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Rocket Internet Trims Losses, Increases Debt Buyback

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e-commerce investor Rocket Internet reported progress on Thursday in cutting losses at its main start-ups with three set to generate profits by the end of 2017, while its shares were lifted by a plan to buy back convertible bonds.

Rocket Internet shares, which have been hit by concerns about mounting losses and cuts to the valuation of some of the company’s leading start-ups, were up 10.4 percent, but were still down a quarter on the year.

Finance chief Peter Kimpel said Rocket was still working towards a goal of a public listing for one of its 10 main start-ups in food delivery, fashion and home furnishings in the coming months, but said timing would depend on market conditions.

Rocket was forced to pull the listing of its HelloFresh recipe ingredients business last year, but markets have become more receptive recently to technology flotations, with rivals such as Takeaway.com and Blue Apron preparing to go public.

Along with HelloFresh, Rocket’s other most likely candidates for a listing are seen as food site Delivery Hero and emerging market ecommerce firm Global Fashion Group (GFG), which reported last week it had managed to stem its losses.

Rocket did not publish any figures on Thursday for Delivery Hero, the second-biggest in its portfolio, but Kimpel said it would give more information in due course. He also declined to comment on a recent funding round for the business.

“They are doing what they are supposed to be doing. Bringing companies to profit,” said Berenberg analyst Sarah Simon, who has a “buy” rating on the stock.

Kimpel said a decision to spend up to an additional 85 million euros on convertible buybacks by Sept. 30, 2017 was taken because Rocket now felt it had “excess capital”.

Rocket, which listed on the Frankfurt stock exchange in 2014, saw its shares tumble in July 2015 when it said it would sell 550 million euros worth of convertible bonds. In February, it said it would buy back up to 150 million euros of them.

Rocket reiterated a target set a year ago to turn three of its 10 main start-ups profitable by the end of 2017, pointing to smaller losses at home furnishings site Westwing and at GFG.

Aggregate first half revenue rose 32 percent to 1.043 billion euros ($1.17 billion), compared to the 34 percent gain achieved in the first quarter as the rapid pace of expansion at HelloFresh, Rocket’s biggest investment, slowed.

Neil Campling, tech analyst at Northern Trust Capital Markets, said that was a major concern: “It would appear that the focus on improving profitability (or rather, less losses) is dragging on growth.”

Earlier this month, Rocket reported a first-half consolidated loss of 617 million euros, mainly due to impairments on its GFG stake. On Thursday, it also said that figure included write-downs on its stake in Latin American ecommerce site Linio.

Rocket said it had decided against participating in a funding round for Linio involving Swedish investor Kinnevik , which cut the valuation of the business to 150 million euros from a previous 370 million.


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E-Business

NITDA Takes Over National Digital Architecture System

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Nigeria has taken a major step toward strengthening its digital governance framework as the National Information Technology Development Agency (NITDA) officially assumes control of the Nigeria Government Enterprise Architecture (NGEA) infrastructure.

NITDA Takes Over National Digital Architecture System

The handover ceremony held in Abuja, marks the culmination of a high-level partnership with the Korea International Cooperation Agency (KOICA).

This transition signals a shift from fragmented IT projects to a unified, disciplined approach to national digital investment.

The NGEA initiative forms a core part of the e-Government Masterplan 2.0 (Ne-GMP 2.0), aimed at establishing a unified and structured approach to managing government IT investments and digital resources.

The framework is designed to ensure that technology deployment across public institutions aligns with national priorities while improving efficiency and accountability.

With the system now operational, government agencies are expected to adopt more integrated digital processes, allowing seamless data sharing and interoperability.

This is anticipated to reduce duplication, strengthen risk management, and translate policy objectives into measurable digital outcomes.

Over the past two and a half years, Nigerian technical experts worked closely with their Korean counterparts to develop the architecture framework, create reference models, and execute pilot programmes in key institutions.

These include the National Identity Management Commission, Nigeria Customs Service, Nigeria Immigration Service, and NITDA.

Officials say the NGEA represents a shift from fragmented digital efforts to a more coordinated, citizen-focused system.

The infrastructure is hosted by Galaxy Backbone Limited, providing a secure and reliable platform for nationwide deployment.

Looking ahead, NITDA is expected to work with government stakeholders to expand and sustain the system, while the Federal Ministry of Communications, Innovation and Digital Economy will provide policy guidance to ensure its adoption across the country.

 

 


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FG Shifting Focus to “Meaningful Connectivity” to Drive Inclusion  – Minister

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Bosun Tijani, minister of Communications, Innovation and Digital Economy, has said the government is shifting focus from expanding access to ensuring “meaningful connectivity” that drives economic growth and inclusion.

FG Shifting Focus to “Meaningful Connectivity” to Drive Inclusion  - Minister

Bosun Tijani, minister of Communications, Innovation and Digital Economy

The minister made the statement on Friday while addressing stakeholders at the inauguration of board members of the Universal Service Provision Fund (USPF) in Abuja.

He said that although Nigeria had made significant progress since the introduction of GSM services, millions of people, particularly in rural and underserved communities, remain either unconnected or unable to fully benefit from digital services.

Dr Tijani highlighted ongoing investments in digital infrastructure, including plans to deploy 90,000 kilometres of fibre optic network and nearly 4,000 telecom towers nationwide.

He said initiatives under the USPF had improved access through projects such as rural connectivity and digital facilities in schools but stressed that the next phase must prioritise effective usage.

“It is not enough to connect a community. We must ensure that schools can teach with digital tools and that small businesses can access market opportunities,” he said, citing a pilot project in the Kura community where connectivity has enhanced access to communication, education and healthcare.

Aminu Maida, executive vice chairman, Nigerian Communications Commission (NCC) also called for a shift towards meaningful connectivity, noting that while data usage had grown significantly, it remained concentrated in urban areas.

According to him, recent data shows that telecom usage has increased by about 160% over the past two years, largely driven by urban demand.

“When we drill down, we see that a lot of that growth is actually in urban centres. So, the gap between those who are not connected or not meaningfully connected is growing,” he said.

Dr Maida added that the trend underscored the need for the USPF board to intensify efforts to bridge both access and usage gaps across the country.

Both officials emphasised the importance of collaboration, sustainable investment models and improved digital literacy to ensure that connectivity translates into real economic benefits for Nigerians.

 

 


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Jury Finds Meta, Google Liable for Woman’s Social Media Addiction

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A jury in Los Angeles has found technology companies, Meta and Google liable for contributing to a young woman’s social media addiction, in a case being described as a landmark ruling.

Jury Finds Meta, Google Liable for Woman’s Social Media Addiction

The 20-year-old woman, identified only as Kaley, argued that she became addicted to Google’s YouTube and Meta’s Instagram from an early age due to their attention-driven design features.

According to her testimony, she began using YouTube at the age of six after downloading the app on her iPod Touch to watch videos about lip gloss and online games.

Kaley told the court that she joined Instagram at nine, bypassing parental restrictions put in place by her mother, and spent extended periods on social media.

The trial, which lasted about a month, with arguments and evidence from both sides.

Jurors also heard testimony from Mark Zuckerberg, chief executive, Meta and Adam Mosseri, Instagram head.

However, Neal Mohan, YouTube chief executive, did not testify.

The jury found that the companies were negligent in the design of their platforms and failed to adequately warn users about potential harms. Meta and Google were ordered to pay the woman $3 million in damages.

Jurors also recommended additional punitive damages, including $900,000 against YouTube and $2.1 million against Meta, according to company spokespersons.

The jury apportioned 70 per cent of the responsibility to Meta and 30 per cent to YouTube.

Kaley was present in the courtroom when the verdict was delivered, alongside parents of other teenagers who say they were harmed by social media use. Both companies said they plan to appeal the decision.

“We respectfully disagree with the verdict and will appeal. Teen mental health is profoundly complex and cannot be linked to a single app. We will continue to defend ourselves vigorously as every case is different, and we remain confident in our record of protecting teens online”, a Meta spokesperson said.

José Castañeda, Google spokesperson, said the case misunderstands YouTube, which is a responsibly built streaming platform, not a social media site.


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