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Grab's net loss widens to US$988 million for 3Q21

Jovi Ho
Jovi Ho11/11/2021 08:06 PM GMT+08  • 2 min read
Grab's net loss widens to US$988 million for 3Q21
Grab’s planned SPAC continues to progress and is expected to close in the fourth quarter of 2021, says the company.
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Grab’s net loss widened to US$988 million for 3QFY2021 ended September, 59% deeper y-o-y.

The y-o-y increase in losses during the third quarter was driven primarily by non-cash expenses, says Grab in a press release on Nov 11.

Grab’s 3QFY2021 net loss includes US$748 million in non-cash items. “This primarily consists of interest accrued on Grab’s convertible redeemable preference shares, stock based compensation and fair value changes on investments," the company states.

See: Grab Financial Group launches e-commerce store builder to bring small businesses online

Grab, which is poised to complete a SPAC merger with Altimeter Growth Corp by end of the year, expects a significant proportion of such non-cash expenses is expected to cease after the business combination.

Grab had reported a net loss of US$815 million in the previous quarter, 2QFY2021.

See also: Second Chance set to report higher 1HFY2023 net profit

Total revenue for 3QFY2021 came in at US$157 million, falling 9% y-o-y, “as a result of the expected decline in mobility due to the severe lockdowns in Vietnam”, says the company.

Grab’s reported revenue is net of consumer, merchant and driver-partner incentives.

Meanwhile, gross merchandise value (GMV) reached a new quarterly record of US$4.0 billion, up 32% y-o-y.

See also: SIA group wide load factor for Feb was 86.6%, down 0.3% over Jan

Adjusted EBITDA for the quarter was a loss of US$212 million, down US$85 million y-o-y and up by US$2 million q-o-q.

For more stories about where the money flows, click here for our Capital section

Monthly Transacting Users (MTUs) declined by 8% y-o-y as a result of total lockdowns across Vietnam between July and September, which saw both food delivery and ride-hailing services suspended. Average spend per user, defined as GMV per MTU, increased by 43% y-o-y.

As of Sept 30, Grab had cash liquidity of US$5.2 billion, an increase of US$1.5 billion from US$3.7 billion as of Dec 31, 2020.

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