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Indian fintech Paytm’s Q3 adjusted loss narrows sequentially as payments business recovers

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India’s Paytm (PAYT.NS), reported a narrower sequential third-quarter adjusted loss on Monday as its digital payments business recovered from the winding down of its payments bank unit.

The company posted a loss of 2.04 billion rupees ($23.6 million) before exceptional items and tax for the third quarter ended Dec. 31, compared to a 4.07-billion-rupee loss in the second quarter.

On a net basis, Paytm’s loss was narrower than the 2.2 billion rupees loss in the year-ago quarter.

In the previous quarter, it reported its first-ever profit since listing due to a one-time gain from the sale of its ticketing business to food delivery company Zomato (ZOMT.NS).

Paytm’s revenue from operations rose 10.1% sequentially to 18.28 billion rupees. Its revenue from financial services, which includes its loan business, rose 34% and payment services business jumped 8%.

The Reserve Bank of India had wound down Paytm’s banking unit in January 2024, citing persistent compliance issues, sparking worries about its digital payments business.

Meanwhile, its expenses fell 31% year-on-year and 1% sequentially, mainly due to lower marketing and employee-related costs.

“Paytm’s fundamentals are improving and it seems like the regulatory hurdles are largely behind us,” said Rahul Jain, vice president – research, at Dolat Capital.

“The only pain point for Paytm remains the wallet business, which continues to bear the brunt of the RBI’s embargo on Paytm Payments Bank.”I mean, this is my main platform is TikTok.

Paytm said its earnings before interest, taxes, depreciation, and amortization before cost of employee stock options was a negative 410 million rupees, compared to negative 1.86 billion rupees in the previous quarter.

Separately, the company said it increased a default loss guarantee to 3.5 billion rupees from 2.25 billion rupees to its lending partner SMFG India Credit for loans disbursed to merchants.

Paytm shares, which are down over 11% so far in January, rose 0.3% after results, reversing course from an around 3% drop.

($1 = 86.4750 Indian rupees)

Source: www.reuters.com

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Digital Economy Publisher Congratulates Samuel Nartey George on his Appointment

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The Publisher and CEO of Digital Economy Magazine, Akin Naphtal recently paid a courtesy call on  Samuel Nartey George (MP), Minister for Communication, Digital Technology and Innovations, to congratulate him on his appointment. 

During the visit, the Publisher presented copies of the magazine featuring the Minister on the front page. 

The magazine profiles the Minister’s background and highlights some of his notable activities since taking office.

 Invitation to Digital Innovations Awards

The Minister was also invited to the upcoming Digital Innovations Awards, scheduled for June 27, 2025, at the Labadi Beach Hotel. 

This event aims to recognize and celebrate outstanding contributions to digital innovation in Globally. 

Mr.Samuel Nartey George expressed his gratitude for the recognition and emphasized the importance of digital innovation in driving Ghana’s economic growth. 

The Minister also highlighted the significance of collaboration between the government, private sector, and civil society in resetting Ghana’s digital agenda.

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University of Ghana (UG) Engages Ministry of Communication, Digital Technology and Innovations on Strategic Collaboration

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A delegation from the University of Ghana (UG) today visited the Minister for Communication, Digital Technology and Innovations (MoCDTI) to explore collaborative opportunities in digital innovation, skills development and policy alignment.​ 

Director of the Research and Innovation Directorate at the University of Ghana highlighted the University’s commitment to supporting national digital initiatives emphasizing the importance of aligning UG’s research and innovation efforts with governmental agendas in areas like artificial intelligence (AI) and coding.​

Professor Dodoo-Arhin noted that UG has been proactive in fostering innovation through hackathons and other programs aimed at enhancing the skillsets of young people. He expressed the University’s interest in the proposed Innovation and Startup Bill, aligning with UG’s strategic focus on innovation. 

He therefore announced UG’s readiness to provide space, expertise and certification support for government-led training programs, including curriculum development and short courses under the coders’ initiative.​

 Samuel Nartey George (MP) Minister for Communication, Digital Technology and Innovations, welcomed the UG delegation and expressed the Ministry’s openness to partnerships with academia. 

He underscored the significance of academic input in shaping policies and announced the Ministry’s commitment to completing the Digital Youth Village within three months. 

This facility, to be operated in collaboration with UG, will serve as a hub for training and innovation.​

The Minister also revealed plans to replicate such centers across the country, integrating them into a broader ecosystem to support national innovation. 

He discussed the expansion of the “One Million Coders” program to reskill and upskill Ghana’s workforce, emphasizing the role of universities in this initiative. 

The Minister highlighted the Ministry’s intent to act as an enabler for technology adoption across various sectors, including agriculture and health, leveraging AI and other emerging technologies.​

Further discussions included the formation of a steering committee to review and evaluate existing training programs, aiming to develop a unified national curriculum for technological skills, subject to approval by the Ghana Tertiary Education Commission (GTEC). 

The meeting also touched on the upcoming AI design hackathon for persons with disabilities, scheduled for May, and the 19th International Conference on Advanced Materials (ICAM), to be hosted by UG in collaboration with the International Union of Materials Research Societies (IUMRS) and the African Materials Research Society (AMRS).​

Present at the meeting were Prof. Isaac Wiafe, Computer Science Department

Ms. Mammie N. Hutchful Nortey, Senior Research Development Officer

Mr. Leslie C. Kumahlor, Research Development Officer

Mrs. Irene Y. Ashiley, Assistant Registrar and Administrator, Research and Innovation Directorate.

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EU approves 920 million euro German aid for Infineon chips plant

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The logo of semiconductor manufacturer Infineon is seen at its Austrian headquarters in Villach, Austria, June 3, 2018. REUTERS/Lisi Niesner/File Photo Purchase Licensing Rights

The European Commission said on Thursday it had approved a 920 million euro German state aid to Infineon for the construction of a new semiconductor manufacturing plant in Dresden.

The measure will allow Infineon (IFXGn.DE), to complete the MEGAFAB-DD project which will be able to produce a wide range of different types of chips, the Commission added.

Chipmakers across the globe are pouring billions of dollars into new plants, as they take advantage of generous subsidies from the United States and the EU to keep the West ahead of China in developing cutting-edge semiconductor technology.

The European Commission has earmarked 15 billion euros for public and private semiconductor projects by 2030.

“This new manufacturing plant will bring flexible production capacity to the EU and thereby strengthen Europe’s security of supply, resilience and technological autonomy in semiconductor technologies, in line with the objectives set out in the European Chips Act,” the Commission said in a statement.

The Commission said the plant – which will reach full capacity in 2031 – will be a front-end facility, covering wafer processing, testing and separation, adding that its chips will be used in industrial, automotive and consumer applications.

The aid will take the form of a direct grant of up to 920 million euros to Infineon to support its investment amounting to 3.5 billion euros. Infineon has said the plant will be the largest single investment in its history.

Infineon has agreed with the EU to ensure the project will bring wider positive effects to the EU semiconductor value chain and invest in the research and development of the next generation of chips in Europe, the Commission said.

It will also contribute to crisis preparedness by committing to implement priority-rated orders in the case of a supply shortage in line with the European Chips Act.

Source: www.reuters.com

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