What You Need to Know Ahead of Grab Q2 Earnings?

As the company's core business, deliveries accounted for over 50% of the revenue in Q1, with mobility close to 40%. The profit growth and contributions of these segments have attracted widespread market attention. According to Moomoo, market expectations for the Q2 2024 financial performance of the company are as follows:

● The company is projected to achieve a revenue of $676.16 million, representing a year-over-year increase of 19.25%.

● Consensus EPS is expected to be-$0.01, a 68.23% decrease in losses.

● The average price target for Grab is $4.67, suggesting a potential increase of 43.25%.

The tourism industry in Southeast Asia has seen an uptick this year, thanks to a series of convenient measures aimed at stimulating the market. These measures, including expanding visa-free travel, streamlining visa procedures, and enhancing the quality of tourism services, are catalyzing the sector's development and becoming a pivotal element in the region's economic recovery.

Robert Sebastian, an analyst at Bahana Sekuritas, notes that Grab currently commands a ride-hailing market share in Southeast Asia that is 3.8 times larger than its nearest competitor. Despite Grab shelving plans to acquire Singapore taxi operator Trans-Cab, the company, along with its Indonesian competitor GoTo, has rekindled talks this year about merging their core businesses. As they vie for dominance in a market teeming with hundreds of millions of consumers, a successful negotiation could potentially ease competitive pressures and fortify Grab's market position.

In a strategic move to consolidate its market position, Grab made a significant acquisition in July, bringing the restaurant reservation platform Chope under its wing. The details of the transaction remain undisclosed, but the acquisition is set to enhance Grab's operations across Singapore, Indonesia, and Thailand. With Chope's network of 10,000 merchants joining forces with GrabFood's extensive ecosystem, which includes over 200,000 service providers, there is a clear path to amplifying outdoor dining advertising sales.

Furthermore, Grab's expansion in the digital banking sector within Malaysia has led to an increase in loan volumes, providing a boost to its fintech sales. This is anticipated to help Grab normalize the sales in its food delivery arm, while also driving revenue growth across the group.