06/02/2025

BIZ & FINANCE THURSDAY | FEB 6, 2025

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Ferrari plans electric car debut in October

BNP Paribas reports jump in net income PARIS: France’s BNP Paribas reported a forecast-beating jump in net income in the fourth quarter as its investment bankers rode a surge in trading activity, but the lender lowered a key profit target for 2025 and said it would cut costs further. The euro zone’s biggest bank by assets said group net income rose by 15.7% to €2.32 billion (RM10.6 billion) for the three months ending in December, beating the €2.24 billion average of 13 analyst estimates compiled by the company. Revenue over the period increased by 10.8% to €12.1 billion, also above the €11.6 billion analyst average estimate. BNP has disappointed investors in recent quarters and its shares were among the worst performing of major lenders last year, losing nearly 7% while European rivals’stock soared, so Tuesday’s fourth-quarter and full-year results will be a relief for long-time CEO Jean-Laurent Bonnafe. Investment banking revenue climbed 20% in the fourth quarter, driven by revenue from trading in fixed income, currencies and commodities (FICC) soaring 34% and equity prime services’ sales by 30%. BNP’s performance in FICC trading beat the average growth among Wall Street banks, which Jefferies calculated at 26%. Bonnafe has bet on BNP’s investment bank to fill gaps left by retreating European rivals and compete with dominant US peers. In recent quarters, the investment bank has helped offset sluggish retail performance at BNP, as record inflows into government-regulated high-interest savings squeezed French banks’ margins, while lenders elsewhere in the euro zone benefited from higher rates. – Reuters ADM misses estimates, announces layoffs CHICAGO: Grain merchant Archer-Daniels-Midland on Tuesday missed Wall Street expectations for fourth-quarter profit and said it would lay off about 700 employees globally. Reuters had reported last week that the grain trader would soon start laying off employees in a global effort to cut costs, as low crop prices weighed on the company’s profit. Corn, soybean and wheat prices hit four-year lows in 2024 as global stocks ballooned to multi-year highs, whittling down margins for agribusinesses such as ADM that make money from storing, processing and trading around the world. The firm expects to deliver about US$500 million to US$750 million over the next five years through improvements in manufacturing costs, reduction in purchased materials and services. ADM forecast adjusted earnings to be in the range of US$4 to US$4.75 per share in 2025 due to weaker market fundamentals and ongoing biofuel and trade policy uncertainty. Analysts on average were expecting US$4.67 per share. The company, however, increased its quarterly dividend to 51 cents per share from 50 cents earlier. The Chicago-based company posted an adjusted profit of US$1.14 per share for the three months ended Dec 31, compared with analysts’ average estimate of US$1.15 per share, according to data compiled by LSEG. – Reuters

MILAN: Ferrari is preparing the landmark launch of its first fully electric car in October, the luxury sports car maker said on Tuesday, while targeting an increase of at least 5% in revenues and core earnings this year. Breaking its tradition for roaring petrol engines, Ferrari’s much-awaited EV will be showcased at a capital markets day on Oct 9, at the company’s Maranello base in Italy, CEO Benedetto Vigna said. That is at the very beginning of the fourth quarter, the period Ferrari has repeatedly flagged for the launch. Vigna declined to provide details about the model, beyond saying it would be launched o No plans to accelerate shipments to America to beat tariffs

profitability targets set for 2026. Ferrari buyers often add individual touches to their cars at extra cost, mainly relating to paint, livery and use of carbon. They amounted to around 20% of total revenues last year, versus 19% in 2023, CFO Antonio Picca Piccon said, adding the company saw a similar level in 2025. An increase in deliveries to US clients also supported the 2024 result. But there are no plans to accelerate shipments there to try to get ahead of possible tariffs, Vigna said. Ferrari, which last year delivered 13,752 cars, 89 more than in 2023, currently sets a cap of 10% on deliveries to China. Vigna said China, where EVs are highly popular, could provide an opportunity for the new EV model, also due to lower taxes there than on petrol vehicles. Any planned change to Ferrari’s sales cap policy in China would be communicated at the capital markets day in October. – Reuters

“in a unique and innovative way”. The EV will be one of six new models the company plans to roll out this year, Vigna said, adding its plans would not be affected by the policies of Donald Trump’s administration in the United States or by the risk of a trade war. Ferrari started offering its wealthy clients hybrid models in 2019. Hybrids made up 51% of its car sales last year. The Italian company on Tuesday forecast its earnings before interest, taxes, depreciation and amortisation (EBITDA) would increase to at least € 2.68 billion (RM12 billion) in 2025, from € 2.56 billion in 2024. Milan-listed shares in the company were up 7.6% at 1600 GMT (12am in Malaysia). Demand for personal touches on cars, a strong product mix and pricing power drove a 12% increase in 2024 EBITDA. “On these solid foundations, we expect further robust growth in 2025,” Vigna said, adding this would allow Ferrari to meet one year in advance the high-end of most of its

A 1954-55 Ferrari Tipo 555 Super Squalo on display during the ‘Les Grandes Marques du Monde’ exhibition in Paris. – AFPPIC

Spotify logs first annual profit, number of users tops forecast STOCKHOLM: Music streaming giant Spotify reported its first annual profit on Tuesday, with the number of active users growing more than expected in the fourth quarter to reach 675 million. The company reported a net profit of €1.1 billion (RM5 billion) for 2024, compared to a net loss of €532 million in the previous year. “I am very excited about 2025 and feel really good about where we are as both a product and as a business,” Spotify CEO Daniel Ek said in a statement. The company also had its first ever annual operating profit, which reached €1.4 billion. Its operating profit climbed to a record €477 million in the fourth quarter. It was short of Spotify’s guidance of €481 million for the quarter, but it drastically improved from a loss over the same period in 2023. The number of active users grew 12% year-on-year in the fourth quarter to reach 675 million, beating its guidance by 10 million. The number of paying subscribers grew 11%, reaching 263 million. Four-quarter revenue grew 16% to €4.2 billions. The music streaming service also said it paid out a record US$10 billion in royalties to the music industry in 2024. “Looking into 2025, we view the

business as well positioned to deliver another year of continued growth and improving margins as we reinvest to support our long-term potential,” Spotify said in its earnings report. For the first quarter of 2025, Spotify expects to reach 678 million monthly active users and 265 million paying subscribers. – AFP