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Why Asia-Pacific Is About to Be Huge for Facebook

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Facebook CEO Mark Zuckerberg says Messenger in Thailand, for example, is twice as high as the global average.

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About half of Facebook’s revenue comes from the U.S. and Canada, even though the two countries account for just 13% of the social network’s monthly active users. Not only is the U.S. Canada Facebook’s largest market by revenue, its average revenue per user is growing faster than any other region.

But that trend may change as Facebook looks to grow its advertising on Instagram and start monetizing Messenger and WhatsApp. Southeast Asia represents a huge opportunity for Facebook to grow, as more than 30% of online commerce in that region takes place through social media, according to estimates from consulting firm Bain & Co. That compares to just 7% in the United States.

As Facebook develops more ways to facilitate online commerce through all of its apps, it stands to rapidly increase its average revenue per user in a region with a user base that’s already larger than the U.S. and growing much faster.

Making Money with Facebook Messenger

Most social commerce in Southeast Asia takes place through a messaging app like WhatsApp or Line. A user will first find an item on Facebook or Instagram, and message the business for more information on the product and to place an order.

The amount of organic interaction between users and businesses on Facebook’s messaging apps is significantly higher than in other regions. Facebook says the number of messages users send to businesses on Messenger in Thailand, for example, is twice as high as the global average.

That’s important to note because Facebook CEO Mark Zuckerberg says that’s a key step in monetizing its apps. Once users and businesses are interacting on their own, Facebook can monetize an app by releasing tools to reach more people.

Line is a step ahead of Facebook. It offers a tool called Line@ in Southeast Asia that’s used by more than 2 million businesses. Line@ businesses can broadcast coupons and promotions to users and customize their Line handles for a fee. Line also facilitates commerce like grocery orders and taxi rides in certain countries. Line won’t disclose how much it makes directly from commerce activities, but it’s generated nearly 325 billion yen ($2.8 billion) over the last four quarters.

Facebook has 629 million monthly active users in its Asia-Pacific region. It’s a good bet most of those users are on either Messenger or WhatsApp as well. With their social commerce behavior, it should be one of the first places Facebook is able to generate significant revenue from its messaging apps.

Fueling Regular Ad Growth

Consumers’ penchant for shopping on Facebook and Instagram in Southeast Asia should also drive Facebook’s existing advertising revenue on the two platforms. As more consumers and businesses come online, advertisers will have to spend more to stand out from the crowd.

Facebook CFO Dave Wehner recently warned that it has nearly saturated the ad loadon its flagship platform — the number of ads it can squeeze into users’ News Feeds. Raising rates through an increase in demand should enable Facebook to continue growing its ad revenue on Facebook and Instagram.

Additionally, Facebook introduced an ad that directs users to message businesses directly through Messenger. That ad unit may grow more popular and useful after Facebook introduces more tools to help businesses grow their sales through Messenger.

Facebook’s average revenue per user in Asia-Pacific was just 12% of that in the U.S. and Canada last quarter. And while the standard of living remains below that in the U.S., investors should watch for Facebook to close that gap over the next few years. Couple that with the continued user growth in the region, and Asia-Pacific will be a huge revenue driver for the social network.

By Adam Levy

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PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

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(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.

This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.

Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.

Pepsi’s beverage sales fell this quarter.

The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.

Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.

Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.

The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.

Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.

Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.

Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.

Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.

Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”

Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.

The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.

Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.

The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.

Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”

Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.

The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.

Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.

The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:

SOURCE: CNBC

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Old National Bank And Infosys Broaden Their Strategic Partnership.

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Old National Bank And Infosys Broaden Their Strategic Partnership.

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(VOR News) – Old National Bank, a commercial bank with its headquarters in the Midwest, and Infosys, a firm that specializes in information technology, have recently entered into a strategic expansion of their link, which has been in place for the past four years.

This expansion is more likely to take place sooner rather than later, with the likelihood being higher.

For the purpose of making it possible for Old National Bank to make use of the services, solutions, and platforms that are offered by Infosys, the objective of this expansion is to make it possible for the bank to transform its operations and processes through the application of automation and GenAI, as well as to change significant business areas.

This lets the bank leverage Infosys’ services, solutions, and platforms.

Old National Bank Chairman and CEO Jim Ryan said, “At Old National, we are committed to creating exceptional experiences for both our customers and our fellow employees.”

This statement is applicable to Old National Bank. Infosys is carefully managing the business process innovations that it is putting us through, putting a strong emphasis on efficiency and value growth throughout the process to ensure that it is carried out efficiently.

This is a routine occurrence throughout the entire operation. Because of Infosys’ dedication to our development and success, we are incredibly appreciative of the assistance they have provided.

Old National has been receiving assistance from Infosys in the process of updating its digital environment since the year 2020, according to the aforementioned company.

Ever since that time, the company has been providing assistance. The provision of this assistance has been accomplished through the utilization of a model that is not only powerful but also capable of functioning on its own power.

Infosys currently ranks Old National thirty-first out of the top thirty US banks.

This ranking is based on the fact that Old National is the nation’s largest banking corporation.

It is estimated that the total value of the company’s assets is approximately fifty-three billion dollars, while the assets that are currently being managed by the organization are valued at thirty billion dollars.

Dennis Gada, the Executive Vice President and Global Head of Banking and Financial Services, stated that “Old National Bank and Infosys possess a robust cultural and strategic alignment in the development, management, and enhancement of enterprise-scale solutions to transform the bank’s operations and facilitate growth.”

This remark referenced the exceptional cultural and strategic synergy between the two organizations. Dennis Gada is the one who asserted this claim. This was articulated explicitly concerning the exceptional cultural congruence and strategy alignment of the two organizations.

We are pleased to announce that the implementation of Infosys Topaz will substantially expedite the transformation of Old National Bank’s business processes and customer service protocols. We are exceedingly enthusiastic about this matter. We are quite thrilled about this specific component of the scenario.

Medium-sized banks operating regionally will continue to benefit from our substantial expertise in the sector, technology, and operations. This specific market segment of Infosys will persist in benefiting from our extensive experience. This phenomenon will enable this market sector to sustain substantial growth and efficiency benefits.

SOURCE: THBL

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American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

States Sue TikTok, Claiming Its Platform Is Addictive And Harms The Mental Health Of Children

Qantas Airways Apologizes After R-Rated Film Reportedly Airs On Every Screen During Flight

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American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

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water

The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.

water

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.

water

The corporation stated that it has alerted legal enforcement and is cooperating with them. It also stated that consumers will not be charged late fees while its systems are unavailable.

According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.

SOURCE | AP

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