MILAN (Reuters) – Telecom Italia (TIM) TLIT.MI on Tuesday confirmed its financial guidance through 2022 after recovering demand in the home market in the third quarter helped Italy’s largest telephone group to limit falling revenue.
Revenue at Europe’s sixth largest telecom group fell to 3.9 billion euros ($ 4.6 billion) in the three months to September, down from 4.4 billion a year earlier but slightly above analyst consensus of 3.8 billion euros provided. by the company.
Domestic income, which accounts for nearly 80% of the total, fell 7% annually to 3.2 billion euros in the period, thanks in part to higher demand for ultra-broadband.
Organic income before interest, taxes, depreciation and amortization (EBITDA) after rental costs fell 8% to 1.6 billion euros, broadly in line with estimates.
Italy’s economy rebounded strongly in the third quarter after a slump driven by restrictions to combat COVID-19 transmission eased over the summer.
The rise of the pandemic has now prompted the Roman government to impose new restrictions, but TIM has expressed confidence that its commercial strategy will eventually allow it to stabilize core revenues and profits.
TIM said it had separated its data center business, which is in the process of further development under a strategic partnership with Google. GOOGL.O is a new company that is expected to start operating in the first quarter of next year.
In addition, the FiberCop fixed network unit, to which TIM transfers its long-distance network, will start operating at the end of March, the group said.
TIM added that it is continuing to discuss with the government and state lender CDP about plans to merge FiberCop with its state-backed rival, Open Fiber.
Reporting by Elvira Pollina; editing by Valentina Za and Mark Heinrich
(Reuters) – Lyft Inc. LYFT.O said on Tuesday that it is working on a new service to take part of the burgeoning food delivery market as it seeks to offset a 48% drop in quarterly revenue and a slow recovery from volatile demand.
Lyft shares were up 6% in after-hours trading.
Unlike its larger hail rival, Uber Technologies Inc. UBER.N, Lyft has no food delivery business to support amid the pandemic. This means that, while largely unable to keep up with the drop in travel, Lyft is also avoiding the extra costs of Uber in boosting its Eats business.
But Lyft President John Zimmer on Tuesday said the company was looking to tap into what it saw as an untapped market by offering delivery services for restaurants without launching a consumer-facing platform for food delivery.
“What we hear from restaurants is they are looking for a partner who won’t charge a 30% commission, but still offers delivery services,” Zimmer told Reuters in an interview, adding the service would offer new income opportunities for drivers.
While the details are still unclear, the offer aims to lower Uber’s GrubHub Inc. price tag. GRUB.N and other food delivery services charge a fee to the restaurant for each order – a method that has been challenged by some restaurants and lawmakers.
Lyft in October announced a partnership with GrubHub that will allow members of the Lyft loyalty program to send free restaurants from GrubHub restaurants.
Lyft’s third-quarter revenue fell to $ 499.7 million (£ 377 million), beating the average analyst’s expectations of $ 486.5 million, according to Refinitiv data.
Although Lyft’s stock has surged this week on hopes of a coronavirus vaccine, the stock as a whole has lost more than 15% this year and is now trading more than 50% below the company’s public debut price in 2019.
Lyft on Tuesday said ride demand continued to increase in the months from July to September, but active passengers remained down 44% annually.
In addition to its main business, Lyft offers bicycle, electric scooter and car rental in several cities, but did not specify the financial details of the unit. Lyft on Tuesday said performance was improving in these units.
Third-quarter active riders totaled 12.5 million – a significant increase from 8.69 million in the second quarter but far short of the 22.3 million riders who used Lyft during the third quarter of last year.
Lyft reiterated its goal of achieving profitability based on income before interest, taxes, depreciation and amortization by the end of 2021. The company has implemented drastic cost cuts this year, including extensive layoffs.
Lyft reported a third-quarter adjusted EBITDA loss of $ 239.7 million, less than the $ 254.1 million analysts estimated loss.
The company said its quarterly adjusted EBITDA loss was $ 25 million less than Lyft’s recent estimate, reflecting progress in reducing costs.
Unlike Uber, Lyft only operates in a few cities in Canada and the United States, where Uber last week said demand for airplane travel was recovering at the slowest compared to other regions around the world.
Uber last week reported $ 3.13 billion in third-quarter revenue, nearly half of which came from its food delivery unit. Uber said it could be profitable on an adjusted EBITDA base by the end of 2021 even though travel continues to remain 10% to 20% below pre-pandemic levels.
Uber and Lyft recently scored a significant win in their California home market, where voters certified company-sponsored ballots reinforcing app-based food delivery status and online taxi drivers as independent contractors, not employees eligible for unemployment pay , health insurance and other expensive benefits.
Show workers in California will now receive limited benefits, including a minimum wage rate and accident insurance and the company hopes to turn California’s decision into a model for the nation.
Lyft’s president, Zimmer, on Tuesday said the company was talking to lawmakers in other states and at the federal level and added he was optimistic that the model would be implemented more broadly.
“Politicians in other states are surprised how successful this move is in very progressive circumstances,” said Zimmer, referring to California.
Reporting by Tina Bellon in New York and Akanksha Rana in Bangaluru; Edited by Peter Henderson and Matthew Lewis
FILE PHOTO: The logo of Brazilian airline Embraer is seen during the Latin American Business Aviation Conference and Exhibition (LABACE) at Congonhas Airport in Sao Paulo, Brazil, August 14, 2018. REUTERS / Paulo Whitaker (Reuters) – Embraer SA EMBR3 of Brazil The .SA braces for a “very difficult” 2021 as new waves of coronavirus in the United States and Europe appear to delay a potential resumption of travel, said Tuesday the general manager Francisco Gomes Neto. The world’s No.3 aircraft maker lost $ 121 million between June and September, the company said, as the first wave of the pandemic dampened travel, hitting demand for commercial jets and private jets. Gomes Neto told analysts he didn’t expect sales in 2021 to be better than 2021 in 2020, with the company particularly burdened by the lag in sales of commercial aircraft. So far this year, Embraer has already lost $ 728 million, and the company doesn’t expect growth to pick up again in 2022. Shares have fallen 6% in Brazil on news and developments. negative outlook, even as the markets were generally up. it had already delivered more planes in October than in the entire third quarter, a promising sign that could darken the line if the resurgent pandemic is not tamed. Commercial aircraft revenues have been hit the hardest, falling to $ 177 million in the quarter, up from $ 408. a year ago, as the pandemic ravaged commercial travel, but the business jet division, which some analysts say would be a bright spot as the ultra rich would spend a lot to travel in isolation, also fell significantly . Business jet revenue fell to $ 212 million from $ 363 million a year ago, but its defense division managed to boost revenue through increased deliveries of military aircraft . Still, Embraer’s defense division remains a smaller business segment than one that makes civilian aircraft, and the company said it spent $ 567 million on cash in the quarter, which was offset by $ 750 million. dollars in new debts incurred during the same period.Report by Marcelo Rochabrun; Edited by Louise Heavens and David Evans.
FRANKFURT (Reuters) – Uniper utility UN01.DE on Tuesday said the emerging market for hydrogen in Germany, funded by the government with billions of euros, needed to secure demand from industry, transportation and also from households for heating.
If the industry joins the market, prices could fall and Uniper could use its gas infrastructure assets and trading expertise for hydrogen, Chief Executive Andreas Schierenbeck told reporters during the revenue call.
“That’s an area we’re good at,” he said, adding that technology is moving forward rapidly, and scalable projects could be built in a few years.
The government in the summer allocated 7 billion euros ($ 8.25 billion) to build green hydrogen in Germany, plus another 2 billion euros for partnerships with other countries.
The aim is to end Germany’s dependence on coal and nuclear power and to harness the production of renewable power for hydrogen to help ultimately reduce the carbonization of energy used in industry.
The so-called green hydrogen can be used as a substitute for gasoline in the transportation industry and can replace gas or heating oil for home heating.
Schierenbeck quoted analysts estimating that Germany’s target of 5 gigawatts (GW) of electrolysis capacity by 2030 – needed to convert green power to hydrogen – could produce 15 terawatt hours (TWh) of hydrogen a year while Germany would need 100 TWh at that stage.
“There will be a huge import gap,” he said.
Schierenbeck said Uniper’s commerce department could handle commercial hydrogen flows and that plans recently put in place for a liquefied natural gas (LNG) terminal at Wilhelmshaven could potentially be adapted for the emerging hydrogen economy.
Uniper said last Friday there was not enough interest to deliver LNG to the Wilhelmshaven site.
Uniper also said preliminary results from ongoing discussions with the majority owner of Fortum FORTUM.HE The two companies’ strategic alignment will be presented during the Finnish group capital markets day on 3 December.
Reporting by Vera Eckert, editing by Christoph Steitz and Jane Merriman
SAO PAULO, November 9 (Reuters) – Brazilian food processor BRF SA reported a net profit of 218.7 million reais ($ 40.61 million) for the third quarter, slightly above analyst expectations, according to a securities filing on Monday.
Profit before interest, taxes, depreciation and amortization, a measure of operating income known as EBITDA, totaled 1.13 billion reais in the quarter, the company said. ($ 1 = 5,3858 reais) (Reported by Ana Mano, Editing by Chris Reese)