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Facebook Quarterly Profit Soars, Lifted by Mobile

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  • Facebook Quarterly Profit Soars, Lifted by Mobile Ads

Facebook on Wednesday delivered another blockbuster earnings performance, showing solid growth in mobile ad revenues as the social network expands into new services.

While Facebook topped Wall Street expectations in the quarter, shares dove more than eight percent to $116.54 after an earnings call during which executives warned that revenue growth should be more tempered next year and that the company planned to invest heavily in engineers and data-centers for long-term goals.

“People were expecting them to hit it out of the park, and it is hard to sustain that,” Silicon Valley analyst Rob Enderle of Enderle Group said of the market reaction to what appeared to be a stellar earnings report.
Profit leapt 166 percent to $2.4 billion on revenue that surged to $7 billion from $4.5 billion during the same period a year earlier, third quarter results showed.

“We had another good quarter,” Facebook co-founder and chief executive Mark Zuckerberg said in the earnings release.

“We’re making progress putting video first across our apps and executing our 10 year technology roadmap.”

Eye on the future

Zuckerberg has laid out a long-term vision for Facebook that includes virtual reality, artificial intelligence, and even providing internet service to remote areas using self-flying drones.

Facebook’s third quarter earnings results “displayed strong top-line momentum and improved profitability,” Baird Equity Research said in a note to investors.

The social network had an average of 1.79 billion monthly users as of the end of September in a 16 percent jump from a year earlier, according to the earnings report.

The number of people accessing Facebook from mobile devices monthly climbed 20 percent to 1.66 million.

Revenue from mobile advertising accounted for about 84 percent of the ad money taken in by Facebook during the quarter, up from 78 percent during the same three-month period last year, according to the social network.

Facebook has become a powerhouse in online advertising, getting traction from new formats on mobile and its ability to glean data to deliver personalized or targeted marketing messages.

The research firm eMarketer estimates that worldwide ad revenues at Facebook will reach nearly $26 billion this year, up from $17.08 billion in 2015, and hit more than $33 billion in 2017.

It is also starting to bring in ad revenue from its Instagram photo- and video-sharing application.

Facebook recently took direct aim at video-loving adolescents, and Snapchat, with the release of a Lifestage iPhone app that allows teens to watch clips about the lives of their classmates.

Focus on video

Video sharing has been among nearer-term priorities for the Silicon Valley-based company, which has seen sharing of that kind of content climb.

“People are creating and sharing more video,” Zuckerberg said during an earnings call.

“It is pretty clear video is only going to become more important.”

The number of people broadcasting video in real time using a Facebook Live feature launched earlier this year has already quadrupled, according to Zuckerberg, who did not disclose numbers.

He said Facebook is experimenting in some markets with new ways to use smartphone cameras to directly share video at the social network or in its messaging applications such as WhatsApp.

Facebook is also testing an online Home venue designed as a place specifically for video.

Video is also becoming a large share of the content on the Facebook News Feed, according to Zuckerberg.

Facebook is among internet giants which have made artificial intelligences a priority, seeing it as a way to make features better understand and cater to needs of users.

The social network already uses artificial intelligence to find terrorist propaganda and identify hoax stories in Facebook news feed, Zuckerberg said.

“Facebook seems to be focused like a laser on improving their overall operations and making sure their revenue never dies,” analyst Enderle said.

“That all bodes well for Facebook longterm; they are not just sitting back.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Union Bank Unveils Multi-Asset Trading Platform M36

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Union Bank Unveils Digital Investing Platform, M36

A new digital platform designed to deliver a wide range of investment products directly to individuals and other investors, M36, has launched in Nigeria.

Through an innovative, user-friendly app, M36 offers investment options not typically available on self-service digital platforms including foreign currency transactions, commercial papers, local and foreign-denominated bonds, treasury bills and other fixed-income products.

M36 also offers bespoke solutions for both new and experienced investors as well as a 24-hour lifestyle concierge service to meet the needs of discerning customers.

In a rapidly evolving environment with changing consumer behaviour fueled by technology and growing access to information, M36 is looking to expand opportunities for investors at all levels, while also simplifying the process of investing.

M36 was developed by Union Bank as part of its strategic focus on delivering superior customer solutions leveraging technology and innovation. The bank partnered with several asset management companies to deliver a broad range of investment products on the M36 platform.

Speaking about this, Mr. Chuka Emerole, Head, Treasury at Union Bank said, “M36 eliminates the traditional barriers to investing and offers investors direct access to financial instruments that would usually require the service of an investment or relationship manager.

“We’ve designed M36 to ensure simplicity in the onboarding and investing process while also empowering the customer to make sound investment choices based on their financial objectives.

“We worked with key partners to deliver both the experience and products on M36 and are confident that we have launched a superior product in today’s marketplace”.

With the 24-hour concierge service, M36 users can access round-the-clock support from investment advisors as they actively manage their portfolios.

The bank said the M36 was a timely financial product meant to keep abreast with the rapidly evolving environment and changing consumer behavior that is fueled by technology and growing access to information.

The M36 is also part of the UBN’s strategic focus on delivering superior customer solutions by leveraging technology and innovation. The bank partnered with several asset management companies to deliver a broad range of investment products on the M36 platform.

M36 also offers loans, personal travel allowance, will and trust services and many more essential products under its Life Essentials menu.

 

M36 is available for download on the App Store and the Google Play Store.

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Rimac Automobili Welcomes Further 70m EUR Investment From Porsche

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Porsche has further increased its investment into Rimac Automobili, expanding its stake in the business to 24% with an additional 70M EUR. Porsche bought a 10% stake of the business in 2018, before increasing it to 15.5% in 2019. The latest investment reinforces Rimac Automobili’s status as a leader in high-performance electrified vehicle technologies.

Since Porsche’s first investment in 2018, the team at Rimac Automobil has doubled to nearly 1,000 people, and the Croatian technology company has continued to produce some of the world’s most advanced electrified powertrains, batteries, infotainment and other components related to electrification. Rimac Automobili now works with many major car manufacturers, including Hyundai, Kia, Porsche, Aston Martin, Automobili Pininfarina, Koenigsegg and many more.

Mate Rimac, founder and CEO of Rimac Automobili, said: “Porsche has been a big supporter of our company since 2018, and it has always been a privilege to have one of the world’s most iconic sports car brands be a part of Rimac. We’re proud to work together on new exciting and electrified products and of the fact that Porsche’s trust in Rimac resulted in several rounds of investment, making Porsche an important shareholder of the company.

With many OEMs across the world being Rimac customers, it is important, both for Rimac and Porsche, that we remain an entirely independent business. Our projects and our shareholders are – and will always be – entirely separate, allowing us to maintain the information firewall that our partners rely on, and enabling us to continue working with many OEMs. The partnership with Porsche helps the company develop and grow which is beneficial for all of our customers.”

“Rimac is excellently positioned in prototype solutions and small series,” says Lutz Meschke, Deputy Chairman of the Executive Board and Member of the Executive Board for Finance and IT at Porsche AG. “Mate Rimac and his team are important partners, especially when it comes to supporting us in the development of components. Rimac is well on its way to becoming a Tier 1 supplier for Porsche and other manufacturers in the high-tech segment.

“Porsche has already placed its first orders with Rimac for the development of highly innovative series components,” says Meschke. “Both partners benefit from this closer collaboration,” Meschke emphasizes: “Mate Rimac inspires us with his innovative ideas. By the same token, he benefits from our know-how in production and methodological expertise in development. Our investment in the company has turned out to be absolutely right. Rimac’s value has increased many times over since our initial investment. In addition, the company has developed very well technologically. We are expanding our cooperation step by step and are also benefiting from Rimac’s strength in innovation.”

Mate Rimac first dreamed of creating his own electric supercar in 2009, working in his garage in Croatia. Just two years later Rimac Automobili revealed the world’s first electric supercar, the Concept_One. With limited resources, Mate and a small team developed many of the components for the car in-house, while also developing electrified vehicle technology for other brands. Porsche’s first investment came in June 2018, and Hyundai Motor Group invested in May 2019.

In just 10 years, Rimac Automobili went from garage to global and this year will release its second generation electric hypercar, codenamed C_Two. Every major component of the C_Two has been designed, engineered and produced by the in-house team at Rimac. Following a multi-year development process of virtual and real-world testing and homologation, the C_Two will be revealed to the world in just a few months. The C_Two, limited to just 150 units, is available in the world’s key markets via Rimac Automobili’s global network of dealer partners.

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Bolt Bags €20 Million From World Bank’s IFC to Expand Operations in Emerging Economies

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Bolt, the leading European mobility platform, announced new funding of €20 million received from World Bank’s IFC.

“We’re delighted to announce that we’ve received €20 million in funding from the International Finance Corporation (IFC), a member of the World Bank Group”, Bolt said.

The investment came less than three months after the Estonian company raised €150 million in a round led by D1 Capital Partners.

Through this investment, Bolt will continue to develop mobility solutions that create earning opportunities, stimulate entrepreneurship and improve access to transportation in emerging economies. One of the shared goals of Bolt and the IFC is to empower women and improve their access to mobility.

According to Stephanie von Friedeburg, IFC Senior Vice President of Operations,  “Technology can and should unlock new pathways for sustainable development and women’s empowerment.”

“Our investment in Bolt aims to help tap into technology to disrupt the transport sector in a way that is good for the environment, creates more flexible work opportunities for women, and provides safer and more affordable transportation access in emerging markets.”

Recently, Bolt introduced a women-only ride-type in South Africa for her customers to address safety needs, enable women passengers to connect with women drivers, improve women’s mobility and access to earning opportunities.

Markus Villig, CEO of Bolt, said the goal of the company and its partnership with IFC is to Provide strategic value to emerging economies

“We are looking forward to partnering with IFC to further support entrepreneurship, empower women and increase access to affordable mobility services in Africa and Eastern Europe.

“Together with the investment from the European Investment Bank last year, we are proud to have sizable and strategically important institutions backing us and recognising the strategic value Bolt is providing to emerging economies.”

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