Aug 4 (Reuters) - Singapore's Grab raised its annual revenue and profit forecasts on Tuesday, banking on promotions and expansion efforts to drive demand for its ride-hailing and delivery services.
The upbeat projections and a new $750 million share buyback program pushed shares of the Nasdaq-listed company up 3% in extended trading. The stock is down more than 26% this year.
Grab, the biggest ride-hailing and delivery firm in Southeast Asia, has rolled out features such as order bundling and a budget-friendly
tier called "Saver", targeting cost-conscious customers grappling with higher fuel prices following the Iran war.
The company is also rapidly scaling its grocery delivery operations, one of its fast-growing segments, as well as its financial services business by building out its loan and insurance offerings for riders and merchants on its platform.
Gross merchandise value (GMV), or the total dollar value of transactions, across Grab's mobility and deliveries businesses climbed 21% to $6.5 billion in the second quarter, driven by growth in the number of active users.
Grab, which serves 54 million users in over 900 cities, said it invested $706 million in incentives for customers and drivers in the quarter, including more than $7 million to support driver earnings amid the fuel crisis.
The company now expects revenue between $4.10 billion and $4.15 billion for 2026, compared with its prior projection of $4.04 billion to $4.10 billion. Analysts were expecting annual revenue of $4.12 billion, according to data compiled by LSEG.
It also raised its forecast for annual adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to between $720 million and $740 million, from $700 million to $720 million earlier.
Revenue rose 22% to $997 million in the second quarter ended June, beating analysts' estimate of $990.8 million.
(Reporting by Deborah Sophia in Bengaluru; Editing by Diti Pujara and Sriraj Kalluvila)
