SCB X Public Company Limited (SET: SCB) announced yesterday that it will cease the operation of Robinhood, a food delivery application, that has been operating since the Covid-19 pandemic in 2020.
SCB disclosed that the Board of Directors Meeting No. 12/2567, which was convened on 25 June 2024, approved to cease all services provided through the Robinhood application by Purple Ventures Company Limited (PPV), a wholly-owned subsidiary of SCBX.
This cessation of the application will take effect on 31 July 2024. This decision follows the successful completion of the Robinhood application’s mission to alleviate the impact of the Covid-19 pandemic on society.
The cessation of services aligns with a sound capital management framework aimed at maximizing shareholders’ returns. This decision will not affect the SCBX Group’s strategic plans or its commitment to developing the business in accordance with its mission to become a leading financial technology group.
Upon looking at the financial performance of Purple Ventures Company Limited, the company recorded 81,549 million baht of revenue in 2020 with a net loss of 87.8 million baht.
In 2021, the company had 15.78 million baht of revenue and a 1,335 million baht of net loss.
Purple Ventures Company Limited recorded 1,986 million baht and 2,155 million baht of net loss in 2022 and 2023, respectively, despite an increase in revenue in those years.
Krungsri Securities (KSS) has a neutral view on the closing of PPV, while expecting this to give an upside to SCB’s bottom line of around 3-4% as the company will no longer record a net loss from the delivery operation.
KSS maintained a “Trading Buy” recommendation on SCB with a target price at THB115 per share, while believing that the termination of Purple Ventures Company Limited would not impact SCB’s dividend yield, which would remain at 8-10%.
