Paytm Net Loss Reduces Sequentially by 11%, While Revenue Surges

Paytm, India’s leading digital payments and financial services company, continues to strengthen all its businesses with strong revenue growth. The company has reported a 76% year-on-year (YoY) growth in revenue to Rs 1,914 crore and sharp improvement of 61% YoY in EBITDA before ESOP cost by Rs 259 crore. Also, it has registered an 11% QoQ reduction in its net loss for Q2FY23.

The company identified its revenue drivers to be growth in loan disbursements, continued growth in the merchant subscription base leading to increase in subscription and MDR revenues, and increase in payment gateway revenue driven by higher GMV in online business, primarily ecommerce. This was achieved without any UPI incentive during the quarter. On a QoQ basis, revenues grew 14%.

The payments business witnessed revenue growth of 56% YoY and 9% QoQ in the quarter on account of continued platform expansion, with average monthly transacting users (MTU) growing 39% YoY to 79.7 million, while merchant base has increased to 29.5 million. The company further strengthened its leadership in offline payments with 1.1 million devices deployed in the quarter, taking the total to 4.8 million. With this, Gross Merchandise Value (GMV) stood at Rs 3.2 lakh crore. Revenue from payment services to consumers stood at Rs 549 crore, an increase of 55% YoY, while payment services to merchants was Rs 624 crore, marking an increase of 56% YoY.

Driven by improved monetization and continued focus on reduction in payment processing charges, Paytm’s net payment margin (calculated as payments revenues plus other operating revenues, less payment processing cost) stood at Rs 443 Cr, increasing 15% QoQ and was up 428% YoY.

The company’s fast-growing lending vertical saw revenue from the financial services business was Rs 349 crore, up 293% YoY and 29% QoQ. It now accounts for 18% of total revenue, compared to 8% in Q2FY22, driven by sourcing and collection revenues. In Q2FY23, Paytm disbursed 9.2 million loans, up 224% YoY and 8% QoQ, amounting to Rs 7,313 crore, marking an increase of 482% YoY and 32% QoQ. With a long growth runway ahead, the company saw a high demand in the loan distribution business for all its products – Paytm Postpaid, Personal Loans, Merchant loans.

The company also reported 55% YoY and 14% QoQ growth in Commerce and Cloud revenues to Rs 377 crore, with Commerce revenue increasing 49% YoY due to higher ticketing sales, while Cloud revenues were up 58% YoY

Despite US Ban, Huawei registers 23% Increase in Revenue, Claims Chairman

Chinese telecom giant Huawei Technologies said on Tuesday that its revenue has been increased by 23.2 per cent year-on-year to USD 58.3 billion in the first half of the year, even as its top official admitted US sanctions would bring challenges in the coming months.

The US has banned Huawei, the world's leader in telecom equipment and the number two smartphone producer, over concerns of security and Washington has been pressuring other countries to restrict the operations of the Chinese telecom firm.

The Shenzhen-based company generated revenue of 401.3 billion yuan (USD 58.3 billion) in the first six months of the year, up from 325.7 billion yuan during the same period in 2018 due to a jump in smartphone shipments and robust demand for its 5G equipment, the company said.

The net profit margin was 8.7 per cent in the first six months, Huawei said in a press release here. Huawei's key business segments – consumer, carrier and enterprise – produced revenue of 220.8 billion yuan, 146.5 billion yuan and 31.6 billion yuan respectively, it said.

According to Huawei's Chairman Liang Hua, operations are smooth and the organization is as sound as ever, despite the US ban. The US ban on Huawei products prompted Google to withdraw its services to Huawei's future phones which could curtail access to its Android operating system. Huawei managed to boost sales despite the effects of being included on the US Commerce Department's Entity List, which prevents the company from buying American-made technology.

"There has been some impact on our business (from the US ban) such as intelligent computing and on our server and consumer business in non-China markets … but generally in the first half the impact has not been large," Liang was quoted as saying by the Hong Kong-based South China Morning Post.

Liang said operations are smooth and the organisation is as sound as ever. He, however, admitted that with the US actions "objectively we are facing many difficulties."

With effective management and an excellent performance across all financial indicators, Huawei's business has remained robust in the first half of 2019, the press release said.

In Huawei's carrier business, H1 sales revenue reached CNY 146.5 billion, with steady growth in production and shipment of equipment for wireless networks, optical transmission, data communications, IT, and related product domains.

To date, Huawei has secured 50 commercial 5G contracts and has shipped more than 150,000 base stations to markets around the world, he said.

Last month, China gave green light to its major state-owned companies to start rolling out 5G services in its efforts to move ahead in the global race for setting up the super-fast telecommunications system. Beijing city has built 4,300 5G base stations in the city's urban core areas and iconic buildings to implement the superfast technology as the Chinese government started issuing 5G licenses to telecom firms.

Huawei released its first 5G smartphone, the Huawei Mate 20 X, on July 26. The 5G is the next generation cellular technology with download speeds stated to be 10 to 100 times faster than the current 4G LTE networks. The 5G networking standard is seen as a critical because it can support the next generation of mobile devices in addition to new applications like driverless cars. PTI KJV

Google Profit Dips to $2.8 Billion, Revenue Grows To $16.5 Billion

Google's zest for innovation and newer markets has costed it a dip in the third quarter earnings of this financial year. The hiring of three thousand more employees has also added to the dip. The results which came in on Thursday saw the search giant's stock drop by 2.4 percent, or $12.92, to 524 dollars in extended trading. Google’s shares had already plunged by 4 percent this year.

The search engine's digital ad network which is powered by its dominant search engine has constantly been delivering profits that have been keeping the interests of its investors high over the years.

According to Larry Page, Google's CEO, the company needs to sacrifice some short term gains and goals so that it can invest in projects and other researches that could take a long time to take off or make money. The CEO described these small dips and risky initiatives as “moon shots”. Page further defends these steps by pointing out the fact that company might not have ever been able to develop its Chrome Web browser and Android mobile software if it hadn’t gone out on a limb.

The search giant is currently working on a string of innovations like Internet beaming balloons, driverless cars, Internet connected eyewear and a fleet of drones.

As far as investors are concerned, exploring new technologies always prove to be expensive for them. This is one of the reasons why the San-Francisco based search giant's operating expenses increased by a whopping 30 percent from a year earlier to 5 billion dollars in the third quarter, this is after subtracting the employee stock compensation costs. These rising expenses brought Google’s third quarter revenue to $16.5 billion.

A big percentage of the rising expenses were spent on hiring more employees. Some 3,000 employees were hired in the third quarter which was roughly double the number of employees hired last year at the same time.

In what could be assumed as a positive sign, the search giant's average ad prices in the third quarter dipped by a mere two percent from last year. This is the smallest dip in the prices paid to the search giant for the advertisements which appear alongside search results and other content on the web.

Google Profit Dips to $2.8 Billion, Revenue Grows To $16.5 Billion

Google's zest for innovation and newer markets has costed it a dip in the third quarter earnings of this financial year. The hiring of three thousand more employees has also added to the dip. The results which came in on Thursday saw the search giant's stock drop by 2.4 percent, or $12.92, to 524 dollars in extended trading. Google’s shares had already plunged by 4 percent this year.

The search engine's digital ad network which is powered by its dominant search engine has constantly been delivering profits that have been keeping the interests of its investors high over the years.

According to Larry Page, Google's CEO, the company needs to sacrifice some short term gains and goals so that it can invest in projects and other researches that could take a long time to take off or make money. The CEO described these small dips and risky initiatives as “moon shots”. Page further defends these steps by pointing out the fact that company might not have ever been able to develop its Chrome Web browser and Android mobile software if it hadn’t gone out on a limb.

The search giant is currently working on a string of innovations like Internet beaming balloons, driverless cars, Internet connected eyewear and a fleet of drones.

As far as investors are concerned, exploring new technologies always prove to be expensive for them. This is one of the reasons why the San-Francisco based search giant's operating expenses increased by a whopping 30 percent from a year earlier to 5 billion dollars in the third quarter, this is after subtracting the employee stock compensation costs. These rising expenses brought Google’s third quarter revenue to $16.5 billion.

A big percentage of the rising expenses were spent on hiring more employees. Some 3,000 employees were hired in the third quarter which was roughly double the number of employees hired last year at the same time.

In what could be assumed as a positive sign, the search giant's average ad prices in the third quarter dipped by a mere two percent from last year. This is the smallest dip in the prices paid to the search giant for the advertisements which appear alongside search results and other content on the web.

Webkul earned US$1 million in revenue without any funding

Webkul is an Indian based startup which was launched in 2010. It was founded by Vinay Yadav and Vipin Sahu, two young focused enthusiasts who shared a great passion for development of apps. When they started in 2010, they just had an idea and very little budget but they didn’t let that come in their way. Today, despite the initial budget crunch, Webkul has been able to generate over US$1 million in revenue and successfully caters to about 25,000 customers all around the world.

Webkul allows the various ecommerce sites to quickly scale the ladder and include various new features. It offers development services and website design from internet application to simple web pages. They also provide software solutions. Based in Noida, Webkul software private limited is a NASSCOM and ISO certified development firm. They credit themselves for enriching e-commerce every day. They have a goal of delivering cutting edge quality at significantly lower cost.

In 2010, when the company was formally started, they just had a budget of US$ 650. Regulating their finances was one of the initial challenges which the firm faced. But with their spirits high, they started with limited resources and took no financial help from anybody whatsoever. Fresh out of college, the capability based startup founders decided that it was a terrific time to venture into entrepreneurship. According to them, they had everything to gain and nothing to lose. Webkul has been able to provide them a platform to enhance and polish their development skills. It also provides them with a fun and free environment while they are experimenting on the products.

At Webkul, the belief is that while running a business, profit is like oxygen. Like if there is no oxygen, a person would die. Similarly, a firm would also die soon and perish if it doesn’t earn profits. The company has never depended on investors. It has been able to swiftly generate profits from the sales of its products and the customization of its modules.

2013 proved to be a golden year for the company. The firm tripled its products and revenue. It made a big jump from US$220,000 in 2012 to a mammoth US$1 million in 2013. The company dedicates its success to its value for customer and continuous urge to learn.

Webkul earned US$1 million in revenue without any funding

Webkul is an Indian based startup which was launched in 2010. It was founded by Vinay Yadav and Vipin Sahu, two young focused enthusiasts who shared a great passion for development of apps. When they started in 2010, they just had an idea and very little budget but they didn’t let that come in their way. Today, despite the initial budget crunch, Webkul has been able to generate over US$1 million in revenue and successfully caters to about 25,000 customers all around the world.

Webkul allows the various ecommerce sites to quickly scale the ladder and include various new features. It offers development services and website design from internet application to simple web pages. They also provide software solutions. Based in Noida, Webkul software private limited is a NASSCOM and ISO certified development firm. They credit themselves for enriching e-commerce every day. They have a goal of delivering cutting edge quality at significantly lower cost.

In 2010, when the company was formally started, they just had a budget of US$ 650. Regulating their finances was one of the initial challenges which the firm faced. But with their spirits high, they started with limited resources and took no financial help from anybody whatsoever. Fresh out of college, the capability based startup founders decided that it was a terrific time to venture into entrepreneurship. According to them, they had everything to gain and nothing to lose. Webkul has been able to provide them a platform to enhance and polish their development skills. It also provides them with a fun and free environment while they are experimenting on the products.

At Webkul, the belief is that while running a business, profit is like oxygen. Like if there is no oxygen, a person would die. Similarly, a firm would also die soon and perish if it doesn’t earn profits. The company has never depended on investors. It has been able to swiftly generate profits from the sales of its products and the customization of its modules.

2013 proved to be a golden year for the company. The firm tripled its products and revenue. It made a big jump from US$220,000 in 2012 to a mammoth US$1 million in 2013. The company dedicates its success to its value for customer and continuous urge to learn.