Latest news with #Ziply
Time of India
08-05-2025
- Business
- Time of India
Shopify beats earnings forecast but warns of slower growth amid Trump tariffs and trade policy shifts
Shopify outpaces Q1 earnings but tariff uncertainty clouds forecast Live Events Trump's tariffs cast a shadow over e-commerce outlook Shopify bets on resilient consumer base and local commerce tools (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Canadian e-commerce giant Shopify reported better-than-expected earnings in its first-quarter results, but issued a cautious growth outlook for Q2, triggering a 5 per cent drop in its share price during early trading on Thursday, May 8. The company's results and guidance come as US-China trade tensions resurface under renewed Trump-era tariffs, shaking investor confidence across the e-commerce how Shopify performed in Q1:Revenue: $2.36 billion vs. $2.33 billion expectedAdjusted EPS: 39 cents vs. 26 cents expectedGross Merchandise Volume (GMV): $74.75 billion, just shy of $74.8 billion estimatesAlso read: Uber reports strong Q1 despite revenue miss, forecasts resilient demand with robust gross bookings outlook While Shopify surpassed revenue and earnings forecasts, it predicted gross profit to grow at a high-teens percentage rate in Q2 — slightly below analyst expectations of 20.1 per cent. The company also projected mid-twenties revenue growth for the next quarter, compared to Wall Street's 22 per cent which powers online storefronts and offers services like advertising and payment processing tools, faces indirect exposure to geopolitical policies. President Donald Trump's sweeping tariffs — now totaling 145 per cent on Chinese imports — have closed a trade loophole that previously exempted sub-$800 shipments from China from US read: Google stock falls as Apple signals interest in AI search rivals like Perplexity Despite this, Shopify's leadership appears unshaken. President Harley Finkelstein told investors the de minimis exemption closure would not have a 'meaningful impact' on business, noting that only around 1 per cent of the company's GMV involves imports previously covered by the exemption.'We haven't seen broad-based price increases among sellers,' Finkelstein said. 'We believe this helps insulate our merchants from some of the potential swings in pricing or other market factors, as higher-income consumers tend to be less price sensitive.'Finkelstein emphasized that over 50 per cent of Shopify's US buyers have household incomes above $100,000, giving the company some cushion against cost-related response to rising e-commerce tariffs and policy shifts, Shopify has been rolling out features to strengthen its merchant ecosystem. Earlier this year, the company introduced a 'Buy Local' tool enabling customers to filter and shop from businesses within their home country. This strategic move could help Shopify reduce reliance on global supply chains and mitigate tariff read: BCE slashes dividend to fund $5-billion Ziply deal and cut debt amid economic uncertainty While Shopify's subscription solutions revenue came in at $620 million — slightly under the $621.5 million projected — the broader 27 per cent revenue growth shows the platform's continued appeal amid market e-commerce companies are also reacting to the trade shakeup. Amazon recently cited 'tariff and trade policies' as a concern in its softer Q2 guidance, while Etsy said it remains 'nimble' in response to the uncertainty. Etsy's CFO Lanny Baker noted that their direct tariff exposure is low, echoing similar sentiments to Shopify's the Canada-US tech corridor adapts to unpredictable global trade policies, Shopify is leaning on its core strengths: scalable software, affluent customers, and a flexible merchant network. Whether that will be enough to power continued momentum remains to be seen.
Time of India
08-05-2025
- Business
- Time of India
BCE slashes dividend to fund $5-billion Ziply deal and cut debt amid economic uncertainty
BCE prioritizes US fiber growth over historic dividend stability BCE Inc., one of Canada's largest telecom providers, has taken a dramatic step to fund its $5-billion acquisition of Ziply Fibre by cutting its annual dividend from $3.99 to $1.75 per share—a reduction of more than 56 per cent. This move, though long anticipated, marks a significant break from BCE's tradition of stable dividend growth, which had made its shares popular with income-seeking investors. #Operation Sindoor Live Updates| From Sindoor to showdown? Track Indo-Pak conflict as it unfolds India hits Lahore's Air Defence Radars in proportionate response Pakistan tried to hit military targets in these 15 Indian cities, New Delhi thwarts strikes As of Thursday, May 8 BCE's quarterly payout will drop to $0.4375 per share, ending years of consistent increases and bringing its dividend yield back to a sustainable range. Prior to the cut, the stock was yielding around 13 per cent, widely viewed as unsustainable, especially given BCE's more than $30-billion in long-term debt. Also read: Canada's PSP in talks for Maple InvIT stake CEO Mirko Bibic acknowledged the difficult choice in a statement: Live Events 'There are a number of significant changes in our economic and operating environments that have occurred since the Fall of 2024 that we need to address. We have made the appropriate decision to adjust our annualized dividend to $1.75 per common share to strengthen our balance sheet while maintaining flexibility in the context of economic uncertainty.' This change follows a period of intense pricing pressure in Canadian telecom, mounting regulatory uncertainty, and global economic instability. PSP partnership to expand Ziply network reduces BCE's capital burden BCE is taking on the U.S.-based Ziply Fibre to expand its footprint in the competitive North American telecom market. The company also unveiled a strategic partnership with PSP Investments, an Ottawa-based pension fund with $265-billion in assets under management. Under the terms of the agreement, PSP will invest up to US$1.5-billion to expand Ziply's fiber network from 1.3 million to up to 8 million potential customers. BCE will retain 100 per cent ownership of Ziply's existing business and customer base, while PSP will own 51 per cent of the new customer expansion. This setup will allow BCE to offload future capital expenditures associated with the US fiber buildout. 'Adding PSP as a majority owner in Ziply's expanded platform dramatically lowers BCE's future capital spending,' the company stated, addressing one of the key concerns among BCE shareholders. PSP first invested in Ziply in 2019, later selling its stake to BCE in November 2024 before re-engaging through this co-investment deal. Dividend cut signals strategic reorientation for BCE While the dividend cut may unsettle dividend-focused investors, analysts and market watchers have long expected the move. BCE had been paying out more in dividends than it generated in free cash flow, raising sustainability questions amid a backdrop of rising interest rates and capital-intensive investments. Mirko Bibic reinforced the company's need to refocus: 'With the current backdrop of macroeconomic and geopolitical instability, we need to stay more focused than ever on our core business and on winning customers over to Bell.' The strategic pivot toward US fiber infrastructure via Ziply, combined with PSP's capital injection, is aimed at helping BCE deleverage its balance sheet while ensuring future growth opportunities in a saturated telecom market. As BCE balances between dividend discipline and network expansion, its future performance will hinge on how successfully it can integrate Ziply and win market share in the competitive US fiber broadband landscape.
