PayPal’s Q4 margin contraction eclipses upbeat 2025 profit forecast

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By Manya Saini

PayPal (PYPL.O),  shares fell 5% in premarket trading on Tuesday after the digital payments giant’s operating margin shrank in the fourth quarter, raising concerns over the possibility of a sluggish recovery and overshadowing a strong profit forecast for 2025.

Investors have been worried about challenges to the company’s profit margins, which benefited for years from a first-mover advantage in the digital payments industry but had fallen behind following the pandemic amid slowing spending and rising competition.

Technology behemoths such as Apple (AAPL.O), and Alphabet’s Google (GOOGL.O), have emerged as new entrants into PayPal’s core market, while traditional card networks – Visa (V.N),  and Mastercard (MA.N), – have also expanded their digital payments footprint in recent years.

Since taking over in late 2023, PayPal CEO Alex Chriss has focused on high-margin products and touted ‘profitable growth’ as the company’s new strategy. PayPal has since pushed to revitalize growth in branded products, improve pricing and sharpen cost-cutting efforts.

The company has also worked to defend its dominant position with new products, including a “one-click” checkout feature called Fastlane, and forged lucrative partnerships with companies such as Global Payments (GPN.N),  and Fiserv (FI.N), .

While PayPal’s adjusted operating margins contracted by 34 basis points to 18% in the fourth quarter, efforts toward profitable growth helped the company close the year with margins expanding 116 basis points to 18.4%.

“We set out at the beginning of 2024 to narrow our focus, improve execution, and reposition the business,” Chriss said.

“The improvements we made to branded checkout, peer-to-peer, and Venmo, plus the progress we made on our price-to-value strategy, are beginning to show up in our results. “

PayPal expects full-year adjusted profit to grow between $4.95 and $5.10 per share, surpassing Wall Street views of $4.90 according to estimates compiled by LSEG.

Transaction margin dollars, a key measure of the profitability of its core business, increased 7% for the full year. It expects to grow TMD between 4% and 5% in 2025.

SPENDING RESILIENT DESPITE CHALLENGES

In a bright spot, consumer spending has remained resilient as Americans brush off concerns over high interest rates and shrinking savings, splurging on everything from travel to online shopping.

Analysts and investors are optimistic about the outlook for volume growth for the sector this year, though the recent imposition of tariffs by the U.S. President Donald Trump’s administration on China are seen as potentially inflationary.

For the first quarter, PayPal expects to post an adjusted profit in the range $1.15 to $1.17 per share, above expectations of $1.14.

PayPal’s net revenue increased 4% to $8.4 billion in the quarter ended Dec. 31, while total payment volume climbed 7%.

It posted a fourth-quarter adjusted profit of $1.19, topping estimates of $1.12.

PayPal’s shares surged nearly 40% in 2024, outperforming broader markets and ending three years of consecutive annual declines.

Source: www.reuters.com

Reporting by Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri

New Helios Ghana MD pays courtesy call on the Telecoms Chamber

2. Helios

(Back, L-R: Karim Ndiaye, Barbara Martinson and Kweku Frempong)

(Front,L-R: Kenneth Ashigbey and Fritz Dzeklo)

The new Managing Director of Helios Towers Ghana, Mr.  Kweku Frempong, has highlighted the immense importance of increased collaboration between the regulator of the telecommunications industry (NCA), the Ministry of Communication, Digital Technology and Innovations and the players within the ecosystem.

He made the remarks in the company of other leading executives of Helios Towers (Fritz Dzeklo, Regional CEO – West, Central & Southern Africa, Barbara Martinson -Head, Legal & Regulatory, Helios Towers, Ghana and Karim Ndiaye -Managing Director, Helios Towers, Senegal), when they paid a courtesy call on the Ghana Chamber of Telecommunications in Accra, Ghana, on Tuesday February 4, 2025.

The occasion was used to introduce Mr. Frempong, who took over as Managing Director from Mr. Angelo Govina, effective Monday February 3, 2025.

On his part the CEO of the Chamber Ing. Dr. Kenneth Ashigbey welcomed the new Managing Director and pledged the Chambers’ support, and wished him well as he takes over one of the leading infrastructure companies in Ghana.

During the interaction, which took place at the premises of the Chamber in Cantonments Accra, the group also discussed the opportunities available to improve the ecosystem for all of Ghanaians and businesses, especially as there is a new administration in place, as well as a new sector Minister and NCA Director General.

About Helios Towers

  • Helios Towers is a leading independent telecommunications infrastructure company, having established one of the
    most extensive tower portfolios across Africa. It builds, owns and operates telecom passive infrastructure, providing
    services to mobile network operators.
  • Helios Towers owns and operates over 14,000 telecommunication tower sites in nine countries across Africa and
    the Middle East.
  • Helios Towers pioneered the model in Africa of buying towers that were held by single operators and providing
    services utilising the tower infrastructure to the seller and other operators. This allows wireless operators to
    outsource non-core tower-related activities, enabling them to focus their capital and managerial resources on
    providing higher quality services more cost-effectively.

OpenAI chief Altman inks deal with S. Korea’s Kakao after DeepSeek upset

OpenAI chief Sam Altman inked a deal with tech giant Kakao in South Korea on Tuesday as the US firm seeks new alliances after Chinese rival DeepSeek shook the global AI industry.

Kakao, which owns an online bank, South Korea’s largest taxi-hailing app and KakaoTalk, announced a partnership allowing them to use ChatGPT for its new artificial intelligence services, joining a global alliance led by OpenAI amid intensifying competition in the sector.

Altman’s company is part of the Stargate drive announced by US President Donald Trump to invest up to $500 billion in AI infrastructure in the United States.

But AI newcomer DeepSeek has sent Silicon Valley into a frenzy, with some calling its high performance and supposed low cost a wake-up call for US developers.

“We’re excited to bring advanced AI to Kakao’s millions of users and work together to integrate our technology into services that transform how Kakao’s users communicate and connect,” said Altman.

“Kakao has a deep understanding of how technology can enrich everyday lives,” he added.

Kakao’s CEO Shina Chung said the company was “thrilled” to establish a “strategic collaboration” with OpenAI.

Also on Altman’s agenda were meetings with two top South Korean chipmakers, Samsung and SK hynix, both key suppliers of advanced semiconductors used in AI servers.

Altman met with SK Group chairman Chey Tae-won and SK hynix CEO Kwak Noh-jung in Seoul to discuss collaboration on AI memory chips, including high bandwidth memory (HBM), and AI services.

He is also expected to meet with Samsung Electronics chairman Lee Jae-yong later Tuesday.

Jaejune Kim, executive vice president of Samsung’s memory business, said last week that the company was “monitoring industry trends considering various scenarios” when asked about DeepSeek.

DeepSeek’s performance has sparked a wave of accusations that it has reverse-engineered the capabilities of leading US technology, such as the AI powering ChatGPT.

OpenAI warned last week that Chinese companies are actively attempting to replicate its advanced AI models, prompting closer cooperation with US authorities.

OpenAI says rivals are using a process known as distillation in which developers creating smaller models learn from larger ones by copying their behaviour and decision-making patterns — similar to a student learning from a teacher.

The company is itself facing multiple accusations of intellectual property violations, primarily related to the use of copyrighted materials in training its generative AI models.

Source: www.msn.com

Previous SIM card registration was incomplete, not useless – Ken Ashigbey

The Chief Executive Officer of the Ghana Chamber of Telecommunications, Dr. Kenneth Ashigbey, has clarified that the previous SIM card registration exercise was not useless but rather incomplete.

His remarks come after the Minister-Designate for Communications, Digital Technology, and Innovation, Sam Nartey George, announced plans for a new SIM card re-registration process to correct issues from the previous exercise.

In 2022, the government required SIM cardholders to link their numbers with their Ghana Cards. However, the process was marred by inefficiencies, long queues, and SIM blockages for those who failed to comply.

During his vetting, Sam George criticized these challenges and pledged to introduce a more seamless system that integrates directly with the National Identification Authority (NIA) database.

Speaking on Eyewitness News on Citi FM on Monday, February 3, Ashigbey explained:

“I wouldn’t say it is useless. I would say it was incomplete. The thing about it is the fact that the biometric data that was collected was not reading properly.”

He pointed out that the fingerprint data was not captured as accurately as the NIA’s system, stressing the importance of using the NIA database as the “single point of truth.”

“What we should have done was use the NIA database to complete the cycle,” Ashigbey noted.

He explained that while the initial phase of SIM registration verified data against the NIA database, the second phase—biometric verification—was flawed.

“We do the liveliness test, we do the likeliness test, we collect the biometric data, but we don’t compare it with the single point of truth, which is the NIA database,” he stated.

Ashigbey emphasized the need to correct this gap to ensure the new registration process is comprehensive and effective.

Source: Citi Newsroom

Telecel Advocates for Fair Competition in Ghana’s Telecom Sector

Telecel

Telecel Ghana is actively engaging with stakeholders to promote fair competition and innovation within the country’s telecommunications industry. As one of the key players in the sector, Telecel is committed to fostering a balanced regulatory environment that benefits both businesses and consumers.

The company’s efforts come at a time when the telecom landscape in Ghana is evolving rapidly, with increasing demand for reliable and affordable services. Telecel’s push for equitable policies highlights its dedication to ensuring that all market participants can thrive, ultimately driving growth and improving service quality for Ghanaians.

In a recent development, Telecel has initiated constructive discussions with the newly appointed Director-General of the National Communications Authority (NCA), Rev. Ing. Edmund Fianko led by Telecel’s Chief Operating Officer, Mr. Mohamad Ghaddar.

This engagement underscores Telecel’s commitment to collaborating with regulators to address industry challenges and explore opportunities for growth. The dialogue aims to strengthen the relationship between the private sector and regulatory bodies, fostering a more transparent and cooperative ecosystem.

By working closely with the NCA and other industry partners, Telecel is optimistic about the future of Ghana’s telecom sector. The company believes that such collaborations will pave the way for innovative solutions, enhanced service delivery, and a more inclusive digital economy.

As the telecom industry continues to evolve, Telecel remains focused on its mission to contribute positively to Ghana’s digital transformation journey, ensuring that all stakeholders benefit from a fair and thriving market.

Source: News Ghana

Airtel Zambia suffers new network outage

Airtel

Airtel Zambia experienced a new network outage over the weekend, enraging subscribers who were unable to access services.

Airtel users were left in the dark on Sunday due to the outage.The outage impacted online taxi services, mobile money transfers, and betting platforms.

While the mobile operator claimed that the outage only affected internet services, customers reported that they were unable to make calls or use their mobile money services.

Late afternoon, Airtel announced that services had been restored, and the telco’s communications office apologised to customers.

“We sincerely apologise for the inconvenience this may have caused and appreciate your patience during this time,” said Airtel.

However, by late Sunday, there were complaints across the country that network problems continued.

In several places, subscribers expressed worry that their data and airtime had been depleted following the restoration.

Source: extensia.tech

Africa needs to fast-track the operationalization of PAPSS – President Mahama urges

mahamas

President John Mahama has charged African leaders to prioritize fast-tracking the full operationalization of the Pan-African Payment and Settlement System (PAPSS).

According to him, this, when done, will facilitate the payment of goods and services across the continent, eliminating a key barrier that continues to hinder increased trade.

He made the remarks at the Africa Prosperity Dialogues 2025 in Accra, this February.

“We must fast-track the full operationalization of the Pan-African Payment and Settlement System to facilitate the payment for goods and services across our continent.”

In addition to the operationalization of PAPSS, President Mahama also highlighted the need to invest in infrastructure, such as an efficient rail and road networks, ports, and digital connectivity, to facilitate trade.

 “Trade liberalization in itself is not enough. We must invest in infrastructure to facilitate trade, such as efficient road and rail networks, ports and digital connectivity. We must strengthen African supply chains to ensure that our industries produce goods and services that meet both regional and global standards. We must harmonize our trade policies to eliminate non-tariff barriers and reduce the cost of doing businesses across borders.”

According to President Mahama, if the above listed actions are taken, Africa can unlock a 3.4 trillion-dollar market, creating jobs and prosperity for millions of Africans across the continent.

The three-day Africa Prosperity Dialogue (APD) brought together presidents, policymakers, and business leaders from across Africa to discuss and look into solutions to the continent’s key challenges, while leveraging available opportunities for accelerated growth.

Digital connectivity key to Africa’s vision of single market – MTN CEO

Stephen Blewett

The Chief Executive Officer of MTN Ghana, Stephen Blewett, has highlighted the crucial role of digital connectivity in realizing Africa’s vision of a single market.

Speaking at the Africa Prosperity Dialogue (APD) 2025, Mr Blewett stressed that discussions surrounding Africa’s economic integration would be meaningless without significant investment in digital infrastructure and connectivity.kamasa 0260702530(106)

kamasa 0260702530(106)© Provided by Business and Financial Times

In view of that, the CEO indicated that MTN as Africa’s leading telecommunications provider is proud to play a pivotal role in advancing digital access, integration, and economic inclusion as continent works towards achieving prosperity.

“At MTN Ghana and the MTN family we’re particularly excited about these important conversations and are proud to play a pivotal role as Africa’s leading telecommunication provider. This is because all the discussions of delivering Africa’s single market will come to naught without investing in connectivity and integration.kamasa233

kamasa233© Provided by Business and Financial Times

“Digital access, internet connectivity, digital literacy, and skills, as well as promotion of E commerce, mobile banking and a host of others are central to our vision for Africa,” he stated.

According to Mr Blewett, MTN’s commitment to digital transformation aligns with the company’s Ambition 2025 strategy, which aims to accelerate economic and social progress through cutting-edge telecommunications solutions.

He noted that by investing in digital infrastructure, the company seeks to enhance cross-border trade, financial inclusion, and access to technology that will enable African businesses and individuals to thrive.

“As a brand that is at the heart of harnessing Africa’s potential, this platform presents a fine opportunity for MTN to position itself as a valued partner in Africa’s progress, steering critical conversations and shaping our future.”

MTN Ghana, through its extensive investments in mobile connectivity and digital solutions, has been a key enabler of economic growth and financial inclusion. The company continues to bridge the digital divide by expanding access to high-speed internet and mobile money solutions, ensuring that businesses and individuals, regardless of their location, are connected to opportunities.

Addressing policymakers, industry leaders, and key stakeholders from across the continent, Mr Blewett underscored the importance of overcoming Africa’s historical challenges and shifting the narrative towards innovation, youth empowerment, and economic resilience.kamasa233 (3)

kamasa233 (3)© Provided by Business and Financial Times

“For many years, Africa has suffered a poor image as the world’s poster child with negative stereotypes such as war, disease, famine, and many others. Whilst the continent does have its challenges, the continent is a vibrant one with a youthful population that can be harnessed for productivity with the right skill set.”AFRICAN PROSPERITY DIALOGUES 2025 (10)

AFRICAN PROSPERITY DIALOGUES 2025 (10)© Provided by Business and Financial Times

The Chief Executive further urged leaders across various sectors to work together in the spirit of Pan-African cooperation to shape the continent’s narrative and seize emerging opportunities.

“When I think of these things, I am always reminded that our time is now. It’s a time of action, and we need to remember that we need to move forward with that mindset. Together, in the true spirit of Pan-African cooperation, we can control and shape our narrative, and I’m confident that we will seize the opportunities for our continent,” he stated.

The APD is an annual platform that convenes Africa’s leadership from both the public and private sector to engage, forge partnerships and commit to accelerating the creation of the continent’s single market as enshrined in the AfCFTA agreement for a prosperous Africa.

APD provides the space for Africa’s political and business leaders to work closely together to shape, drive, and deepen intra-African trade and investments to achieve the full implementation of the African Continental Free Trade Area (AfCFTA).

Source: www.msn.com

Ontario cancels Starlink deal in US tariff protest

Ontario

The leader of the Canadian province of Ontario declared it would rip up a CAD100 million ($68.5 million) contract with Elon Musk-owned SpaceX’s Starlink in response to trade tariffs imposed by US President Donald Trump.

Ontario Premier Doug Ford wrote on X today (3 February) he is also banning US companies from provincial contracts.

“We’ll be ripping up the province’s contract with Starlink” Ford wrote.

“Ontario won’t do business with people hellbent on destroying our economy.”

He also stated President Trump was the only person to be blamed for the tariffs and Ontario’s response.

“US-based businesses will now lose out on tens of billions of dollars in new revenues.”

Musk was a big backer of President Trump during the US election in 2024.

He was tapped to lead the Department of Government Efficiency (DOGE), tasked with reducing government spending and bureaucracy.

Various outlets reported President Trump imposed 25 per cent tariffs on products from Mexico and Canada, along with 10 per cent tariffs on goods from China on 1 February.  

Financial Times reported Canadian provinces are also fighting back by removing US beverages from stores.

“Canada didn’t start this fight with the US, but you better believe we’re ready to win it,” Ford stated.

NBC News reported the US and Mexico reached an accord to delay the tariffs by one month after President Trump spoke with Mexican President Claudia Sheinbaum.

It also reported the US President also delayed the tariffs for the same amount of time after speaking with Canadian Prime Minister Justin Trudeau.

Source: Mobile World Live

OpenAI clinches deal with Kakao, talks with SoftBank and Samsung about Stargate

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Summary

  • Kakao deal follows unveiling of Japan partnership with SoftBank
  • Altman says Korean firms to be important to Stargate ecosystem
  • OpenAI looking at joining South Korean AI computer centre project
  • SoftBank’s Son: potential Stargate cooperation with Samsung discussed
  • Altman due to visit India on Wednesday, sources say

SEOUL, Feb 4 (Reuters) – OpenAI said on Tuesday it will develop artificial intelligence products for South Korea with chat app operator Kakao (035720.KS), opens new tab, unveiling a second major alliance with a high-profile Asian partner this week.

OpenAI Chief Executive Sam Altman also separately sat down with the leaders of Samsung Electronics (005930.KS), opens new tab, SoftBank (9984.T), opens new tab and Arm Holdings in Seoul. SoftBank chief Masayoshi Son told reporters the Stargate AI data centre project in the United States had been discussed.

On a whirlwind tour through Asia, Altman announced a partnership with SoftBank for AI services in Japan on Monday and is, according to sources, scheduled to visit India on Wednesday where he is seeking to meet Prime Minister Narendra Modi.

Like SoftBank, Kakao said it would be using technology developed by the ChatGPT creator for its products.

Kakao operates South Korea’s dominant messaging app KakaoTalk, which has a whopping 97% domestic market share and has expanded into areas such as e-commerce, payments and gaming. It has positioned AI as a new engine of growth but analysts say it has lagged behind local rival Naver (035420.KS), opens new tab in the AI race.

“We are particularly interested in AI and messaging,” Altman told a joint press conference with Kakao CEO Chung Shina in Seoul.

He added that Korea’s energy, semiconductor and internet companies made the country an important market for OpenAI, with demand for AI products growing rapidly.

STARGATE, KOREA COMPUTING CENTRE

Altman also said many Korean companies will be important contributors to the Stargate data centre project, a venture between OpenAI and Oracle (ORCL.N), opens new tab to build AI capacity in the United States that has been backed by U.S. President Donald Trump. Altman declined to elaborate, saying he wants to keep partnership conversations confidential.

Speaking to reporters before the meeting on Stargate at Samsung’s offices, SoftBank’s Son said potential cooperation with Samsung would be discussed. Later pressed on whether Samsung was asked to join the project, he said: “We had a very good discussion,” but did not elaborate.

Rene Haas, the CEO of British chip designer Arm, which is majority-owned by SoftBank, said Samsung was “a great partner”.

Samsung declined to comment on the meeting.

Altman also met with SK Group Chairman Chey Tae-won earlier on Tuesday. Both SK Hynix (000660.KS), opens new tab and Samsung Electronics produce high bandwidth memory chips used in AI processors.

SK Hynix said discussions with Altman covered comprehensive cooperation plans for AI chips and the AI ecosystem.

Son declined to answer when asked by reporters if SK Hynix would join the Stargate initiative, saying only that no details have been decided.

Separately, asked whether OpenAI was looking at joining and investing in South Korea’s AI computing centre project, Altman said the U.S. company was “actively considering” such a move.

Last month, the South Korean government said it planned to build a national AI computing centre that would draw on investment from the public and private sectors worth up to 2 trillion won ($1.4 billion).

Kakao shares fell 2% on Tuesday after surging 9% a day earlier.

Reporting by Hyunjoo Jin and Jack Kim in Seoul, Additional reporting by Jeffrey Dastin in San Francisco and Sam Nussey in Tokyo; Editing by Edwina Gibbs