Uber loses 930 million euros third quarter expects profit 2021: Uber has lost 1.100 million dollars from July to September, about 930 million euros, as reported in its quarterly results presentation this Friday.
The North American company has more than doubled the revenue of its food delivery business, Uber Eats, to enter 1.450 million dollars (1.120 million euros), its all-time high. Still, he's still losing money.
On the other hand, its car-with-driver travel unit has recovered some of the free fall it experienced in April, but its bookings are still up 50% from last year. In any case and against other segments, it has recorded a gross operating result (ebitda) of 245 million dollars.
But Uber has called for caution because governments are once again imposing restrictions on mobility due to the coronavirus, which directly affects this business.
In total, the company has recorded revenues of 3.130 million dollars in the third quarter (2.640 million euros).
Thus, Uber's recovery will depend heavily on the course of the pandemic, because a new increase in those infected will cause Uber users to stay more at home or prefer not to use their cars, which could be extended to 2021.
Likewise, the giant cannot be sure that home orders will remain at current levels.
Uber loses 930 million euros third quarter expects profit 2021
For now, the company is confident in reducing costs and growing its food orders, which, in the end, is reducing losses although it is still a ballast and not a float. In the second quarter Uber lost 1.8 billion.
All in all, Uber expects to be profitable before the end of 2021; although quarterly revenue and adjusted losses for this quarter have not met what Wall Street analysts had expected. In that context, Uber shares fell by 2% after the market close.
The company now faces a moment of change: it has just divested itself of its truck business, Uber Freight and there are media that have published that it is looking to sell also its share of flying taxis, Uber Elevate.
To the contrary, in July Uber bought the food-to-home startup Postmates and in August it acquired Autocab, a British software for taxis, for an amount it has not disclosed.
In addition, to deal with all these losses, Uber has laid off 6,700 workers, 25% of the workforce —in Spain, the company has agreed an ICO and has fired one in 3 employees— and has also divested itself of its bike and electric scooter business and shared Jump that now passes to control Lime —in which the company is an investor—.
On the other hand, California voters voted this Wednesday and the result pointed out that the company will be able to continue to classify its drivers as "freelancers" and not as a workforce, which opens the doors for many other companies to use the same model in the rest of the country, according to Reuters.
Uber loses 930 million euros third quarter expects profit 2021
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The government limits streaming platforms: HBO or Netflix will have to finance European cinema with 5% of what they generate in Spain
It doesn't matter what they declare for tax purposes. Streaming platforms will also be obliged, like TV operators, to finance European cinema with 5% of what they generate in the Spanish market. This is what sources from the Ministry of Economic Affairs and Digital Transformation say, and this is revealed in the new draft General Law on Audiovisual Communication.
The preliminary draft that has just been published on the ministry's website will update the current Audiovisual Communication Law, which is already more than 10 years old. In addition, it will transpose the European directive 2018/1808.
Spanish government sources state that with this new law is intended to create a balanced regulatory framework and encourage investments in the Spanish audiovisual sector, as well as collect the multiple changes that has lived in the sector during the last decade.
Changes also of habits and consumption that, on the other hand, have also been increased by the COVID-19 pandemic. In addition to the arrival of new players in recent years —such as video sharing platforms such as YouTube or Twitch or video— on-demand services such as Netflix or HBO-these have seen their audiences and revenues multiply during the months of confinement.
For the government, HBO or Netflix have their tax offices outside Spain is no problem. The National Market and Competition Commission (CNMC) will continue to be the body that regulates the contributions that these operators —who will now also become part of a state register— make to finance European cinema.
The new law provides that 30% of the catalog of these streaming platforms are European works, as included in the directive that, de facto, is being transposed. To prevent only the regulatory bodies of the European countries in which the main platforms are based, the CNMC is already coordinated with its counterparts in the rest of the member states of the Union.
In this way, it will be the CNMC that makes information requirements to the main companies in the sector so that they inform you of how much money has generated their activity in Spain, and based on this, claim 5% of it for European Film Production.
What these technology companies are getting rid of at the moment is to finance public television. To modify the RTVE financing rules, the government would have to modify the RTVE Financing Law, which already has more than 11 years in force and in which at the moment there are no changes on the horizon.
YouTube would not be exempt from these new conditions as long as it had its own catalog, which Google's video platform enjoyed through YouTube TV.
Advertising in audiovisual operators will also change. The new standard integrates what was announced by the Minister of consumption, Alberto Garzón, on the advertising of bookmakers on broadcasters. But TV operators will not be the only ones affected.
Those video exchange or video on demand platforms that are registered in Spain and whose scope is national territory will also have to adapt to the changes presented by the new General Law on Audiovisual Communication.
For the latter— such as YouTube or Twitch -, mechanisms are explicitly required to verify the age of users, as well as the veto of ads that may cause harm to minors. Advertising of alcoholic beverages of more than 20º, tobacco or medicines, and advertising that generates social alarm, because it attacks the dignity or the figure of women, or commercial communications that may be illicit or subliminal, will also be prohibited.
For TV operators there are also changes: the possibility of broadcasting commercial communications in various time slots has been relaxed. Although the limit of advertising minutes remains similar-so far 12 minutes per hour— channels will now be able to adapt their inserts based on time slots. For example, channels will be able to broadcast 144 minutes of ads on the 06:00 to 18:00 strip.
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