestep early worries that trade tensions could weigh on spending in the second quarter, even as lower-income households show signs of strain. Total payment volume - which tracks the total value of transactions handled by the platform - increased six per cent to $443.5 billion. Adjusted profit came in at $1.40 per share in the three months ended June 30. That compares with $1.19 per share a year earlier. PayPal's second-quarter net revenue climbed 5% to $8.3 billion. (Reporting by Manya Saini in Bengaluru; Editing by Maju Samuel)
CTV News
3 days ago
- Business
- CTV News
Spotify forecasts profit below estimates on higher taxes, shares sink
A trading post sports the Spotify logo on the floor of the New York Stock Exchange. (AP Photo/Richard Drew, File) Spotify forecast third-quarter profit below Street estimates on Tuesday as higher taxes related to employee salaries outweigh upbeat demand for its premium music-streaming plans. The company's shares, which have risen around 57 per cent so far this year, fell nearly nine per cent in premarket trading. Investors are closely monitoring 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 (US$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 eight per cent increase in operating expenses in the April-to-June quarter. Premium subscribers rose 12 per cent 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 per cent 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. (Reporting by Jaspreet Singh in Bengaluru; Editing by Pooja Desai)
Newsweek
3 days ago
- Politics
- Newsweek
Zohran Mamdani Reacts To NYC Active Shooting: 'Heartbroken'
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. New York City mayoral candidate Zohran Mamdani responded on Monday after a gunman opened fire in a midtown Manhattan office building that houses the National Football League (NFL) and some of the country's top financial firms. The Context The shooting took place in one of Manhattan's most prominent business districts, affecting a building that houses some of America's largest financial institutions including Blackstone, Deutsche Bank, and JP Morgan, as well as the consulate general of Ireland. The incident disrupted a critical area of New York's financial sector and triggered emergency alerts across the city. Democrat mayoral candidate Zohran Mamdani speaks during a rally at the Hotel & GamingTrades Council headquarters in New York, Wednesday, July 2, 2025. Democrat mayoral candidate Zohran Mamdani speaks during a rally at the Hotel & GamingTrades Council headquarters in New York, Wednesday, July 2, 2025. Richard Drew/AP What To Know The suspect, identified by multiple media outlets as 27-year-old Shane Tamura, shot and killed three people, including at least one off-duty New York City Police Department (NYPD) officer. "I'm heartbroken to learn of the horrific shooting in midtown and I am holding the victims, their families, and the NYPD officer in critical condition in my thoughts," Mamdani posted on X Monday evening. "Grateful for all of our first responders on the ground." Tamura was found dead on the 33rd floor of the building, ABC's local affiliate reported. The gunman died from a self-inflicted gunshot wound; sources told the Associated Press. What People Are Saying New York City Mayor Eric Adams posted on X: "I have been briefed on the limited information available during this active situation. We will provide more information as we have it." Former New York Governor and current mayoral candidate Andrew Cuomo posted on X: "Horrified by the shooting in Midtown. I'm grateful for the courage of our NYPD and first responders, and my prayers are with the victims and their families." Republican mayoral candidate Curtis Sliwa posted on X: "Disturbing reports out of Midtown Manhattan—multiple people reportedly shot, including an NYPD officer. Praying for everyone affected. Grateful to our first responders who run toward danger to keep us safe." This is a breaking news story. Updates to follow.
The Herald Scotland
3 days ago
- Politics
- The Herald Scotland
France calls on EU to pressure Israel to move on Palestinian two-state solution
'The European Commission, on behalf of the EU, has to express its expectations and show the means that we can incentivise the Israeli government to hear this appeal,' he said. Mr Barrot spoke on the first day of a high-level UN meeting on a two-state solution to the decades-old Israeli-Palestinian conflict, which is being co-chaired by France and Saudi Arabia. The unoccupied US delegation seat at the United Nations General Assembly on Monday (Richard Drew/AP) The conference, which was postponed from June and downgraded to the ministerial level, is taking place in New York as international condemnation of Israel's handling of the war in Gaza reaches a fever pitch. Both Israel and its closest ally, the United States, refused to participate in the meeting, which Mr Barrot said is being attended by representatives of 125 countries, including 50 ministers. The aim of the conference, Mr Barrot said, is 'to reverse the trend of what is happening in the region – mainly the erasure of the two-state solution, which has been for a long time the only solution that can bring peace and security in the region.' He urged the European Commission to call on Israel to lift a financial blockade on two billion euros he says the Israeli government owes the Palestinian Authority; stop settlement building in the West Bank, which threatens the territorial integrity of a future Palestinian state; and end the 'militarised' food delivery system in Gaza by the Israeli-backed Gaza Humanitarian Foundation, which has resulted in hundreds of killings. Israeli Prime Minister Benjamin Netanyahu has rejected the two-state solution on both nationalistic and security grounds. The US has echoed its sentiment and on Monday called the conference 'unproductive and ill-timed'. 'The United States will not participate in this insult but will continue to lead real-world efforts to end the fighting and deliver a permanent peace,' State Department spokesperson Tammy Bruce said in a statement. 'Our focus remains on serious diplomacy: not stage-managed conferences designed to manufacture the appearance of relevance.' Ahead of the meeting, French President Emmanuel Macron announced that France would recognise Palestine as a state at the annual gathering of world leaders at the UN General Assembly in September. The bold but mostly symbolic move is aimed at adding diplomatic pressure on Israel. France is now the biggest Western power and the only member of the Group of Seven major industrialised nations to recognise the state of Palestine, and the move could pave the way for other countries to do the same. More than 140 countries recognise a Palestinian state, including more than a dozen in Europe. At the conference opening, Palestinian Prime Minister Mohammed Mustafa called for all countries who have not yet recognised Palestine as a state to do so 'without delay'. 'The path to peace begins by recognising the state of Palestine and preserving it from destruction,' he said. The other issue being discussed at the conference is normalisation between Israel and the Arab states in the region. Prince Faisal bin Farhan, the Saudi foreign minister, stressed that normalisation of relations with Israel 'can only come through the establishment of a Palestinian state'. With global anger rising over desperately hungry people in Gaza starting to die from starvation, US President Donald Trump on Monday called for increasing aid to Palestinians, a rare glimpse of daylight between him and Mr Netanyahu, who has said there is no starvation. Both Mr Barrot and Mr Farhan said on Monday that the US is an essential actor in the region and that it was the president in January who secured the only ceasefire in the 21-month war. 'I am firmly in the belief that Trump's engagement can be a catalyst for an end to the immediate crisis in Gaza and potentially a resolution of the Palestinian-Israeli conflict in the long term,' Mr Farhan said.
Toronto Sun
7 days ago
- Business
- Toronto Sun
UnitedHealth says it is under a federal investigation and cooperating
Published Jul 25, 2025 • 2 minute read The logo for UnitedHealth Group appears above a trading post on the floor of the New York Stock Exchange, April 17, 2025. Photo by Richard Drew / AP UnitedHealth Group says it is cooperating with federal criminal and civil investigations involving its market-leading Medicare business. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The health-care giant said Thursday that it had contacted the Department of Justice after reviewing media reports about investigations into certain elements of its business. '(UnitedHealth) has a long record of responsible conduct and effective compliance,' the company said in a Securities and Exchange Commission filing. Earlier this year, The Wall Street Journal said federal officials had launched a civil fraud investigation into how the company records diagnoses that lead to extra payments for its Medicare Advantage, or MA, plans. Those are privately run versions of the government's Medicare coverage program mostly for people ages 65 and over. The company's UnitedHealthcare business covers more than 8 million people as the nation's largest provider of Medicare Advantage plans. The business has been under pressure in recent quarters due to rising care use and rate cuts. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. The Journal said in February, citing anonymous sources, that the probe focused on billing practices in recent months. The paper has since said that a federal criminal health-care-fraud unit was investigating how the company used doctors and nurses to gather diagnoses that bolster payments. UnitedHealth said in the filing Thursday that it 'has full confidence in its practices and is committed to working cooperatively with the Department throughout this process.' UnitedHealth Group Inc. runs one of the nation's largest health insurance and pharmacy benefits management businesses. It also operates a growing Optum business that provides care and technology support. UnitedHealth raked in more than $400 billion in revenue last year to come in third in the Fortune 500 list of biggest U.S. companies. Its share price topped $630 last fall to reach a new all-time high. This advertisement has not loaded yet, but your article continues below. But the stock has mostly shed value since December, when UnitedHealthcare CEO Brian Thompson was fatally shot in midtown Manhattan on his way to the company's annual investor meeting. A suspect, Luigi Mangione, has been charged in connection with the shooting. In April, shares plunged some more after the company cut its forecast due to a spike in health-care use. A month later, former CEO Andrew Witty resigned, and the company withdrew its forecast entirely, saying that medical costs from new Medicare Advantage members were higher than expected. The stock price was down more than 3%, or $10.73, to $281.78 Thursday afternoon. That represents a 55% drop from the all-time high it hit in November. Broader indexes were mixed. UnitedHealth will report its second-quarter results next Tuesday. Toronto & GTA Columnists Toronto & GTA Sunshine Girls News
