Source: Africa Press Organisation – English (2) – Report:
JOHANNESBURG, South Africa, February 19, 2025/APO Group/ —
*The survey was conducted by Toluna research agency at the request of Kaspersky in 2023. The study sample included 10000 online interviews (5000 parent-child pairs, with children aged 3 to 17 years) in 5 countries: Türkiye, South Africa, Egypt, Saudi Arabia, and the UAE.
Source: GlobeNewswire (MIL-OSI)
PETAH-TIKVA, Israel, Feb. 19, 2025 (GLOBE NEWSWIRE) — Global-e Online Ltd. (Nasdaq: GLBE) the platform powering global direct-to-consumer e-commerce, today reported financial results for the fourth quarter of 2024 and full year 2024.
“2024 was yet another record-breaking year for Global-e, and it came to a great close with a fourth quarter which was our strongest quarter ever, as we continued to execute on our strategy and further solidify Global-e’s leadership position in the global e-commerce space,” said Amir Schlachet, Founder and CEO of Global-e. “In addition, we achieved two important financial milestones during the quarter. For the first time in our journey, we crossed the 20% Adjusted EBITDA Margin mark, which was the long-term target we set for ourselves at the IPO, and we reached GAAP profitability for the first time as a public company; a testament to our relentless focus on delivering fast yet durable growth.”
“As we head into 2025, we remain as committed as ever to continue on our growth path, deliver more cutting-edge and market-leading solutions to our merchants and seize more and more of the great opportunities that lie ahead of us in the world of global e-commerce. In 2025, we also expect to achieve three additional key financial milestones: surpass the 20% Adjusted EBITDA Margin mark on a full year basis, achieve annual GAAP profitability, and most importantly, for the first time, cross an annual run-rate of $1 billion in Revenues.”
Q4 2024 Financial Results
FY 2024 Financial Results
Recent Business Highlights
Q1 2025 and Full Year Outlook
Global-e is introducing first quarter and full year guidance as follows:
| Q12025 | FY 2025 | |||
| (in millions) | ||||
| GMV(1) | $1,210 – $1,250 | $6,190 – $6,490 | ||
| Revenue | $184.5 – $191.5 | $917 – $967 | ||
| Adjusted EBITDA(3) | $29.5 – $33.5 | $179 – $199 | ||
1 Gross Merchandise Value (GMV) is a key operating metric. See “Non-GAAP Financial Measures and Key Operating Metrics” for additional information regarding this metric.
2 Non-GAAP Gross profit and Non-GAAP gross margin are non-GAAP financial measures. See “Non-GAAP Financial Measures and Key Operating Metrics” for additional information regarding this metric.
3 Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information regarding this metric, including the reconciliations to Operating Profit (Loss), its most directly comparable GAAP financial measure. The Company is unable to provide a reconciliation of Adjusted EBITDA to Operating Profit (Loss), its most directly comparable GAAP financial measure, on a forward-looking basis without unreasonable effort because items that impact this GAAP financial measure are not within the Company’s control and/or cannot be reasonably predicted. These items may include, but are not limited to, share-based compensation expenses. Such information may have a significant, and potentially unpredictable impact on the Company’s future financial results.
Conference Call Information
Global-e will host a conference call at 8:00 a.m. ET on Wednesday, February 19, 2025.
The call will be available, live, to interested parties by dialing:
| United States/Canada Toll Free: | 1-800-717-1738 |
| International Toll: | 1-646-307-1865 |
A live webcast will also be available in the Investor Relations section of Global-e’s website at: https://investors.global-e.com/news-events/events-presentations
Approximately two hours after completion of the live call, an archived version of the webcast will be available on the Investor Relations section of the Company’s web site and will remain available for approximately 30 calendar days.
Non-GAAP Financial Measures and Key Operating Metrics
To supplement Global-e’s financial information presented in accordance with generally accepted accounting principles in the United States of America, or GAAP, Global-e considers certain financial measures and key performance metrics that are not prepared in accordance with GAAP including:
Global-e also uses Gross Merchandise Value (GMV) as a key operating metric. Gross Merchandise Value or GMV is defined as the combined amount we collect from the shopper and the merchant for all components of a given transaction, including products, duties and taxes and shipping.
The aforementioned key performance indicators and non-GAAP financial measures are used, in conjunction with GAAP measures, by management and our board of directors to assess our performance, including the preparation of Global-e’s annual operating budget and quarterly forecasts, for financial and operational decision-making, to evaluate the effectiveness of Global-e’s business strategies, and as a means to evaluate period-to-period comparisons. These measures are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We believe that these non-GAAP financial measures are appropriate measures of operating performance because they remove the impact of certain items that we believe do not directly reflect our core operations, and permit investors to view performance using the same tools that we use to budget, forecast, make operating and strategic decisions, and evaluate historical performance.
Global-e’s definition of Non-GAAP measures may differ from the definition used by other companies and therefore comparability may be limited. In addition, other companies may not publish these metrics or similar metrics. Furthermore, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Thus, Non-GAAP measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.
For more information on the non-GAAP financial measures, please see the reconciliation tables provided below. The accompanying reconciliation tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.
Cautionary Note Regarding Forward Looking Statements
This press release contains estimates and forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our future strategy and projected revenue, GMV, Adjusted EBITDA and other future financial and operational results, growth strategy and plans and objectives of management for future operations, including, among others, expansion in new and existing markets, the launch of large enterprise merchants, and our ongoing partnership with Shopify, are forward-looking statements. As the words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “target,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible” or the negative of these terms or other similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Global-e believes there is a reasonable basis for its expectations and beliefs, but they are inherently uncertain. Many factors could cause actual future events to differ materially from the forward-looking statements in this announcement, including but not limited to, our rapid growth and growth rates in recent periods may not be indicative of future growth; the ability to retain merchants or the GMV generated by such merchants; the ability to retain existing, and attract new merchants; our business acquisitions and ability to effectively integrate acquired businesses; our ability to anticipate merchant needs or develop or acquire new functionality or enhance our existing platforms to meet those needs; our ability to implement and use artificial intelligence and machine learning technologies successfully; our ability to compete in our industry; our reliance on third-parties, including our ability to realize the benefits of any strategic alliances, joint ventures, or partnership arrangements and to integrate our platforms with third-party platforms; our ability to develop or maintain the functionality of our platforms, including real or perceived errors, failures, vulnerabilities, or bugs in our platforms; our history of net losses; our ability to manage our growth and manage expansion into additional markets; increased attention to ESG matters and our ability to manage such matters; our ability to accommodate increased volumes during peak seasons and events; our ability to effectively expand our marketing and sales capabilities; our expectations regarding our revenue, expenses and operations; our ability to operate internationally; our reliance on third-party services, including third-party providers of cross-docking services and third-party data centers, in our platforms and services and harm to our reputation by our merchants’ or third-party service providers’ unethical business practices; our ability to adapt to changes in mobile devices, systems, applications, or web browsers that may degrade the functionality of our platforms; our operation as a merchant of record for sales conducted using our platform; regulatory requirements and additional fees related to payment transactions through our e-commerce platforms could be costly and difficult to comply with; compliance and third-party risks related to anti-money laundering, anti-corruption, anti-bribery, regulations, economic sanctions and export control laws and import regulations and restrictions; our business’s reliance on the personal importation model; our ability to securely store personal information of merchants and shoppers; increases in shipping rates; fluctuations in the exchange rate of foreign currencies has impacted and could continue to impact our results of operations; our ability to offer high quality support; our ability to expand the number of merchants using our platforms and increase our GMV and to enhance our reputation and awareness of our platforms; our dependency on the continued use of the internet for commerce; our ability to adapt to emerging or evolving regulatory developments, changing laws, regulations, standards and technological changes related to privacy, data protection, data security and machine learning technology and generative artificial intelligence evolves; the effect of the situation in Ukraine on our business, financial condition and results of operations; our role in the fulfilment chain of the merchants, which may cause third parties to confuse us with the merchants; our ability to establish and protect intellectual property rights; and our use of open-source software which may pose particular risks to our proprietary software technologies; our dependency on our executive officers and other key employees and our ability to hire and retain skilled key personnel, including our ability to enforce non-compete agreements we enter into with our employees; litigation for a variety of claims which we may be subject to; the adoption by merchants of a direct to consumer model; our anticipated cash needs and our estimates regarding our capital requirements and our needs for additional financing; our ability to maintain our corporate culture; our ability to maintain an effective system of disclosure controls and internal control over financial reporting; our ability to accurately estimate judgments relating to our critical accounting policies; changes in tax laws or regulations to which we are subject, including the enactment of legislation implementing changes in taxation of international business activities and the adoption of other corporate tax reform policies; requirements to collect sales or other taxes relating to the use of our platforms and services in jurisdictions where we have not historically done so; global events such as war, health pandemics, climate change, macroeconomic events and the recent economic slowdown; risks relating to our ordinary shares, including our share price, the concentration of our share ownership with insiders, our status as a foreign private issuer, provisions of Israeli law and our amended and restated articles of association and actions of activist shareholders; risks related to our incorporation and location in Israel, including risks related to the ongoing war and related hostilities; and the other risks and uncertainties described in Global-e’s Annual Report on Form 20-F for the year ended December 31, 2023, filed with the SEC on March 28, 2024 and other documents filed with or furnished by Global-e from time to time with the Securities and Exchange Commission (the “SEC”). The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.
About Global-E Online Ltd.
Global-e (Nasdaq: GLBE) is the world’s leading platform enabling and accelerating global, Direct-To-Consumer e-commerce. The chosen partner of over 1,000 brands and retailers across the United States, EMEA and APAC, Global-e makes selling internationally as simple as selling domestically. The company enables merchants to increase the conversion of international traffic into sales by offering online shoppers in over 200 destinations worldwide a seamless, localized shopping experience. Global-e’s end-to-end e-commerce solutions combine best-in-class localization capabilities, big-data best-practice business intelligence models, streamlined international logistics and vast global e-commerce experience, enabling international shoppers to buy seamlessly online and retailers to sell to, and from, anywhere in the world. For more information, please visit: www.global-e.com.
Investor Contact:
Erica Mannion or Mike Funari
Sapphire Investor Relations, LLC
IR@global-e.com
+1 617-542-6180
Press Contact:
Sarah Schloss
Headline Media
Globale@headline.media
+1 786-233-7684
| Global-E Online Ltd. CONSOLIDATED BALANCE SHEETS (In thousands) |
||||||||
| Period Ended | ||||||||
| December 31, | December 31, | |||||||
| 2023 | 2024 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 200,081 | $ | 250,773 | ||||
| Short-term deposits | 96,939 | 187,322 | ||||||
| Accounts receivable, net | 27,841 | 41,171 | ||||||
| Prepaid expenses and other current assets | 63,967 | 84,613 | ||||||
| Marketable securities | 20,403 | 36,345 | ||||||
| Funds receivable, including cash in banks | 111,232 | 122,984 | ||||||
| Total current assets | 520,463 | 723,208 | ||||||
| Property and equipment, net | 10,236 | 10,440 | ||||||
| Operating lease right-of-use assets | 23,052 | 24,429 | ||||||
| Long term deposits | 3,552 | 3,786 | ||||||
| Deferred contract acquisition costs, noncurrent | 2,668 | 3,787 | ||||||
| Other assets, noncurrent | 4,078 | 4,527 | ||||||
| Commercial agreement asset | 192,721 | 66,527 | ||||||
| Goodwill | 367,566 | 367,566 | ||||||
| Intangible assets | 78,024 | 59,212 | ||||||
| Total long-term assets | 681,897 | 540,274 | ||||||
| Total assets | $ | 1,202,360 | $ | 1,263,482 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 50,943 | $ | 79,559 | ||||
| Accrued expenses and other current liabilities | 107,306 | 141,551 | ||||||
| Funds payable to Customers | 111,232 | 122,984 | ||||||
| Short term operating lease liabilities | 4,031 | 4,347 | ||||||
| Total current liabilities | 273,512 | 348,441 | ||||||
| Long-term liabilities: | ||||||||
| Deferred tax liabilities | 6,507 | – | ||||||
| Long term operating lease liabilities | 19,291 | 20,510 | ||||||
| Other long-term liabilities | 1,071 | 1,098 | ||||||
| Total liabilities | $ | 300,381 | $ | 370,049 | ||||
| Shareholders’ deficit: | ||||||||
| Share capital and additional paid-in capital | 1,360,250 | 1,425,317 | ||||||
| Accumulated comprehensive income | (1,420 | ) | 515 | |||||
| Accumulated deficit | (456,851 | ) | (532,399 | ) | ||||
| Total shareholders’ (deficit) equity | 901,979 | 893,433 | ||||||
| Total liabilities and shareholders’ equity | $ | 1,202,360 | $ | 1,263,482 | ||||
| Global-E Online Ltd. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) |
||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||
| December 31, | December 31, | |||||||||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||||
| Revenue | $ | 185,401 | $ | 262,912 | $ | 569,946 | $ | 752,764 | ||||||||||
| Cost of revenue | 109,080 | 144,253 | 336,343 | 413,331 | ||||||||||||||
| Gross profit | 76,321 | 118,659 | 233,603 | 339,433 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Research and development | 25,169 | 28,284 | 97,568 | 105,487 | ||||||||||||||
| Sales and marketing | 58,756 | 70,936 | 217,035 | 250,661 | ||||||||||||||
| General and administrative | 15,451 | 14,257 | 56,059 | 51,213 | ||||||||||||||
| Total operating expenses, net | 99,376 | 113,477 | 370,662 | 407,361 | ||||||||||||||
| Operating profit (loss) | (23,055 | ) | 5,182 | (137,059 | ) | (67,928 | ) | |||||||||||
| Financial expenses (income), net | (5,010 | ) | 6,073 | (5,262 | ) | 11,465 | ||||||||||||
| Loss before income taxes | (18,045 | ) | (891 | ) | (131,797 | ) | (79,393 | ) | ||||||||||
| Income tax (benefit) expenses | 4,055 | (2,400 | ) | 2,008 | (3,845 | ) | ||||||||||||
| Net profit (loss) attributable to ordinary shareholders | $ | (22,100 | ) | $ | 1,509 | $ | (133,805 | ) | $ | (75,548 | ) | |||||||
| Net profit (loss) per share attributable to ordinary shareholders, basic | $ | (0.13 | ) | $ | 0.01 | $ | (0.81 | ) | $ | (0.45 | ) | |||||||
| Net profit (loss) per share attributable to ordinary shareholders, diluted | $ | (0.13 | ) | $ | 0.01 | $ | (0.81 | ) | $ | (0.45 | ) | |||||||
| Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic | 165,626,904 | 168,419,800 | 164,353,909 | 167,323,350 | ||||||||||||||
| Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, diluted | 165,626,904 | 175,674,929 | 164,353,909 | 167,323,350 | ||||||||||||||
| Global-E Online Ltd. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) |
|||||||||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||||||||
| 2023 | 2024 | 2023 | 2024 | ||||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||||||||||||
| Operating activities | |||||||||||||||||||||||||||||
| Net profit (loss) | $ | (22,100 | ) | $ | 1,509 | $ | (133,805 | ) | $ | (75,548 | ) | ||||||||||||||||||
| Adjustments to reconcile net profit (loss) to net cash provided by operating activities: | |||||||||||||||||||||||||||||
| Depreciation and amortization | 489 | 547 | 1,788 | 2,131 | |||||||||||||||||||||||||
| Share-based compensation expenses | 12,180 | 9,538 | 44,960 | 39,158 | |||||||||||||||||||||||||
| Commercial agreement asset | 37,433 | 37,433 | 150,451 | 148,594 | |||||||||||||||||||||||||
| Amortization of intangible assets | 5,091 | 4,402 | 20,434 | 18,812 | |||||||||||||||||||||||||
| Unrealized loss (gain) on foreign currency | (3,011 | ) | 3,554 | (1,901 | ) | 4,468 | |||||||||||||||||||||||
| Changes in accrued interest and exchange rate on short-term deposits | 72 | (1,373 | ) | (416 | ) | (1,329 | ) | ||||||||||||||||||||||
| Changes in accrued interest and exchange rate on long-term deposits | (144 | ) | 364 | (255 | ) | 200 | |||||||||||||||||||||||
| Accounts receivable | (14,390 | ) | 15,925 | (11,417 | ) | (13,330 | ) | ||||||||||||||||||||||
| Prepaid expenses and other assets | 61 | (24,164 | ) | (11,736 | ) | (18,019 | ) | ||||||||||||||||||||||
| Funds receivable | (9,038 | ) | 8,726 | (11,074 | ) | (3,205 | ) | ||||||||||||||||||||||
| Long-term receivables | (1,497 | ) | 51 | (339 | ) | 551 | |||||||||||||||||||||||
| Funds payable to customers | 40,817 | 2,564 | 33,107 | 11,752 | |||||||||||||||||||||||||
| Operating lease ROU assets | 786 | 991 | 3,230 | 3,691 | |||||||||||||||||||||||||
| Deferred contract acquisition costs | (772 | ) | (322 | ) | (1,207 | ) | (1,382 | ) | |||||||||||||||||||||
| Accounts payable | 18,438 | 37,176 | (1,277 | ) | 28,617 | ||||||||||||||||||||||||
| Accrued expenses and other liabilities | 25,345 | 35,945 | 30,625 | 34,272 | |||||||||||||||||||||||||
| Deferred taxes | 3,635 | (2,592 | ) | 120 | (6,507 | ) | |||||||||||||||||||||||
| Operating lease liabilities | 99 | (987 | ) | (3,067 | ) | (3,533 | ) | ||||||||||||||||||||||
| Net cash provided by operating activities | 93,494 | 129,287 | 108,222 | 169,393 | |||||||||||||||||||||||||
| Investing activities | |||||||||||||||||||||||||||||
| Investment in marketable securities | (851 | ) | (18,331 | ) | (3,728 | ) | (21,128 | ) | |||||||||||||||||||||
| Proceeds from marketable securities | – | 2,028 | 671 | 4,988 | |||||||||||||||||||||||||
| Investment in short-term deposits | (43,250 | ) | (77,848 | ) | (175,237 | ) | (269,601 | ) | |||||||||||||||||||||
| Proceeds from short-term deposits | 34,318 | 22,298 | 125,068 | 180,548 | |||||||||||||||||||||||||
| Purchases of long-term investments | (4 | ) | (307 | ) | (82 | ) | (1,459 | ) | |||||||||||||||||||||
| Proceeds from long-term deposits | 10 | 24 | 10 | 24 | |||||||||||||||||||||||||
| Purchases of property and equipment | (926 | ) | (482 | ) | (1,741) | (2,335 | ) | ||||||||||||||||||||||
| Net cash used in investing activities | (10,703 | ) | (72,618 | ) | (55,039 | ) | (108,963 | ) | |||||||||||||||||||||
| Financing activities | |||||||||||||||||||||||||||||
| Proceeds from exercise of Warrants to ordinary shares | – | 3 | 22 | 5 | |||||||||||||||||||||||||
| Proceeds from exercise of share options | 244 | 1,632 | 1,969 | 3,271 | |||||||||||||||||||||||||
| Net cash provided by financing activities | 244 | 1,635 | 1,991 | 3,276 | |||||||||||||||||||||||||
| Exchange rate differences on balances of cash, cash equivalents and restricted cash | 3,011 | (3,554 | ) | 1,901 | (4,468 | ) | |||||||||||||||||||||||
| Net Increase in cash, cash equivalents, and restricted cash | 86,046 | 54,750 | 57,075 | 59,238 | |||||||||||||||||||||||||
| Cash and cash equivalents and restricted cash—beginning of period | 182,551 | 273,086 | 211,522 | 268,597 | |||||||||||||||||||||||||
| Cash and cash equivalents and restricted cash—end of period | $ | 268,597 | $ | 327,835 | $ | 268,597 | $ | 327,835 | |||||||||||||||||||||
| Global-E Online Ltd. SELECTED OTHER DATA (In thousands) |
||||||||||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||||||||||||||||||
| Key performance metrics | ||||||||||||||||||||||||||||||||
| Gross Merchandise Value | 1,189,467 | 1,712,903 | 3,557,444 | 4,857,970 | ||||||||||||||||||||||||||||
| Adjusted EBITDA (a) | 35,178 | 57,102 | 92,735 | 140,767 | ||||||||||||||||||||||||||||
| Revenue by Category | ||||||||||||||||||||||||||||||||
| Service fees | 89,936 | 49 | % | 117,268 | 45 | % | 262,255 | 46 | % | 350,311 | 47 | % | ||||||||||||||||||||
| Fulfillment services | 95,465 | 51 | % | 145,644 | 55 | % | 307,692 | 54 | % | 402,453 | 53 | % | ||||||||||||||||||||
| Total revenue | $ | 185,401 | 100 | % | $ | 262,912 | 100 | % | $ | 569,946 | 100 | % | $ | 752,764 | 100 | % | ||||||||||||||||
| Revenue by merchant outbound region | ||||||||||||||||||||||||||||||||
| United States | 94,887 | 51 | % | 146,250 | 56 | % | 285,619 | 50 | % | 399,596 | 53 | % | ||||||||||||||||||||
| United Kingdom | 54,962 | 30 | % | 55,807 | 21 | % | 173,584 | 30 | % | 182,904 | 24 | % | ||||||||||||||||||||
| European Union | 29,421 | 16 | % | 44,469 | 17 | % | 92,566 | 16 | % | 125,547 | 17 | % | ||||||||||||||||||||
| Israel | 479 | 0 | % | 1,671 | 1 | % | 1,806 | 0 | % | 2,746 | 0 | % | ||||||||||||||||||||
| Other | 5,652 | 3 | % | 14,715 | 5 | % | 16,371 | 3 | % | 41,971 | 6 | % | ||||||||||||||||||||
| Total revenue | $ | 185,401 | 100 | % | $ | 262,912 | 100 | % | $ | 569,946 | 100 | % | $ | 752,764 | 100 | % | ||||||||||||||||
(a) See reconciliation to adjusted EBITDA table
| Global-E Online Ltd. RECONCILIATION TO Non-GAAP GROSS PROFIT (In thousands) |
||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| Gross Profit | 76,321 | 118,659 | 233,603 | 339,433 | ||||||||||||
| Amortization of acquired intangibles included in cost of revenue | 2,796 | 2,198 | 11,183 | 9,994 | ||||||||||||
| Non-GAAP gross profit | 79,117 | 120,857 | 244,786 | 349,427 | ||||||||||||
| Global-E Online Ltd. RECONCILIATION TO ADJUSTED EBITDA (In thousands) |
|||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | ||||||||||||||||
| 2023 | 2024 | 2023 | 2024 | ||||||||||||||
| (Unaudited) | |||||||||||||||||
| Operating profit (loss) | (23,055 | ) | 5,182 | (137,059 | ) | (67,928 | ) | ||||||||||
| (1) Stock-based compensation: | |||||||||||||||||
| Cost of revenue | 186 | 275 | 639 | 929 | |||||||||||||
| Research and development | 6,962 | 4,153 | 26,266 | 17,291 | |||||||||||||
| Selling and marketing | 1,238 | 1,528 | 4,259 | 5,836 | |||||||||||||
| General and administrative | 3,794 | 3,582 | 13,796 | 15,102 | |||||||||||||
| Total stock-based compensation | 12,180 | 9,538 | 44,960 | 39,158 | |||||||||||||
| (2) Depreciation and amortization | 489 | 547 | 1,788 | 2,131 | |||||||||||||
| (3) Commercial agreement asset amortization | 37,433 | 37,433 | 150,451 | 148,594 | |||||||||||||
| (4) Amortization of acquired intangibles | 5,091 | 4,402 | 20,434 | 18,812 | |||||||||||||
| (5) Merger related contingent consideration | 3,040 | – | 12,161 | – | |||||||||||||
| Adjusted EBITDA | 35,178 | 57,102 | 92,735 | 140,767 | |||||||||||||
| Global-E Online Ltd. RECONCILIATION TO FREE CASH FLOW (In thousands) |
||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| Net cash provided by operating activities | 93,434 | 129,287 | 108,222 | 169,393 | ||||||||||||
| Less: | ||||||||||||||||
| Purchase of property and equipment | (926 | ) | (482 | ) | (1,741 | ) | (2,335 | ) | ||||||||
| Free cash flow | 92,508 | 128,805 | 106,481 | 167,058 | ||||||||||||
Source: World Health Organisation
The emergency polio outbreak response in the Gaza Strip is continuing, with a mass vaccination campaign scheduled from 22 to 26 February 2025. The novel oral polio vaccine type 2 (nOPV2) will be administered to over 591 000 children under 10 years of age to protect them from polio. This campaign follows the recent detection of poliovirus in wastewater samples in Gaza, signaling ongoing circulation in the environment, putting children at risk.
Pockets of individuals with low or no immunity provide the virus an opportunity to continue spreading and potentially cause disease. The current environment in Gaza, including overcrowding in shelters and severely damaged water, sanitation, and hygiene infrastructure, which facilitates fecal-oral transmission, create ideal conditions for further spread of poliovirus. Extensive population movement consequent to the current ceasefire is likely to exacerbate the spread of poliovirus infection.
Two previous vaccination rounds in the Gaza Strip were successfully conducted in September and October 2024, reaching over 95% of the target. As poliovirus is found to remain in the environment, additional vaccination efforts are needed to reach every child and strengthen population immunity. The presence of the virus still poses a risk to children with low or no immunity, in Gaza and throughout the region.
In 2024, health workers faced significant challenges accessing certain areas of central, north and south Gaza, which required special coordination to enter during the conflict. In inaccessible areas such as Jabalia, Beit Lahiya, and Beit Hanoun, where humanitarian pauses for the vaccination campaign were not assured, approximately 7 000 children missed vaccination during the second round. The recent ceasefire means health workers have considerably better access now.
No additional polio cases have been reported since a ten-month-old child was paralyzed in August 2024, but the new environmental samples from Deir al Balah and Khan Younis, collected in December 2024 and January 2025, confirm poliovirus transmission. The strain detected is genetically linked to the poliovirus detected in the Gaza Strip in July 2024.
The upcoming vaccination campaign aims to reach all children under 10 years of age, including those previously missed, to close immunity gaps and end the outbreak. The use of the oral polio vaccine will help end this outbreak by preventing the spread of the virus. An additional polio vaccination round is planned to be implemented in April.
The campaign will be led by the Palestinian Ministry of Health and implemented with support from the World Health Organization (WHO), United Nations Children’s Fund (UNICEF), United Nations Relief and Works Agency for Palestine Refugees (UNRWA) and other partners.
Polio vaccines are safe and there is no maximum number of times a child should be vaccinated. Each dose gives additional protection which is needed during an active polio outbreak.
WHO, UNICEF, and partners welcome the recent ceasefire and urge for a lasting ceasefire that leads to long-term peace.
Source: United Kingdom – Executive Government & Departments
Mr Charles King has been appointed His Majesty’s Ambassador to the Federal Republic of Somalia.
Charles King
Mr Charles King has been appointed His Majesty’s Ambassador to the Federal Republic of Somalia in succession to Mr Michael Nithavrianakis MVO. Mr King will take up his appointment during May 2025.
Full name: Charles Nicholas King
| Year | Role |
|---|---|
| 2023 to 2024 | FCDO, Joint Head of Israel/OPTs Gaza Taskforce |
| 2020 to 2023 | FCDO, Head of Levant and North Africa Department and UK Special Representative for Syria |
| 2017 to 2020 | Paris, Counsellor, Foreign Policy and Strategic Affairs |
| 2015 to 2016 | FCO, Chief of Staff to Jonathan Powell, PM’s Special Representative for Libya |
| 2012 to 2015 | Istanbul, Head of Syria Office |
| 2010 to 2012 | FCO, Head of Afghanistan Reconciliation and Regional Team |
| 2009 to 2010 | Baghdad, Deputy Head of Political Section |
| 2008 to 2009 | Damascus, Second Secretary Political/Economic |
| 2007 to 2008 | Cairo, Arabic language training |
| 2006 to 2007 | FCO, Head of Africa/Middle East Consular Casework Team |
| 2004 to 2006 | FCO, Deputy Head of EU Accessions Bill Team and Desk Officer for Romania and Bulgaria |
| 2004 | Joined FCO |
Media enquiries
Email newsdesk@fcdo.gov.uk
Telephone 020 7008 3100
Contact the FCDO Communication Team via email (monitored 24 hours a day) in the first instance, and we will respond as soon as possible.
Published 19 February 2025
Source: GlobeNewswire (MIL-OSI)
All of the amounts disclosed in this press release are in U.S. dollars unless otherwise noted
TEL AVIV, Israel, Feb. 19, 2025 (GLOBE NEWSWIRE) — Enlight Renewable Energy Ltd. (NASDAQ: ENLT, TASE: ENLT) today reported financial results for the fourth quarter and full year ending December 31, 2024. The Company’s earnings conference call and webcast will be held today at 8:00 AM ET. Registration links to both the call and the webcast can be found at the end of this earnings release.
Financial Highlights
Full year 2024
3 months ending December 31, 2024
________________________
1 The Company is unable to provide a reconciliation of Adjusted EBITDA to Net Income on a forward-looking basis without unreasonable effort because items that impact this IFRS financial measure are not within the Company’s control and/or cannot be reasonably predicted. Please refer to the reconciliation table in Appendix 2
| For the twelve months ended | For the three months ended | |||||||||
| ($ millions) | 31/12/2024 | 31/12/2023 | % change | 31/12/2024 | 31/12/2023 | % change | ||||
| Revenue and Income | 399 | 261 | 53% | 104 | 77 | 35% | ||||
| Net Income | 67 | 98 | (32%) | 8 | 16 | (48%) | ||||
| Adjusted EBITDA | 289 | 194 | 49% | 65 | 50 | 31% | ||||
| Cash Flow from Operating Activities | 193 | 150 | 29% | 36 | 24 | 49% | ||||
2024 Guidance vs Actual Results
Revenues and Income and Adjusted EBITDA includes $21m of U.S. tax benefits
“We are proud to conclude 2024 with outstanding financial results that surpassed both our targets and analysts’ forecasts,” said Gilad Yavetz, CEO of Enlight Renewable Energy.
“Enlight continues to grow thanks to its diversified and innovative operations, spanning three continents and employing the three main technologies of the industry: solar, wind, and energy storage.
“The year 2025 represents another leap forward for us, as a massive capacity of 4.7 FGW – with a total investment of $5.5bn – will be under various stages of construction. Together with the Company’s operating portfolio, this will secure approximately 90% of the Company’s ambitious growth plan: to reach operating capacity of 8.6 FGW by the end of 2027. This plan will bring Enlight to an annual revenue rate of over $1bn by 2028, tripling the business in just three years.
“We expect that the average return on equity for the vast asset portfolio that will become operational by 2027 will exceed 15%. Our three-year growth plan is already reflected in our 2025 guidance: we project revenues and income in the range of $490-510 million and Adjusted EBITDA in the range of $360-380 million, a 25% increase.”
Portfolio Review
The full composition of the portfolio appears in the following table:
| Component | Status | FGW2 | Annual recurring revenues ($m)3 | ||
| Operating | Commercial operation | 3.0 | ~5004 | ||
| Under Construction | Under construction | 1.8 | ~175 | ||
| Pre-Construction | 0-12 months to start of construction | 3.8 | ~385 | ||
| Total Mature Portfolio | Mature | 8.6 | 1,060~ | ||
| Advanced Development | 13-24 months to start of construction | 7 | – | ||
| Development | 2+ years to start of construction | 14.7 | – | ||
| Total Portfolio | 30.2 | – | |||
________________________
2 FGW (Factored GW) is a consolidated metric combining generation and storage capacity into a uniform figure based on the ratio of construction costs. The company’s current weighted average construction cost ratio is 3.5 GWh of storage per 1 GW of generation: FGW = GW + GWh / 3.5
3 Does not include income from tax benefits for under construction and pre-construction projects.
4 Based on the midpoint of 2025 guidance.
Projected COD Timeline for the Mature Portfolio5
________________________
5 Additional projects currently classified in the Advanced Development portfolio are expected to reach commercial operation by 2027, however they are not included in this forecast
Mature Portfolio Components Expected to Generate Annualized Revenues of Over $1bn6
All the projects in the plan are expected to be completed by the end of 2027
________________________
6 The projection is based on 2025 guidance, and only includes additional revenue growth from the sale of electricity from projects under construction and in pre-construction status.
Financing Activities
2025 Guidance
Construction and commissioning
Financial guidance
________________________
7 Total revenues and income include revenues from the sale of electricity along with income from tax benefits from US projects amounting to $60m-80m.
8 EBITDA is a non-IFRS financial measure. The Company is unable to provide a reconciliation of EBITDA to Net Income on a forward-looking basis without unreasonable effort because items that impact this IFRS financial measure are not within the Company’s control and/or cannot be reasonably predicted. Please refer to the reconciliation table in Appendix 2.
Financial Results Analysis
| Revenue & Income by Segment | |||||||
| ($ thousands) | For the twelve months ended | For the three months ended | |||||
| Segment | 31/12/2024 | 31/12/2023 | Change % | 31/12/2024 | 31/12/2023 | Change % | |
| MENA | 155,693 | 67,687 | 130% | 34,086 | 20,738 | 64% | |
| Europe | 197,143 | 177,471 | 11% | 49,979 | 50,770 | (2%) | |
| U.S. | 36,608 | 7,712 | 375% | 17,894 | 3,571 | 401% | |
| Other | 9,351 | 8,270 | 13% | 2,143 | 2,009 | 7% | |
| Total Revenue & Income | 398,795 | 261,140 | 53% | 104,102 | 77,088 | 35% | |
Revenues & Income
In the fourth quarter of 2024, the Company’s total revenues and income increased to $104m, up from $77m last year, a growth rate of 35% year over year. This was composed of revenues from the sale of electricity, which rose 26% to $93m compared to $74m in the same period of 2023, as well as recognition of $11m in income from tax benefits, up 230% compared to $3m in 4Q23.
The Company benefited from the revenue contribution of newly operational projects. Since the fourth quarter of 2023, 650 MW and 1,600 MWh of projects were connected to the grid and began selling electricity, including seven of the Israel Solar and Storage Cluster units in Israel, Atrisco in the U.S, Pupin in Serbia, and Tapolca in Hungary. The most important increases in revenue from the sale of electricity originated at the Israel Solar and Storage Cluster, which added $9m, followed by Atrisco, which added $6m in. In total, new projects contributed $18m to revenues from the sale of electricity
Revenues and income were distributed between MENA, Europe, and the US, with 34% denominated in Israeli Shekel, 47% in Euros, and 18% denominated in US Dollars.
Net Income
In the fourth quarter, the Company’s net income amounted to $8m compared to $16m last year, a decrease of 48% year over year. In 4Q23 the Company recorded a $12m net profit stemming from the recalculation of earnout payments linked to the acquisition of Clenera. Adjusting for this figure, the net income in 4Q23 was $4m, implying year-on-year growth of 90%.
Adjusted EBITDA9
In the fourth quarter of 2024, the Company’s Adjusted EBITDA grew by 31% to $65m compared to $50m for the same period in 2023. The increase in Adjusted EBITDA was driven by the same factors that drove the increase in revenues and income, namely new projects and the recognition of higher amounts of tax benefits. This was offset by an additional $6m in higher operating expenses linked to new projects, while company overheads rose by $5m year-on-year.
________________________
9 Adjusted EBITDA is a non-IFRS measure. Please see the appendix of this presentation for a reconciliation to Net Income
Conference Call Information
Enlight plans to hold its Fourth Quarter 2024 Conference Call and Webcast on Wednesday, February 19, 2025 at 8:00 a.m. ET to review its financial results and business outlook. Management will deliver prepared remarks followed by a question-and-answer session. Participants can join by dial-in or webcast:
The press release with the financial results as well as the investor presentation materials will be accessible from the Company’s website prior to the conference call. Approximately one hour after completion of the live call, an archived version of the webcast will be available on the Company’s investor relations website at https://enlightenergy.co.il/info/investors/.
Supplemental Financial and Other Information
We intend to announce material information to the public through the Enlight investor relations website at https://enlightenergy.co.il/info/investors, SEC filings, press releases, public conference calls, and public webcasts. We use these channels to communicate with our investors, customers, and the public about our company, our offerings, and other issues. As such, we encourage investors, the media, and others to follow the channels listed above, and to review the information disclosed through such channels. Any updates to the list of disclosure channels through which we will announce information will be posted on the investor relations page of our website.
Non-IFRS Financial Measures
This release presents Adjusted EBITDA, a financial metric, which is provided as a complement to the results provided in accordance with the International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). A reconciliation of the non-IFRS financial information to the most directly comparable IFRS financial measure is provided in the accompanying tables found at the end of this release.
We define Adjusted EBITDA as net income (loss) plus depreciation and amortization, share based compensation, finance expenses, taxes on income and share in losses of equity accounted investees and minus finance income and non-recurring portions of other income, net. For the purposes of calculating Adjusted EBITDA, compensation for inadequate performance of goods and services procured by the Company are included in other income, net. Compensation for inadequate performance of goods and services reflects the profits the Company would have generated under regular operating conditions and is therefore included in Adjusted EBITDA. With respect to gains (losses) from asset disposals, as part of Enlight’s strategy to accelerate growth and reduce the need for equity financing, the Company sells parts of or the entirety of selected renewable project assets from time to time, and therefore includes realized gains or losses from these asset disposals in Adjusted EBITDA. In the case of partial assets disposals, Adjusted EBITDA includes only the actual consideration less the book value of the assets sold. Our management believes Adjusted EBITDA is indicative of operational performance and ongoing profitability and uses Adjusted EBITDA to evaluate the operating performance and for planning and forecasting purposes.
Non-IFRS financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under IFRS. There are a number of limitations related to the use of non-IFRS financial measures versus comparable financial measures determined under IFRS. For example, other companies in our industry may calculate the non-IFRS financial measures that we use differently or may use other measures to evaluate their performance. All of these limitations could reduce the usefulness of our non-IFRS financial measures as analytical tools. Investors are encouraged to review the related IFRS financial measure, Net Income, and the reconciliations of Adjusted EBITDA provided below to Net Income and to not rely on any single financial measure to evaluate our business.
Special Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding the Company’s business strategy and plans, capabilities of the Company’s project portfolio and achievement of operational objectives, market opportunity, utility demand and potential growth, discussions with commercial counterparties and financing sources, pricing trends for materials, progress of Company projects, including anticipated timing of related approvals and project completion and anticipated production delays, the Company’s future financial results, expected impact from various regulatory developments and anticipated trade sanctions, expectations regarding wind production, electricity prices and windfall taxes, and Revenues and Income and Adjusted EBITDA guidance, the expected timing of completion of our ongoing projects, and the Company’s anticipated cash requirements and financing plans , are forward-looking statements. The words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “target,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible,” “forecasts,” “aims” or the negative of these terms and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions.
These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: our ability to site suitable land for, and otherwise source, renewable energy projects and to successfully develop and convert them into Operational Projects; availability of, and access to, interconnection facilities and transmission systems; our ability to obtain and maintain governmental and other regulatory approvals and permits, including environmental approvals and permits; construction delays, operational delays and supply chain disruptions leading to increased cost of materials required for the construction of our projects, as well as cost overruns and delays related to disputes with contractors; disruptions in trade caused by political, social or economic instability in regions where our components and materials are made; our suppliers’ ability and willingness to perform both existing and future obligations; competition from traditional and renewable energy companies in developing renewable energy projects; potential slowed demand for renewable energy projects and our ability to enter into new offtake contracts on acceptable terms and prices as current offtake contracts expire; offtakers’ ability to terminate contracts or seek other remedies resulting from failure of our projects to meet development, operational or performance benchmarks; exposure to market prices in some of our offtake contracts; various technical and operational challenges leading to unplanned outages, reduced output, interconnection or termination issues; the dependence of our production and revenue on suitable meteorological and environmental conditions, and our ability to accurately predict such conditions; our ability to enforce warranties provided by our counterparties in the event that our projects do not perform as expected; government curtailment, energy price caps and other government actions that restrict or reduce the profitability of renewable energy production; electricity price volatility, unusual weather conditions (including the effects of climate change, could adversely affect wind and solar conditions), catastrophic weather-related or other damage to facilities, unscheduled generation outages, maintenance or repairs, unanticipated changes to availability due to higher demand, shortages, transportation problems or other developments, environmental incidents, or electric transmission system constraints and the possibility that we may not have adequate insurance to cover losses as a result of such hazards; our dependence on certain operational projects for a substantial portion of our cash flows; our ability to continue to grow our portfolio of projects through successful acquisitions; changes and advances in technology that impair or eliminate the competitive advantage of our projects or upsets the expectations underlying investments in our technologies; our ability to effectively anticipate and manage cost inflation, interest rate risk, currency exchange fluctuations and other macroeconomic conditions that impact our business; our ability to retain and attract key personnel; our ability to manage legal and regulatory compliance and litigation risk across our global corporate structure; our ability to protect our business from, and manage the impact of, cyber-attacks, disruptions and security incidents, as well as acts of terrorism or war; changes to existing renewable energy industry policies and regulations that present technical, regulatory and economic barriers to renewable energy projects; the reduction, elimination or expiration of government incentives or benefits for, or regulations mandating the use of, renewable energy; our ability to effectively manage the global expansion of the scale of our business operations; our ability to perform to expectations in our new line of business involving the construction of PV systems for municipalities in Israel; our ability to effectively manage our supply chain and comply with applicable regulations with respect to international trade relations, tariffs, sanctions, export controls and anti-bribery and anti-corruption laws; our ability to effectively comply with Environmental Health and Safety and other laws and regulations and receive and maintain all necessary licenses, permits and authorizations; our performance of various obligations under the terms of our indebtedness (and the indebtedness of our subsidiaries that we guarantee) and our ability to continue to secure project financing on attractive terms for our projects; limitations on our management rights and operational flexibility due to our use of tax equity arrangements; potential claims and disagreements with partners, investors and other counterparties that could reduce our right to cash flows generated by our projects; our ability to comply with increasingly complex tax laws of various jurisdictions in which we currently operate as well as the tax laws in jurisdictions in which we intend to operate in the future; the unknown effect of the dual listing of our ordinary shares on the price of our ordinary shares; various risks related to our incorporation and location in Israel, including the ongoing war in Israel, where our headquarters and some of our wind energy and solar energy projects are located; the costs and requirements of being a public company, including the diversion of management’s attention with respect to such requirements; certain provisions in our Articles of Association and certain applicable regulations that may delay or prevent a change of control; and other risk factors set forth in the section titled “Risk factors” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”), as may be updated in our other documents filed with or furnished to the SEC.
These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
About Enlight
Founded in 2008, Enlight develops, finances, constructs, owns, and operates utility-scale renewable energy projects. Enlight operates across the three largest renewable segments today: solar, wind and energy storage. A global platform, Enlight operates in the United States, Israel and 9 European countries. Enlight has been traded on the Tel Aviv Stock Exchange since 2010 (TASE: ENLT) and completed its U.S. IPO (Nasdaq: ENLT) in 2023.
Company Contacts
Yonah Weisz
Director IR
investors@enlightenergy.co.il
Erica Mannion or Mike Funari
Sapphire Investor Relations, LLC
+1 617 542 6180
investors@enlightenergy.co.il
Appendix 1 – Financial information
| Consolidated Statements of Income |
||||
| For the year ended at December 31 |
||||
| 2024 | 2023(*) |
|||
| USD in | USD in |
|||
| thousands | thousands |
|||
| Revenues | 377,935 | 255,702 | ||
| Tax benefits | 20,860 | 5,438 | ||
| Total revenues and income | 398,795 | 261,140 | ||
| Cost of sales (**) | (80,696) | (52,794) | ||
| Depreciation and amortization | (108,889) | (65,796) | ||
| General and administrative expenses | (38,847) | (31,356) | ||
| Development expenses | (11,601) | (6,347) | ||
| Total operating expenses | (240,033) | (156,293) | ||
| Gains from projects disposals | 601 | 9,846 | ||
| Other income, net | 16,172 | 43,450 | ||
| Operating profit | 175,535 | 158,143 | ||
| Finance income | 20,439 | 36,799 | ||
| Finance expenses | (107,844) | (68,143) | ||
| Total finance expenses, net | (87,405) | (31,344) | ||
| Profit before tax and equity loss | 88,130 | 126,799 | ||
| Share of loss of equity accounted investees | (3,350) | (330) | ||
| Profit before income taxes | 84,780 | 126,469 | ||
| Taxes on income | (18,275) | (28,428) | ||
| Profit for the year | 66,505 | 98,041 | ||
| Profit for the year attributed to: | ||||
| Owners of the Company | 44,209 | 70,924 | ||
| Non-controlling interests | 22,296 | 27,117 | ||
| 66,505 | 98,041 | |||
| Earnings per ordinary share (in USD) with a par value of | ||||
| NIS 0.1, attributable to owners of the parent Company: | ||||
| Basic earnings per share | 0.37 | 0.61 | ||
| Diluted earnings per share | 0.36 | 0.57 | ||
| Weighted average of share capital used in the | ||||
| calculation of earnings: | ||||
| Basic per share | 118,293,556 | 115,721,346 | ||
| Diluted per share | 123,312,565 | 123,861,293 | ||
(*) The Consolidated Statements of Income have been adjusted to present comparable information for the previous year. For additional details please see Appendix 8.
(**) Excluding depreciation and amortization
| Consolidated Statements of Financial Position as of | ||||
| December 31 | December 31 | |||
| 2024 | 2023 | |||
| USD in | USD in | |||
| Thousands | Thousands | |||
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | 387,427 | 403,805 | ||
| Deposits in banks | – | 5,308 | ||
| Restricted cash | 100,090 | 142,695 | ||
| Trade receivables | 50,692 | 43,100 | ||
| Other receivables | 99,651 | 60,691 | ||
| Current maturities of contract assets | – | 8,070 | ||
| Other financial assets | 975 | 976 | ||
| Assets of disposal groups classified as held for sale | 81,661 | – | ||
| Total current assets | 720,496 | 664,645 | ||
| Non-current assets | ||||
| Restricted cash | 48,251 | 38,891 | ||
| Other long-term receivables | 61,045 | 32,540 | ||
| Deferred costs in respect of projects | 357,358 | 271,424 | ||
| Deferred borrowing costs | 276 | 493 | ||
| Loans to investee entities | 18,112 | 35,878 | ||
| Contract assets | – | 91,346 | ||
| Fixed assets, net | 3,699,192 | 2,947,369 | ||
| Intangible assets, net | 291,442 | 287,961 | ||
| Deferred taxes assets | 10,744 | 9,134 | ||
| Right-of-use asset, net | 210,941 | 121,348 | ||
| Financial assets at fair value through profit or loss | 69,216 | 53,466 | ||
| Other financial assets | 59,812 | 79,426 | ||
| Total non-current assets | 4,826,389 | 3,969,276 | ||
| Total assets | 5,546,885 | 4,633,921 |
| Consolidated Statements of Financial Position as of (Cont.) | ||||
| December 31 | December 31 | |||
| 2024 | 2023 | |||
| USD in | USD in | |||
| Thousands | Thousands | |||
| Liabilities and equity | ||||
| Current liabilities | ||||
| Credit and current maturities of loans from | ||||
| banks and other financial institutions | 212,246 | 324,666 | ||
| Trade payables | 161,991 | 105,574 | ||
| Other payables | 107,825 | 103,622 | ||
| Current maturities of debentures | 44,962 | 26,233 | ||
| Current maturities of lease liability | 10,240 | 8,113 | ||
| Financial liabilities through profit or loss | – | 13,860 | ||
| Other financial liabilities | 8,141 | 1,224 | ||
| Liabilities of disposal groups classified as held for sale | 46,635 | – | ||
| Total current liabilities | 592,040 | 583,292 | ||
| Non-current liabilities | ||||
| Debentures | 433,994 | 293,751 | ||
| Other financial liabilities | 107,865 | 62,020 | ||
| Convertible debentures | 133,056 | 130,566 | ||
| Loans from banks and other financial institutions | 1,996,137 | 1,702,925 | ||
| Loans from non-controlling interests | 75,598 | 92,750 | ||
| Financial liabilities through profit or loss | 25,844 | 34,524 | ||
| Deferred taxes liabilities | 41,792 | 44,941 | ||
| Employee benefits | 1,215 | 4,784 | ||
| Lease liability | 211,941 | 119,484 | ||
| Deferred income related to tax equity | 403,384 | 60,880 | ||
| Asset retirement obligation | 83,085 | 68,047 | ||
| Total non-current liabilities | 3,513,911 | 2,614,672 | ||
| Total liabilities | 4,105,951 | 3,197,964 | ||
| Equity | ||||
| Ordinary share capital | 3,308 | 3,293 | ||
| Share premium | 1,028,532 | 1,028,532 | ||
| Capital reserves | 25,273 | 57,730 | ||
| Proceeds on account of convertible options | 15,494 | 15,494 | ||
| Accumulated profit | 107,919 | 63,710 | ||
| Equity attributable to shareholders of the Company | 1,180,526 | 1,168,759 | ||
| Non-controlling interests | 260,408 | 267,198 | ||
| Total equity | 1,440,934 | 1,435,957 | ||
| Total liabilities and equity | 5,546,885 | 4,633,921 | ||
| Consolidated Statements of Cash Flows | ||
| For the year ended at December 31 |
||
| 2024 | 2023 | |
| USD in | USD in | |
| Thousands | Thousands | |
| Cash flows for operating activities | ||
| Profit for the period | 66,505 | 98,041 |
| Income and expenses not associated with cash flows: | ||
| Depreciation and amortization | 108,889 | 65,796 |
| Finance expenses, net | 83,560 | 28,805 |
| Share-based compensation | 8,360 | 4,970 |
| Taxes on income | 18,275 | 28,428 |
| Tax benefits | (20,860) | (5,438) |
| Other income, net | (4,963) | (46,991) |
| Company’s share in losses of investee partnerships | 3,350 | 330 |
| 196,611 | 75,900 | |
| Changes in assets and liabilities items: | ||
| Change in other receivables | 12,261 | (3,241) |
| Change in trade receivables | (9,892) | (2,841) |
| Change in other payables | 294 | 6,382 |
| Change in trade payables | 746 | 15,474 |
| 3,409 | 15,774 | |
| Interest receipts | 12,684 | 12,490 |
| Interest paid | (74,891) | (54,469) |
| Income Tax paid | (11,246) | (12,236) |
| Repayment of contract assets | – | 14,120 |
| Net cash from operating activities | 193,072 | 149,620 |
| Cash flows for investing activities | ||
| Sale (Acquisition) of consolidated entities, net | 1,871 | (6,975) |
| Changes in restricted cash and bank deposits, net | 29,959 | (53,131) |
| Purchase, development, and construction in respect of projects | (899,257) | (730,976) |
| Loans provided and Investment in investees | (26,444) | (28,174) |
| Payments on account of acquisition of consolidated entity | (32,777) | (5,728) |
| Proceeds from sale (purchase) of financial assets measured at fair value | ||
| through profit or loss, net | (14,719) | 26,919 |
| Net cash used in investing activities | (941,367) | (798,065) |
| Consolidated Statements of Cash Flows (Cont.) | |||
| For the year ended at December 31 |
|||
| 2024 | 2023 | ||
| USD in | USD in | ||
| Thousands | Thousands | ||
| Cash flows from financing activities | |||
| Receipt of loans from banks and other financial institutions | 939,627 | 623,927 | |
| Repayment of loans from banks and other financial institutions | (699,586) | (203,499) | |
| Issuance of debentures | 177,914 | 83,038 | |
| Repayment of debentures | (26,016) | (14,735) | |
| Dividends and distributions by subsidiaries to non-controlling interests | (25,534) | (13,328) | |
| Proceeds from investments by tax-equity investors | 410,845 | 198,758 | |
| Repayment of tax equity investment | (839) | (82,721) | |
| Deferred borrowing costs | (21,637) | (1,984) | |
| Receipt of loans from non-controlling interests | – | 274 | |
| Repayment of loans from non-controlling interests | (2,960) | (1,485) | |
| Increase in holding rights of consolidated entity | (169) | – | |
| Issuance of shares | – | 266,451 | |
| Exercise of share options | 15 | 9 | |
| Repayment of lease liability | (5,852) | (4,848) | |
| Proceeds from investment in entities by non-controlling interest | 179 | 5,448 | |
| Net cash from financing activities | 745,987 | 855,305 | |
| Increase (Decrease) in cash and cash equivalents | (2,308) | 206,860 | |
| Balance of cash and cash equivalents at beginning of period | 403,805 | 193,869 | |
| Changes in cash of disposal groups classified as held for sale | (5,753) | – | |
| Effect of exchange rate fluctuations on cash and cash equivalents | (8,317) | 3,076 | |
| Cash and cash equivalents at end of period | 387,427 | 403,805 | |
Information related to Segmental Reporting
| For the year ended December 31, 2024 | |||||||||||
| MENA(**) | Europe(**) | USA | Total reportable segments | Others | Total | ||||||
| USD in thousands | |||||||||||
| Revenues | 155,693 | 197,143 | 15,748 | 368,584 | 9,351 | 377,935 | |||||
| Tax benefits | – | – | 20,860 | 20,860 | – | 20,860 | |||||
| Total revenues and income | 155,693 | 197,143 | 36,608 | 389,444 | 9,351 | 377,935 | |||||
| Segment adjusted EBITDA | 123,724 | 165,385 | 33,539 | 322,648 | 4,141 | 326,789 | |||||
| Reconciliations of unallocated amounts: | |||||||||||
| Headquarter costs (*) | (37,774) | ||||||||||
| Intersegment profit | 100 | ||||||||||
| Depreciation and amortization and share-based compensation | (117,249) | ||||||||||
| Other incomes not attributed to segments | 3,669 | ||||||||||
| Operating profit | 175,535 | ||||||||||
| Finance income | 20,439 | ||||||||||
| Finance expenses | (107,844) | ||||||||||
| Share in the losses of equity accounted investees | (3,350) | ||||||||||
| Profit before income taxes | 84,780 | ||||||||||
(*) Including general and administrative and development expenses (excluding depreciation and amortization and share based compensation).
(**) Due to the Company’s organizational restructuring, the Chief Operation Decision Maker (CODM) now reviews the group’s results by segmenting them into four business units: MENA (Middle East and North Africa), Europe, the US, and Management and Construction. Consequently, the Central/Eastern Europe and Western Europe segments have been consolidated into the “Europe” segment, and the Israel segment has been incorporated into the MENA segment. The comparative figures for the year ended December 31, 2023, have been updated accordingly.
Information related to Segmental Reporting
| For the year ended December 31, 2023 | |||||||||||
| MENA | Europe | USA | Total reportable segments | Others | Total | ||||||
| USD in thousands | |||||||||||
| Revenues | 67,687 | 177,471 | 2,274 | 247,432 | 8,270 | 255,702 | |||||
| Tax benefits | – | – | 5,438 | 5,438 | – | 5,438 | |||||
| Total revenues and income | 67,687 | 177,471 | 7,712 | 252,870 | 8,270 | 261,140 | |||||
| Segment adjusted EBITDA | 71,350 | 150,677 | 12,133 | 234,160 | 3,035 | 237,195 | |||||
| Reconciliations of unallocated amounts: | |||||||||||
| Headquarter costs (*) | (30,434) | ||||||||||
| Intersegment profit | 1,587 | ||||||||||
| Repayment of contract asset under concession arrangements | (14,120) | ||||||||||
| Depreciation and amortization and share-based compensation | (70,766) | ||||||||||
| Other incomes not attributed to segments | 34,681 | ||||||||||
| Operating profit | 158,143 | ||||||||||
| Finance income | 36,799 | ||||||||||
| Finance expenses | (68,143) | ||||||||||
| Share in the losses of equity accounted investees | (330) | ||||||||||
| Profit before income taxes | 126,469 | ||||||||||
(*) Including general and administrative and development expenses (excluding depreciation and amortization and share based compensation).
Appendix 2 – Reconciliations between Net Income to Adjusted EBITDA
| ($ thousands) | For the year ended | For the three months | |||||||
| December 31 | ended December 31 | ||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||
| Net Income (loss) | 66,505 | 98,041 | 8,372 | 16,202 | |||||
| Depreciation and amortization | 108,889 | 65,796 | 30,912 | 21,611 | |||||
| Share based compensation | 8,360 | 4,970 | 2,333 | 970 | |||||
| Finance income | (20,439) | (36,799) | (2,140) | 7,581 | |||||
| Finance expenses | 107,844 | 68,143 | 22,008 | 16,344 | |||||
| Non-recurring other income (*) | (3,669) | (34,681) | – | (15,718) | |||||
| Share of losses of equity accounted investees | 3,350 | 330 | 1,613 | (137) | |||||
| Taxes on income | 18,275 | 28,428 | 2,121 | 2,934 | |||||
| Adjusted EBITDA | 289,115 | 194,228 | 65,219 | 49,787 | |||||
| * For the purposes of calculating Adjusted EBITDA, compensation for inadequate performance of goods and services procured by the Company are included in other income, net. | |||||||||
The Company has changed its presentation of its Income Statement, which includes the presentation of specified items that have been previously included within other income (i.e. tax equity). The Company believes that such presentation provides a more relevant information and better reflects the measurement of its financial performance. The Company applied such change retrospectively.
Appendix 3 – Debentures Covenants
Debentures Covenants
As of December 31, 2024, the Company was in compliance with all of its financial covenants under the indenture for the Series C-F Debentures, based on having achieved the following in its consolidated financial results:
Minimum equity
The company’s equity shall be maintained at no less than NIS 200 million so long as debentures E remain outstanding, no less than NIS 375 million so long as debentures F remain outstanding, and NIS 1,250 million so long as debentures C and D remain outstanding.
As of December 31, 2024, the company’s equity amounted to NIS 5,255 million.
Net financial debt to net CAP
The ratio of standalone net financial debt to net CAP shall not exceed 70% for two consecutive financial periods so long as debentures E and F remain outstanding, and shall not exceed 65% for two consecutive financial periods so long as debentures C and D remain outstanding.
As of December 31, 2024, the net financial debt to net CAP ratio, as defined above, stands at 37%.
Net financial debt to EBITDA
So long as debentures E and F remain outstanding, standalone financial debt shall not exceed NIS 10 million, and the consolidated financial debt to EBITDA ratio shall not exceed 18 for more than two consecutive financial periods.
For as long as debentures C and D remain outstanding, the consolidated financial debt to EBITDA ratio shall not exceed 15 for more than two consecutive financial periods.
As of December 31, 2024, the net financial debt to EBITDA ratio, as defined above, stands at 9.
Equity to balance sheet
The standalone equity to total balance sheet ratio shall be maintained at no less than 20% and 25%, respectively, for two consecutive financial periods for as long as debentures E and F, and debentures C and D remain outstanding.
As of December 31, 2024, the equity to balance sheet ratio, as defined above, stands at 55%.
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/16dfdaab-3b06-4494-a529-7e4b98cd6ad8
https://www.globenewswire.com/NewsRoom/AttachmentNg/a4d568ee-77b0-4eab-b7ef-c865a4a26d0e
https://www.globenewswire.com/NewsRoom/AttachmentNg/ae07b0d5-09c7-404f-a71d-70494b2b64ca
Source: GlobeNewswire (MIL-OSI)
LONDON, Feb. 19, 2025 (GLOBE NEWSWIRE) —
Level2 and Broctagon Partner to Bring No-Code Automated Trading to Brokers Using AXIS CRM
This innovative collaboration aims to simplify the strategy creation process for brokers and all their traders currently using Broctagon’s AXIS CRM platform.
Level2’s intuitive no-code EA solution allows traders of all experience levels to easily create, deploy, and automate strategies using a fully visual, drag-and-drop approach. This no-code approach eliminates the need for technical expertise, enabling traders to configure strategies, analyse performance, and execute trades with ease. By integrating Level2’s capabilities, brokers utilising Broctagon’s AXIS CRM – known for its multi-tier IB module, prop trading features, and API app marketplace – will now be able to offer their traders cutting-edge automated trading tools that drive engagement and unlock greater market potential.
Key Features for Active Traders:
“Broctagon is a forward-thinking organisation that prioritises innovation. Through this partnership, we’ve created a solution that will make technical analysis and fully automated trading more accessible than ever before, giving Axis CRM brokers a competitive edge to captivate traders and drive demand” — Andrew Grevett, Co-founder & CEO of Level2. “Algorithmic trading has traditionally been reserved for those with coding expertise, creating a barrier for many traders. Level2’s no-code EA builder removes that barrier, revolutionising the way traders of all skill levels access and implement automated strategies. By partnering with Level2, Broctagon reinforces its commitment to innovation, empowering all AXIS FX CRM brokers with cutting-edge automation tools that drive engagement, retention, and trading volume” — Don Guo, Founder & CEO of Broctagon
About Level2
Level2 is a pioneering technology company focused on transforming the way active traders engage with financial markets. Through its intuitive, fully visual platform, Level2 simplifies strategy creation and automation for traders of all experience levels, eliminating the need for complex coding or technical expertise. With a commitment to innovation and accessibility, Level2 is helping shape the future of active trading by making professional-grade tools available to a broader audience, driving smarter, more efficient trading.
About Broctagon Fintech Group
Broctagon Fintech Group is a leading multi-asset liquidity and FX technology provider headquartered in Singapore, with over 15 years of global presence in Hong Kong, Malaysia, India, Cyprus, Thailand, and China. We specialize in performance-driven, bespoke solutions, serving over 350 clients in more than 50 countries with our liquidity aggregator technology, brokerage and prop trading solutions, and enterprise blockchain development.
Users can experience Level2 now or contact us to arrange a personalised demonstration.
Contact
Co-founder & CEO
Andrew Grevett
Level2
andrew@trylevel2.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fe7bd9b0-2951-46f0-b696-453b6ae50c34
Source: GlobeNewswire (MIL-OSI)
FAMAGUSTA, Cyprus, Feb. 19, 2025 (GLOBE NEWSWIRE) — Taitiko, the emerging leader in Web3 gaming, is poised to make a major announcement today, unveiling the upcoming launch of real-money competitions on its popular Taitiko ARENA platform. With over 100,000 active users already engaged in skill-based mini-games via Telegram, the introduction of real-money competitions will elevate the gaming experience, offering players the opportunity to earn tangible rewards in exchange for their skills and achievements.
This milestone is part of Taitiko’s ongoing strategy to create a sustainable, player-centric ecosystem within the Web3 space. “We’re committed to prioritizing genuine player engagement and innovation, not just speculative tokenomics,” said Alex Pei Fresneda, spokesperson for Taitiko. “The new real-money competitions will enhance the fun and competition in our platform while ensuring that users can benefit directly from their gaming experience.”
A New Era for Taitiko ARENA
As part of Taitiko’s broader vision, the integration of real-money competitions will provide a dynamic new avenue for players to showcase their abilities and compete against a global community. The update, set for release in the coming weeks, will enhance the user experience by adding financial stakes to the already competitive and skill-driven environment of Taitiko ARENA.
“We want to give players an opportunity to turn their skills into real rewards,” Fresneda added. “This update is just the beginning of a series of exciting developments for Taitiko in 2025.”
Strengthening Industry Position
Taitiko’s growth is fueled by its strategic partnerships with prominent entities such as DEXTools, Tonstation Games, SidusPad, and Decubate. These collaborations have enhanced Taitiko’s technological capabilities and broadened its reach within the blockchain and gaming communities, setting the stage for further expansion.
Additionally, the ongoing development of Taitiko Party, a multiplayer desktop game for both Windows and Mac, is progressing at full speed, with the game nearing completion at 80%. Taitiko’s upcoming token launch and plans for a year-long NFT collection further underscore its commitment to delivering both immersive experiences and long-term growth in the Web3 gaming space.
About Taitiko
Taitiko is at the forefront of revolutionizing the gaming industry with its innovative approach to Web3 gaming, focusing on player engagement, strategic partnerships, and a sustainable business model. With a growing user base and a clear roadmap, Taitiko aims to lead the next wave of blockchain-powered gaming experiences.
For more information on Taitiko, visit Taitiko.com.
Media Contact:
Alex Pei Fresneda
info@taitiko.com
Taitiko Official Website
Taitiko on X
Taitiko on Telegram
Disclaimer: This content is provided by Taitiko. The statements, views, and opinions expressed in this content are solely those of the sponsor and do not necessarily reflect the views of this media platform. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. This content is for informational purposes only and should not be considered as financial, investment, or trading advice. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before investing in or trading cryptocurrency and securities. Please conduct your own research and invest at your own risk.
Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/9ac8e0b1-58f1-4721-bee1-cb461d9f6966
https://www.globenewswire.com/NewsRoom/AttachmentNg/fc3dad94-8f4b-4788-8381-a9feac2b9e9f
Source: Securelist – Kaspersky
Headline: Spam and phishing in 2024
In 2024, cybercriminals targeted travel enthusiasts using fake hotel and airline booking websites. In one simple scheme, a fraudulent site asked users to enter their login credentials to complete their booking — these credentials ended up in criminal hands. Sometimes, the fake login form appeared under multiple brand names at once (for example, both Booking and Airbnb).
Another scheme involved a more sophisticated fake site, where users could even select the purpose of their trip (business or leisure). To complete the booking, the scammers requested bank card details, claiming that a certain sum would be temporarily blocked on the account to verify the card’s authenticity. Legitimate booking services regularly request payment details, so the victim may not suspect anything in this case. To rush users into entering their data carelessly, on the phishing page, the scammers displayed warnings about dwindling accommodation availability and an imminent payment deadline for the booking. If the victim entered their data, the funds were not frozen but went straight into the criminals’ pockets.
Cyberthreats in the travel sector affected not only tourists but also employees of travel agencies. By gaining access to a corporate account, criminals could conduct financial transactions on behalf of employees and gain access to large customer databases.
Fake accommodation sites often sent messages to property owners, telling them to log in to “manage their property.” This scheme targeted people renting out their homes through online booking platforms.
Other scam pages featured surveys, offering respondents gifts or prize draws for participating. In this case, victims risked both their credentials and their money. Such fake giveaways are a classic scam tactic. They are often timed to coincide with a significant date for the travel industry or a specific company. For example, the screenshot below shows an offer to take part in a giveaway of airline tickets to celebrate Ryanair’s birthday.
After completing the survey, users may be asked to share the offer with a certain number of contacts, and then pay a small fee to receive the expensive gift. Of course, these prizes are non-existent.
To steal credentials for social media and messenger accounts, scammers used another classic technique: asking users to verify themselves. In one scheme, the victim was redirected to a website that completely replicated WhatsApp’s design. The user entered their phone number and login code, handing their credentials straight over to the cybercriminals.
Beyond verification scams, fraudsters also lured victims with attractive offers. For example, in the screenshot below, the victim is promised free Instagram followers.
Some cybercriminals also used the promise of adult content to lure victims into entering their credentials in a fake authorization form.
Other scammers took advantage of Facebook and Instagram being owned by the same company. On a fraudulent page, they claimed to offer a service that allowed users to find Instagram profiles by entering their Facebook login and password.
Some scams offered users a surprise “gift” — a free Telegram Premium subscription. To enable the messenger’s premium features, the victim only had to enter their phone number and a one-time code on a fraudulent website.
Some fake social media and messenger pages were designed not to steal login credentials but to install malware on victims’ devices. Taking advantage of the popularity of Facebook Lite for Android, scammers offered users a “more advanced official version”, claiming it had extra features missing in the original app. However, instead of an upgraded app, users downloaded malware onto their devices.
Similarly, installing a supposedly free Telegram client with an activated Premium subscription often led to downloading malware.
Social media business services were increasingly used as a pretext for credential theft, as they play a key role in developing and promoting businesses and are directly linked to financial operations. Cybercriminals tricked Telegram channel owners into logging in to a phishing platform imitating the official Telegram Ads tool, thereby stealing their Telegram credentials. To make the scam more convincing, the attackers detailed how Telegram advertising works and promised millions of ad views per month.
TikTok users have also been targeted. TikTok Shop allows sellers to list curated products—items featured in videos—for potential buyers to find and purchase. Scammers created fake TikTok Shop pages to steal seller credentials, potentially leading to both reputational and financial damage.
In another case, fraudsters informed Facebook fan page owners of unusual activity in their accounts. Potential victims were prompted to check their profile by entering their login credentials into a phishing form.
One of last year’s most sensational stories was the cryptocurrency game Hamster Kombat. This clicker game, simulating the creation of a crypto exchange in a gamified format, quickly attracted a massive audience. Players eagerly awaited the moment when the in-game coins could be exchanged for real virtual currency. But while the official listing was delayed, the fraudulent schemes wasted no time.
Fraudsters claimed to offer cash-out services for in-game coins by converting them into rubles. To withdraw money, criminals claimed, users just had to log in through a fake Telegram page.
The growing anticipation for the new cryptocurrency’s market launch was frequently exploited by cybercriminals to steal seed phrases from crypto wallets. Scammers announced an early token sale, requiring users to log in through a fake page to participate. Of course, there was no mention of such promotions on official resources.
The popularity of Hamster Kombat was also abused in scam schemes. For example, users were offered access to a crypto wallet supposedly containing a significant sum in virtual coins. To claim it, the unsuspecting victims had to share information about the “opportunity” with a certain number of contacts in messaging apps. Having made their potential victim an accomplice in spreading false information, the scammers demanded a small commission for the withdrawal and disappeared with the stolen money.
A more elaborate scam also aimed to trick users into paying a “commission”, but with a slightly different approach. First, visitors to the page were asked to register to learn about some new activity related to Hamster Kombat.
Once registered, they were suddenly informed of having won a large amount of the HMSTR cryptocurrency supposedly as part of an experiment conducted on the platform. Exploiting uncertainty around the token’s listing, scammers urged victims to bypass the official trading launch and exchange their in-game currency for Bitcoin immediately.
To make it more convincing, the page displayed an exchange rate at which the “prize” would be converted.
However, after clicking the “Exchange coins” button, users were prompted to pay a commission for the service.
Everyone who paid this fee lost their money and received no Bitcoin.
Phishing attacks also targeted TON wallet users. In this case, scammers lured victims with promises of bonuses, requiring them to link their crypto wallets on fraudulent websites.
TON cryptocurrency was also used as bait in scam schemes. In a classic scenario, users were promised a quick way to earn digital currency. Fraudsters advertised a cloud mining service that allegedly generated high profits without any effort. After registering, unsuspecting users could monitor their “earnings” but had to pay a commission in cryptocurrency to withdraw funds.
Another “profitable” crypto scam resembled a Ponzi scheme: victims were required to recruit at least five new participants into the program—without receiving any money, of course. The scam site mimicked an online earning platform.
Visitors were instructed to install Telegram and use an unofficial bot to activate a crypto wallet where profits would supposedly be deposited.
According to the instructions, users then had to buy Toncoin and register in the program through a referral link from another participant. The scam worked by enticing people to make a small investment in the hopes of making big profits—the victims used their own funds to purchase the cryptocurrency for registration. But as with any pyramid scheme, only those at the top profited, while everyone else was left with nothing but empty dreams.
Victims of phishing frequently included bank clients and users of government service portals. In such schemes, users first received a notification that they needed to update their account credentials. Cybercriminals used various communication channels to contact their victims: email, text messages, and chats in messaging apps. The victims were then led to fake sites where they were asked to provide their personal data. First, they entered their personal login credentials on the organization’s website.
Next, they were prompted to provide their email account credentials. The scammers also attempted to collect identity document details and other data, including the bank card PIN code.
Additionally, these phishing forms requested answers to security questions commonly used for additional verification in banking transactions.
This way, the cybercriminals gained full access to the victim’s account. Even the PIN code could be useful for the scammers in gaining access to the account. Security questions served as an extra safeguard for fraudsters in case the bank’s security service detected suspicious activity.
Phishing schemes also exploited the images of real people. For example, users browsing YouTube could stumble upon ad videos of celebrities announcing giveaways for their fans. Clicking the link in such a video led users to a page containing a post supposedly from the celebrity’s social media account, explaining how to claim the prize. However, when attempting to collect the “winnings”, visitors were asked to pay a small commission—insignificant compared to the value of the “gift.” Needless to say, those who paid the fee lost their money. The prize never existed, and the video was nothing more than a deepfake.
Throughout the year, we frequently encountered emails announcing fake cryptocurrency airdrops, allegedly from teams of well-known crypto projects. The recipients, referred to as the platform’s “most valuable users,” were invited to participate in an “exclusive” event as a thank you for their loyalty and exceptional engagement.
New users unfamiliar with cryptocurrency were lured in with a unique opportunity to take part in the token giveaway and win a large sum—all they had to do was register on the platform, which was, of course, fake.
Scammers in 2024 closely monitored cryptocurrency market news. For example, in the spring, ahead of Notcoin’s upcoming listing, scam messages appeared featuring countdown timers, urging potential victims to participate in an airdrop allegedly arranged just for them.
Scam emails also targeted users of the cryptocurrency game Hamster Kombat, popular among Russian-speakers. Players eagerly awaited the HMSTR token listing, which was repeatedly postponed—a delay that scammers were quick to exploit. In the fall of 2024, they began sending emails pretending to be from the Hamster Kombat team, promising generous cash prizes if victims clicked a link to a fake game site.
Similar offers were distributed via a fraudulent website mimicking a major cryptocurrency exchange. In both cases, to claim the coveted tokens, victims had to link their cryptocurrency wallets.
In 2024, the Nigerian scam remained popular among spammers. Furthermore, fraudsters used both time-tested and trending themes to deceive victims. Cybercriminals employed various tricks and manipulations to engage with email recipients, with the ultimate goal of extracting money.
Most often, users were lured into classic schemes: fraudsters posed as terminally ill wealthy individuals seeking a worthy heir, lottery winners eager to share their prize, or investors offering opportunities in a promising business. Sometimes, to evade suspicion, scammers “rescued” their victims from other fraudsters and offered to compensate them for any financial losses. For example, in the summer of 2024, we came across an interesting case where an alleged victim of crypto fraud suggested that fellow sufferers contact a group of noble hackers for help recovering lost cryptocurrency.
Some scam offers were quite unexpected, as they didn’t promise vast riches, and, therefore, might not attract such a wide audience. In mid-to-late 2024, we saw scam emails claiming to be looking for new owners for pianos due to relocation or the previous owner’s passing.
We also encountered even more creative scam narratives. For example, an email allegedly sent from a secret society of Illuminati promising to share their wealth, power and fame if the recipients agree to join their grand brotherhood.
Other “Nigerian” scam emails capitalized on current news events. Thus, the most talked-about event of 2024, the US presidential election, significantly influenced the types of scams we saw. For example, one scam email claimed that the recipients were incredibly lucky to be eligible to receive millions of dollars from Donald Trump’s foundation.
Last year, the Russian segment of the internet was not spared from mass scam mailings. We frequently encountered schemes mimicking investment projects of major banks, promising users easy earnings and bonuses. Fraudsters also sent out emails with promotional offers from home appliance and electronics stores. Customers were informed of huge discounts on sales that were supposedly about to end.
The links in such emails led to fraudulent websites that looked identical to legitimate online stores but stood out with extremely low prices. After paying for their desired items, customers lost their money, as orders were never actually placed.
Beyond electronics, scammers also offered other discounted products. In one such campaign, users received an email advertising a sneaker store selling popular models at affordable prices.
Judging by the technical headers of the emails, both the sneaker store and electronics store promotions were sent by the same fraudsters.
Additionally, we came across emails offering recipients to apply for debit or credit cards under favorable conditions. Unlike the electronics and shoe sale scams, these messages were legitimate referral programs from major banks, which enterprising spammers tried to monetize. Technically, such emails are not scams, as their links lead to real banking websites, and recipients do not face any risks. However, senders profit from registrations via the referral program. Nevertheless, we do not recommend clicking links from unknown senders, as seemingly harmless emails from a referral platform could be phishing or scam messages.
In 2024, there was an increase in emails distributing password-protected archives containing malicious content. Sometimes, these files were included not as attachments but via download links, which also required a password. Presumably, this was the attackers’ attempt to bypass email security filters. Typically, the archive password was mentioned in the email text, and sometimes in the attachment’s filename. Notably, fraudsters often disguised malicious archives or links as files with other extensions, such as PDF, XLS, or DOC.
Since April 2024, we have been recording similar distributions of files with the double extension .PDF.RAR, targeting employees of Russian companies in the government, financial, manufacturing, and energy sectors.
We assume that these messages were sent from compromised email accounts of the recipients’ business partners. Some emails contained real correspondence, to which attackers replied with an email containing the malware. All the emails we examined in this campaign were unique. The attackers likely crafted messages to closely mimic the style of the compromised business partner.
Similar messages containing malicious files were also found in other languages. However, unlike campaigns targeting Russian-speaking users, these had more general themes—attachments were disguised as invoices, commercial offers, supply orders, tender schedules, court notices, and other documents.
Last year, attackers frequently threatened legal action to convince victims to click dangerous links or open malicious attachments. These messages primarily targeted Russian companies but were also observed in other languages. Typically, fraudsters posed as business partners, demanding debt repayment; otherwise, they “would be forced to take the matter to arbitration court.” In one such campaign, pre-trial claims in attachments were .DOC files containing VBA scripts. These scripts established connections with command servers and downloaded, saved, and executed malicious files on the victim’s device. Kaspersky’s products detect this payload with the verdict HEUR:Trojan-Downloader.MSOffice.Sload.gen.
In some cases, cybercriminals gave no reason for their legal threats but instead attempted to shock victims with an already “filed” lawsuit to pressure them into opening the attachment. Of course, it contained malware.
According to our observations, the past year saw a rise in the distribution of malicious SVG files. Disguised as harmless images, these files contained scripts that downloaded and installed additional malware on the victim’s device. (Our solutions detect these scripts as Trojan.Script.Agent.sy and Trojan.Script.Agent.qe.) The emails we encountered were written in Spanish and posed as fake legal case notifications and court summons. The text included a password for opening the attached file.
A special category of emails that users complained about in 2024 was requests for quotation from suspicious senders. These emails were sent either from free email addresses or recently created domains. Attackers signed the emails with the names of large companies, included links to their websites, and sometimes even used official company logos. These emails followed a uniform template: the “buyers” briefly introduced themselves, expressed interest in the recipient’s products, and requested a catalog or price list. Interestingly, the fraudsters did not seem to care about the type of goods involved.
If the recipient responded, events could unfold in two ways. In some cases, after receiving a reply to the initial seemingly legitimate request, the fraudsters sent malicious attachments or links in the next email.
In another scenario, the “buyers” engaged in further correspondence with their “potential partner”—the victim—discussing details and insisting on their conditions, including post-payment and requiring the seller to cover customs duties. This meant that the supplier bore all the risks of delivery and could lose their goods without receiving any payment.
In the spring of 2024, we discovered an interesting phishing email scheme that leveraged legitimate Facebook notifications. The service sent entirely legitimate emails to users mentioned in threatening posts. The attackers used compromised Facebook accounts, renamed to “24 Hours Left To Request Review. See Why,” and changed the profile picture to an icon featuring an orange exclamation mark.
Then, the fraudsters created posts on these pages tagging the business accounts of potential victims. The tagged users received notifications from the alarmingly-named pages.
These posts contained more details than the emails: victims were warned about an impending account ban due to a complaint from another user. To dispute the ban for violating service terms, the recipient of the “notification” was required to follow a phishing link from the post—leading to a fake site with Meta logos that requested Facebook login credentials.
We also found phishing emails containing legitimate Facebook links in October 2024, but this time without using the platform’s infrastructure. These emails contained notifications of lawsuits for copyright infringement and the removal of unlawful posts from the recipient’s profile. The target was warned that their personal and business pages would be blocked within 24 hours, pressuring them to take hasty and careless action.
However, they were immediately offered the chance to appeal by contacting the “Appeal Support Center.” The link in the email led to a phishing site disguised as Meta’s support service, where the victim was also asked to enter their profile password. To make the phishing link more convincing, a legitimate mechanism for redirecting users to external Facebook resources was used.
At the end of 2024, we noticed an email campaign targeting companies promoting their business pages on Facebook. These emails mimicked official Meta for Business notifications and threatened to block the user’s account and business page for violating the platform’s rules and community policies.
To dispute these accusations, the fraudsters urged the profile owners to click a link to contact “Facebook support” in a legitimate messenger. However, in reality, the victim was communicating with the owner of a fan page called “Content Moderation Center,” imitating an official support service employee. The scam could have been identified by the “Fan Page” label in the chat, though it was easy to miss.
In 2024, scammers continued to exploit news agenda in spam campaigns.
During the UEFA Euro 2024 football championship in Germany, emails began to appear offering merchandise with UEFA EURO 2024 logos.
After Pavel Durov’s arrest in Paris, we noticed English-language messages calling for donations to supposedly fund his legal defense.
In the fall of last year, a scam campaign began circulating, offering not-yet-released MacBook Pro M4 devices at low prices or even for free. The links in these emails led to fake websites imitating major marketplaces.
Before Black Friday, we recorded a surge in spam offering exclusive discounts. The links in these messages lured victims to sites disguised as marketplaces, electronics stores, and financial institutions.
One of the most common categories of spam email in 2024, complained of frequently by our corporate clients, was commercial offers for online promotion. Users were offered services such as creating or redesigning websites, setting up SEO tools, and purchasing databases with potential client contacts and other information. Other advertised services included guest post placement with backlinks to the client’s site, writing positive reviews, removing negative reviews, and creating personalized email campaigns. While these messages are not malicious or fraudulent, they are mass-distributed and unsolicited, causing inconvenience to users. The popularity of this type of spam is likely driven by the development of digital marketing tools and the search for new clients for small- and medium-sized businesses amid growing online competition.
We also frequently encountered business offers for the online promotion of company accounts on social media. Spammers sell fake likes and followers. They often pose as employees of real social media marketing firms, claiming to be industry leaders. At the end of their emails, the spammers included a link to a marketing platform and payment options for their services. One such campaign, which we observed throughout the past year and is still active, stood out due to the variety of languages used in the emails and the diversity of domain names. With these tactics, the spammers aimed to reach a global audience.
The growing popularity of neural networks has led companies to actively integrate AI into their business processes. We assume that clients of such organizations, in turn, are drawn to service offers that incorporate neural networks. As a natural consequence of this trend, AI-driven solutions began appearing in spam campaigns advertising online marketing services.
Spammers emphasized using AI, particularly ChatGPT, to perform various business tasks. We identified the following themes in these emails:
Other topics also appeared in spam emails, but they all shared the same goal—enhancing business processes and attracting potential clients.
Another particularly popular category of spam related to neural networks was advertising online events. Last year, we encountered numerous examples of emails promoting webinars about the promising capabilities and practical applications of AI in business operations.
In 2024, two main trends were observed in targeted phishing:
In all these cases, the common factor was that clicking the link led the employee to a phishing login page instead of the actual corporate portal. Most often, attackers targeted Microsoft accounts, though some phishing forms mimicked internal corporate resources.
When attempting to open the attachment, the user was redirected to a phishing page. As in the previous case, these fake forms harvested Microsoft credentials and corporate account logins.
The number of phishing attacks in 2024 increased compared to the previous year. Kaspersky solutions blocked 893,216,170 attempts to follow phishing links—26% more than in 2023.
Number of Anti-Phishing triggerings, 2024 (download)
Users from Peru (19.06%) encountered phishing most often. Greece (18.21%) ranked second, followed by Vietnam (17.53%) and Madagascar (17.17%). They are closely followed by Ecuador (16.90%), Lesotho (16.87%) and Somalia (16.70%). The final places in the TOP 10 are occupied by Brunei (16.55%), Tunisia (16.51%) and Kenya (16.38%).
| Country/territory | Share of attacked users* |
| Peru | 19.06 |
| Greece | 18.21 |
| Vietnam | 17.53 |
| Madagascar | 17.17 |
| Ecuador | 16.90 |
| Lesotho | 16.87 |
| Somalia | 16.70 |
| Brunei | 16.55 |
| Tunisia | 16.51 |
| Kenya | 16.38 |
* Share of users who encountered phishing out of the total number of Kaspersky users in the country/territory, 2024
The most common domain zone hosting phishing sites remains the COM zone (29.78%)—its popularity has increased one and a half times compared to 2023. In second place is the XYZ domain (7.10%), which ranked fifth last year, followed by TOP (6.97%), which retained its position in the top ten. Next, with a slight margin from each other, are the ONLINE (4.25%) and SITE (3.87%) domain zones, where phishing sites were less actively hosted last year. The Russian RU domain (2.23%) and the global NET domain (2.02%) are in sixth and seventh place, respectively. Following them are CLICK (1.41%) and INFO (1.35%)—the year before, these zones were not frequently used. Closing the top ten is another national domain: UK, with a share of 1.33%.
Most frequent top-level domains for phishing pages, 2024 (download)
The rating of organizations targeted by phishers is based on the detections of the deterministic component in the Anti-Phishing system on user computers. The component detects all pages with phishing content that the user has tried to open by following a link in an email message or on the web, as long as links to these pages are present in the Kaspersky database.
In 2024, the highest number of attempts to access phishing links blocked by Kaspersky solutions was associated with pages imitating various web services (15.75%), surpassing global internet portals (13.88%), which held the top position in 2023. The third and fourth positions in last year’s top ten also swapped places: banks moved ahead (12.86%), overtaking online stores at 11.52%. Attackers were also interested in social media (8.35%) and messengers (7.98%): attacks targeting them strengthened their positions in the ranking. For websites imitating delivery services, we observed a decline in phishing activity (6.55%), while the share of payment systems remained unchanged at 5.82%. Also included in the list of the most frequently targeted organizations were online games (5.31%) and blogs (3.75%).
Distribution of organizations targeted by phishers, by category, 2024 (download)
In 2024, spam emails accounted for 47.27% of the total global email traffic, an increase of 1.27 p.p. compared to the previous year. The lowest spam levels were recorded in October and November, with average shares dropping to 45.33% and 45.20%, respectively. In December, we observed a seemingly slight upward trend in junk emails, resulting in the fourth quarter of the year being the calmest. Spam activity peaked in the summer, with the highest number of emails recorded in June (49.52%) and July (49.27%).
Share of spam in global email traffic, 2024 (download)
In the Russian internet segment, the average spam share exceeded the global figure, reaching 48.57%, which is 1.98 p.p. higher than in 2023. As in the rest of the world, spammers were least active at the end of the year: in the fourth quarter, 45.14% of emails were spam. However, unlike global trends, in Runet, we recorded four months during which the spam share exceeded half of all traffic: March (51.01%), June (51.53%), July (51.02%), and September (51.25%). These figures identified the third quarter as the most active, with a share of 50.46%. December was the calmest month, and interestingly, despite spam levels being generally high or the same in Russia, the number of spam emails in December was lower than the global figure: 44.56%.
Share of spam in Runet email traffic, 2024 (download)
We continue to observe an increase in the share of spam sent from Russia—from 31.45% to 36.18%. The United States and mainland China, which held second and third place last year, swapped positions, with China’s share increasing by 6 p.p. (17.11%) and the US share decreasing by 3 p.p. (8.40%). Kazakhstan, which entered the top twenty for the first time last year, rose from eighth to fourth place (3.82%), pushing Japan (2.93%) down, and causing Germany, previously in fifth place, to drop one position with a share of 2.10%. India’s share slightly decreased, but the country moved up two positions from last year to seventh place. Conversely, the amount of spam sent from Hong Kong more than doubled (1.75%), allowing this territory to take eighth place in the top twenty. Next come Brazil (1.44%) and the Netherlands (1.25%), whose shares continued to decline.
TOP 20 countries and territories where spam originated in 2024 (download)
In 2024, Kaspersky solutions detected 125,521,794 attempts to open malicious email attachments, ten million fewer than the previous year. Interestingly, one of the peaks in email antivirus detections occurred in April—in contrast to 2023, when this month had the lowest malicious activity. In January and December, we observed a relative decrease in detections, while increases were noted in spring and autumn.
Number of email antivirus detections, 2024 (download)
The most common malicious email attachments were Agensla stealers (6.51%), which ranked second last year. Next were Badun Trojans (4.51%), which spread in archives disguised as electronic documents. The Makoob family moved from eighth to third place (3.96%), displacing the Noon spyware (3.62%), which collects browser passwords and keystrokes. The malicious Badur PDFs, the most common attachments in 2023, dropped to fifth place with a 3.48% share, followed by phishing HTML forms from the Hoax.HTML.Phish family (2.93%). Next in line were Strab spyware Trojans (2.85%), capable of tracking keystrokes, taking screenshots, and performing other typical spyware actions. Rounding out the top ten were SAgent VBS scripts (2.75%), which were not as actively used last year, the Taskun family (2.75%), which maintained its previous share, and PDF documents containing phishing links, Hoax.PDF.Phish (2.11%).
TOP 10 malware families distributed as email attachments, 2024 (download)
The list of the most widespread malware reflects trends similar to the distribution of families, with a few exceptions: the Hoax.HTML.Phish variant of malicious HTML forms dropped two positions (2.20%), and instead of a specific Strab Trojan sample, the top ten included the ISO image Trojan.Win32.ISO.gen, distributed via email (1.39%).
TOP 10 malicious programs distributed as email attachments, 2024 (download)
In 2024, users in Russia continued to face malicious email attachments more frequently than other countries, although the share of email antivirus detections in this country decreased compared to last year, to 11.37%. China ranked second (10.96%), re-entering the top twenty after several years. Next came Spain (8.32%), Mexico (5.73%), and Turkey (5.05%), which dropped one position each with a slight decline in malicious attachments. Switzerland (4.82%) took sixth place, appearing in the ranking for the first time. Following them were Vietnam (3.68%), whose share declined, and the UAE (3.24%), which strengthened its position in the ranking. Also among frequent targets of malicious spam were users from Malaysia (2.99%) and Italy (2.54%).
TOP 20 countries and territories targeted by malicious mailings, 2024 (download)
Political and economic crises will continue to provide new pretexts for fraudulent schemes. In some cases presented in the 2024 report, we can observe the “greed” of cybercriminals: the use of two different company brands on the same page; a credible fake of a resource aimed not at stealing credentials but at stealing money; comprehensive questionnaires that can lead not only to loss of access to funds but also to identity theft. Such multi-layered threats may become a new trend in phishing and scam attacks.
We continue to observe major news events being exploited in spam campaigns that promise easy earnings and discounted goods or services. The growing user interest in artificial intelligence tools is actively being leveraged by spammers to attract an audience, and this trend will undoubtedly continue.
Source: United States Naval Central Command
U.S. CENTRAL COMMAND AREA OF RESPONSIBILITY —
Crewmembers of the U.S. Coast Guard fast-response cutter USCGC Clarence Sutphin, Jr. (WPC-1147) and the mine countermeasures ship USS Devastator (MCM 6) rescued seven mariners from a disabled vessel in the international waters of the Central Arabian Gulf, Feb. 18.
Following a distress signal from the mariners, the Coastguardsmen embarked a rigid-hull inflatable boat to offer assistance. After determining the vessel was no longer sea worthy, the Coastguardsmen brought the mariners back to their ship. Devastator provided back-up support during the operation.
None of the mariners appeared to be injured.
“Providing assistance at sea to mariners in distress is a core Coast Guard mission,” said Coast Guard Lt. Michael O’Dell, Clarence Sutphin, Jr.’s commanding officer. “It is inherently dangerous, but the team executed without hesitation – without fear – to extend their compassion to people in a dire situation. I’m incredibly proud of to be a part of this team.”
Clarence Sutphin, Jr. is forward deployed to the U.S. 5th Fleet area of operations as part of Patrol Forces Southwest Asia. Devastator is an Avenger-class mine countermeasures ship also forward deployed to U.S. 5th Fleet. Both ships help ensure maritime security and stability in the Middle East region.
The U.S. 5th Fleet area of operations encompasses about 2.5 million square miles of water area and includes the Arabian Gulf, Gulf of Oman, Red Sea and parts of the Indian Ocean. The expanse is comprised of 20 countries and includes three critical choke points at the Strait of Hormuz, the Suez Canal and the Strait of Bab al Mandeb at the southern tip of Yemen.
Source: China State Council Information Office 3
The record-breaking “Ne Zha 2” has now officially become the highest-grossing animated film of all time.
A new poster to mark “Ne Zha 2” becoming the No. 1 animated film of all time. [Image courtesy of CMC Pictures]
By Wednesday noon, the unstoppable Chinese animated sensation had grossed 12.42 billion yuan ($1.71 billion) worldwide according to Chinese box office tracker Maoyan Pro. This surpasses Disney and Pixar’s “Inside Out 2,” which claimed the top spot in animation history in 2024 by grossing $1.69 billion, per Box Office Mojo statistics.
As a result, “Ne Zha 2” has become the highest-grossing animated film globally and the eighth-highest-grossing film of all time, regardless of animation or live-action. Notably, it stands as the only Chinese or Asian film in a club dominated by Hollywood cinematic juggernauts.
This is just one of many impressive milestones the film has achieved since its debut on Jan. 29, the first day of the Chinese New Year. Its accomplishments include becoming the highest-grossing Chinese film ever, the highest-grossing film in a single market globally, the first film to surpass $1 billion in a single market, and the first non-Hollywood film to enter the coveted billion-dollar club.
“Thanks to the support of countless audiences, we have been able to achieve these miraculous accomplishments,” said Wang Jing, executive producer of “Ne Zha 2,” during an event promoting movie-themed tourism on Feb. 17 at the China National Film Museum in Beijing. “Rooted in Chinese culture, ‘Ne Zha 2’ reflects the spirit of constant innovation and striving to move upward, embodied by Chinese animators, filmmakers and audiences, showcasing the brilliance of Chinese culture to the world.”
“Congratulations to director Jiaozi and all Chinese animators,” said fellow animator Wang Yunfei, president of Its Cartoon Animation Studio. “Animation is an art form that creates new worlds and new life, which is why I still love it after 25 years in the industry.” Wang told China.org.cn that he hopes Chinese animators will embrace the belief that the journey itself is invaluable at this historic moment. “If you do not climb high mountains, you will not know how high the sky is. Keep your passion alive and continue forging ahead,” he said.
A still from “Ne Zha 2.” [Image courtesy of Enlight Media]
“Ne Zha 2” was developed over five years with a 4,000-strong team, featuring new characters, epic battle sequences and 1,900 special effects shots. In the film’s climactic battle, there are 200 million characters, showcasing wild imagination, a visual feast and immense workloads. The film involved the combined efforts of 138 Chinese animation and VFX companies, including teams that worked on previous animated hits and sci-fi blockbusters such as “Monkey King: Hero Is Back,” “Boonie Bears,” “Jiang Ziya: Legend of Deification” and “The Wandering Earth.”
On social media, many animators who worked on the movie have expressed their excitement and happiness about joining the project, while a few also shared how exhausting the creative process was and how much of a perfectionist director Jiaozi is, challenging them to push their limits. Chen Xuguang, director of the Institute of Film, Television and Theatre at Peking University, noted that the film showcases the collaborative power of China’s creative ecosystem and signals an upgrade in both the film industry and its aesthetic standards.
Wang Shiyong, founder and CEO of Wuhan-based 2:10 Animation, and his team contributed to many visually spectacular scenes in “Ne Zha 2.” He expressed pride in the film’s achievements and emphasized its significance to the Chinese animation industry. “The film’s outstanding box office performance will attract more investment and talent to the animation industry, injecting strong vitality into its development,” he said.
As this world-class film climbs the global top 10 box office chart, its achievements have already stunned both domestic and international audiences, as well as industry insiders, showcasing the prowess and potential of Chinese cinema, culture and its market. Maoyan Pro analysts have now revised their projection for its total earnings to 15.1 billion yuan, which would be enough to place the film at No. 5 on the all-time global box office chart.
The film drew significant international attention and interest after it opened overseas last week in North America, Australia, New Zealand, Fiji and Papua New Guinea. The film earned $7.2 million in North America from Feb. 14 through Sunday, setting a record for the highest opening weekend for any Chinese-language film in the past 20 years. Despite showing in only 660 theaters, it ranked No. 5 on the weekend chart, competing with Marvel’s “Captain America: Brave New World” which was shown in more than 4,000 theaters. In Australia, it secured third place with $1.5 million over the weekend.
A new international poster to mark “Ne Zha 2.” [Image courtesy of Enlight Media]
Both overseas critics and audiences have expressed their enjoyment of the movie. For example, critic Simon Abrams from RogerEbert.com wrote that “Ne Zha 2” is a “rare sequel that amplifies both its action and drama” without sacrificing much of what worked in the first movie, adding: “It’s also a rare blockbuster that offers something worthwhile for a wide-ranging audience.” Another critic, Fred Topel from Deadline.com, called the Chinese blockbuster “visually engaging,” noting that, “The rendering of martial arts battles is as graceful as DreamWorks Animation’s ‘Kung Fu Panda’ series. The myriad creatures should appeal to international fans of fantasy epics like ‘Game of Thrones’ and ‘The Lord of the Rings.’” On Rotten Tomatoes, its audience score has reached 99%, and on IMDb, it has also received an impressive 8.4/10 based on more than 4,300 user ratings.
Distributors announced on Tuesday that the film will be released in China’s Hong Kong and Macao on Feb. 22, with plans to roll out in various international territories later this year, including Malaysia, Saudi Arabia, Japan and Greece.
Additionally, “Ne Zha 2” is generating a ripple effect beyond movie theaters, showcasing how its positive influence extends to culture, tourism, catering, merchandise and stock markets, further boosting China’s vibrant consumption and dynamic economy.
Source: GlobeNewswire (MIL-OSI)
HOUSTON, Feb. 19, 2025 (GLOBE NEWSWIRE) — VAALCO Energy, Inc. (NYSE: EGY; LSE: EGY) (“Vaalco” or the “Company”) today announced that it declared its quarterly cash dividend of $0.0625 per share of common stock for the first quarter of 2025 ($0.25 annualized), which is payable on March 28, 2025, to stockholders of record at the close of business on February 28, 2025. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Board of Directors.
George Maxwell, Vaalco’s Chief Executive Officer, commented, “We are pleased to announce our first quarter 2025 dividend, marking the beginning of the fourth year of paying a meaningful cash dividend to our shareholders. While we plan an active investment program in 2025, our ongoing operational and financial success has allowed us to continue returning cash to our shareholders. We remain committed to paying a sustainable, meaningful dividend to our shareholders while we grow Vaalco through both organic development activities across our diversified portfolio and inorganic growth opportunities.”
About Vaalco
Vaalco, founded in 1985 and incorporated under the laws of Delaware, is a Houston, Texas, USA based, independent energy company with a diverse portfolio of production, development and exploration assets across Gabon, Egypt, Cote d’Ivoire, Equatorial Guinea, Nigeria and Canada.
For Further Information
| Vaalco Energy, Inc. (General and Investor Enquiries) | +00 1 713 543 3422 |
| Website: | www.vaalco.com |
| Al Petrie Advisors (US Investor Relations) | +00 1 713 543 3422 |
| Al Petrie / Chris Delange | |
| Buchanan (UK Financial PR) | +44 (0) 207 466 5000 |
| Ben Romney / Barry Archer | VAALCO@buchanan.uk.com |
Forward Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created by those laws and other applicable laws and may also include “forward-looking information” within the meaning of applicable Canadian securities laws (collectively, “forward-looking statements”). Where a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. All statements other than statements of historical fact may be forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “forecast,” “outlook,” “aim,” “target,” “will,” “could,” “should,” “may,” “likely,” “plan” and “probably” or similar words may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release include, but are not limited to, statements relating to expectations of future dividends to stockholders. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: risks relating to any unforeseen liabilities of Vaalco; the ability to generate cash flows that, along with cash on hand, will be sufficient to support operations and cash requirements; risks relating to the timing and costs of completion for scheduled maintenance of the FPSO servicing the Baobab field; and the risks described under the caption “Risk Factors” in Vaalco’s 2023 Annual Report on Form 10-K filed with the SEC on March 15, 2024 and subsequent Quarterly Reports on Form 10-Q filed with the SEC.
Dividends beyond the first quarter of 2025 have not yet been approved or declared by the Board of Directors. The declaration and payment of future dividends remain at the discretion of the Board of Directors and will be determined based on Vaalco’s financial results, balance sheet strength, cash and liquidity requirements, future prospects, crude oil and natural gas prices, and other factors deemed relevant by the Board of Directors. The Board of Directors reserves all powers related to the declaration and payment of dividends. Consequently, in determining the dividend to be declared and paid on Vaalco’s common stock, the Board of Directors may revise or terminate the payment level at any time without prior notice.
Inside Information
This announcement contains inside information as defined in Regulation (EU) No. 596/2014 on market abuse which is part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”) and is made in accordance with the Company’s obligations under article 17 of MAR. The person responsible for arranging the release of this announcement on behalf of VAALCO is Matthew Powers, Corporate Secretary of VAALCO.
Source: GlobeNewswire (MIL-OSI)
Capping off a year of sustained growth acceleration and stronger than expected FCF generation – surpassing Rule of 40 in 2024 and on track to achieve Rule of 45 in 2025
NEW YORK — Wix.com Ltd. (Nasdaq: WIX), the leading SaaS website builder platform2, today reported financial results for the fourth quarter and full year 2024. In addition, the Company provided its initial outlook for the first quarter and full year 2025. Please visit the Wix Investor Relations website at https://investors.wix.com to view the Q4’24 Shareholder Update and other materials.
“Wix sets a high standard for innovation and creativity, and we’re constantly exceeding expectations. This past year was one of exciting innovation as we introduced revolutionary AI solutions such as the new generation AI Website Builder. We also made meaningful enhancements to the Studio platform, including the AI visual sitemap and wireframe generator and Figma integration among new advanced design capabilities,” said Avishai Abrahami, Wix Co-founder and CEO. “2025 is poised to reimagine and expand the Self Creator experience with the launch of two transformative products planned for the spring and early fall. I strongly believe that these will deliver immense value to users and, in turn, accelerate Self Creator growth to double-digits in the years to come. We’re thrilled about these strategic enhancements, which are set to propel our business forward and establish a powerful foundation for the years ahead.”
“We wrapped 2024 with accelerated growth and profitability, driven by successful execution of our product roadmap and pricing strategy as well as strong business fundamentals,” added Lior Shemesh, CFO at Wix. “With AI usage ramping from our growing suite of innovations and Studio continuing to win market share, we anticipate these to be even bigger growth engines in 2025 and beyond. Solid growth will be coupled with incremental efficiencies from new internal AI initiatives and a stable operating base, enabling us to continue to expand margins and set new profitability records. The high end of our outlook puts us at Rule of 45 in 2025 as we continue to prioritize balancing profitable growth through best-in-class innovation and steadfast execution.”
Q4 2024 Financial Results
FY 2024 Financial Results
____________________
1 Free cash flow excluding expenses associated with the buildout of our new corporate headquarters.
2 Based on number of active live sites as reported by competitors’ figures, independent third-party data and internal data as of Q3 2024.
3 Transaction revenue is a portion of Business Solutions revenue, and we define transaction revenue as all revenue generated through transaction facilitation, primarily from Wix Payments, as well as Wix POS, shipping solutions and multi-channel commerce and gift card solutions.
4 Partners revenue is defined as revenue generated through agencies and freelancers that build sites or applications for other users (“Agencies”) as well as revenue generated through B2B partnerships, such as LegalZoom or Vistaprint (“Resellers”). We identify Agencies using multiple criteria, including but not limited to, the number of sites built, participation in the Wix Partner Program and/or the Wix Marketplace or Wix products used (incl. Wix Studio). Partners revenue includes revenue from both the Creative Subscriptions and Business Solutions businesses.
Financial Outlook
We expect another year of robust bookings and revenue growth powered by existing key growth initiatives and ongoing product enhancements against a stable and positive demand environment:
We expect top-line contribution from those enhancements and initiatives already rolled out and underway to layer in as we progress through the year, resulting in accelerated growth in 2H. This acceleration is anticipated for both revenue and bookings, even as bookings fully laps pricing tailwinds in mid-Q1’25.
As a global company with ~40% of revenue derived in non-US dollar currencies, we began to experience adverse effects from outsized changes in FX rates beginning mid-Q4 and continuing YTD, particularly the US dollar to Euro and British pound exchange rates. Assuming late January spot rates, we anticipate strong FX headwinds to 2025 outlook.
As such, we provide outlook for the year and the first quarter on both as-reported and constant currency bases.
| As-reported | As-reported growth y/y |
FX impact | Constant currency growth y/y |
|
| Full year 2025 | ||||
| Bookings | $2,025 – 2,060 million | 11 – 13% | ~$45 million | 13 – 15% |
| Revenue | $1,970 – 2,000 million | 12 – 14% | ~$34 million | 14 – 16% |
| Free cash flow | $590 – 610 million | 30 – 31% margin | ~$25 million | 31 – 32% margin |
| Q1’25 | ||||
| Revenue | $469 – 473 million | 12 – 13% | ~$6 million | 13 – 14% |
With a meaningful portion of our operating expenses denominated in non-US currencies, the strengthening US dollar is expected to drive a modest benefit to 2025 expenses. As a result, the net FX impact on free cash flow is expected to be smaller than the anticipated top-line headwinds.
We believe our strong commitment to sustained top-line momentum and translating growth into additional operating leverage puts us on track to achieve Rule of 45 in 2025 at the high end of our outlook.
Conference Call and Webcast Information
Wix will host a conference call to discuss the results at 8:30 a.m. ET on Wednesday, February 19, 2025. A live and archived webcast of the conference call will be accessible from the “Investor Relations” section of the Company’s website at https://investors.wix.com/.
About Wix.com Ltd.
Wix is the leading SaaS website builder platform1 to create, manage and grow a digital presence. Founded in 2006, Wix is a comprehensive platform providing users – self-creators, agencies, enterprises, and more – with industry-leading performance, security, AI capabilities and a reliable infrastructure. Offering a wide range of commerce and business solutions, advanced SEO and marketing tools, the platform enables users to take full ownership of their brand, their data and their relationships with their customers. With a focus on continuous innovation and delivery of new features and products, users can seamlessly build a powerful and high-end digital presence for themselves or their clients.
For more about Wix, please visit our Press Room
Media Relations Contact: PR@wix.com
Non-GAAP Financial Measures and Key Operating Metrics
To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, Wix uses the following non-GAAP financial measures: bookings, cumulative cohort bookings, bookings on a constant currency basis, revenue on a constant currency basis, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, free cash flow, free cash flow on a constant currency basis, free cash flow, as adjusted, free cash flow margins, non-GAAP R&D expenses, non-GAAP S&M expenses, non-GAAP G&A expenses, non-GAAP operating expenses, non-GAAP cost of revenue expense, non-GAAP financial expense, non-GAAP tax expense (collectively the “Non-GAAP financial measures”). Measures presented on a constant currency or foreign exchange neutral basis have been adjusted to exclude the effect of y/y changes in foreign currency exchange rate fluctuations. Bookings is a non-GAAP financial measure calculated by adding the change in deferred revenues and the change in unbilled contractual obligations for a particular period to revenues for the same period. Bookings include cash receipts for premium subscriptions purchased by users as well as cash we collect from business solutions, as well as payments due to us under the terms of contractual agreements for which we may have not yet received payment. Cash receipts for premium subscriptions are deferred and recognized as revenues over the terms of the subscriptions. Cash receipts for payments and the majority of the additional products and services (other than Google Workspace) are recognized as revenues upon receipt. Committed payments are recognized as revenue as we fulfill our obligation under the terms of the contractual agreement. Bookings and Creative Subscriptions Bookings are also presented on a further non-GAAP basis by excluding, in each case, bookings associated with long term B2B partnership agreements. Non-GAAP gross margin represents gross profit calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization, divided by revenue. Non-GAAP operating income (loss) represents operating income (loss) calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, acquisition-related expenses and sales tax expense accrual and other G&A expenses (income). Non-GAAP net income (loss) represents net loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, sales tax expense accrual and other G&A expenses (income), amortization of debt discount and debt issuance costs and acquisition-related expenses and non-operating foreign exchange expenses (income). Non-GAAP net income (loss) per share represents non-GAAP net income (loss) divided by the weighted average number of shares used in computing GAAP loss per share. Free cash flow represents net cash provided by (used in) operating activities less capital expenditures. Free cash flow, as adjusted, represents free cash flow further adjusted to exclude one-time cash restructuring charges and the capital expenditures and other expenses associated with the buildout of our new corporate headquarters. Free cash flow margins represent free cash flow divided by revenue. Non-GAAP cost of revenue represents cost of revenue calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP R&D expenses represent R&D expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP S&M expenses represent S&M expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP G&A expenses represent G&A expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP operating expenses represent operating expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP financial expense represents financial expense calculated in accordance with GAAP as adjusted for unrealized gains of equity investments, amortization of debt discount and debt issuance costs and non-operating foreign exchange expenses. Non-GAAP tax expense represents tax expense calculated in accordance with GAAP as adjusted for provisions for income tax effects related to non-GAAP adjustments.
The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that these measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.
For more information on the non-GAAP financial measures, please see the reconciliation tables provided below. The accompanying tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. The Company is unable to provide reconciliations of free cash flow, free cash flow, as adjusted, bookings, cumulative cohort bookings, non-GAAP gross margin, and non-GAAP tax expense to their most directly comparable GAAP financial measures on a forward-looking basis without unreasonable effort because items that impact those GAAP financial measures are out of the Company’s control and/or cannot be reasonably predicted. Such information may have a significant, and potentially unpredictable, impact on our future financial results.
Wix also uses Creative Subscriptions Annualized Recurring Revenue (ARR) as a key operating metric. Creative Subscriptions ARR is calculated as Creative Subscriptions Monthly Recurring Revenue (MRR) multiplied by 12. Creative Subscriptions MRR is calculated as the total of (i) the total monthly revenue of all Creative Subscriptions in effect on the last day of the period, other than domain registrations; (ii) the average revenue per month from domain registrations multiplied by all registered domains in effect on the last day of the period; and (iii) monthly revenue from other partnership agreements including enterprise partners.
Forward-Looking Statements
This document contains forward-looking statements, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements may include projections regarding our future performance, including, but not limited to revenue, bookings and free cash flow, and may be identified by words like “anticipate,” “assume,” “believe,” “aim,” “forecast,” “indication,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “outlook,” “future,” “will,” “seek” and similar terms or phrases. The forward-looking statements contained in this document, including the quarterly and annual guidance, are based on management’s current expectations, which are subject to uncertainty, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Important factors that could cause our actual results to differ materially from those indicated in the forward-looking statements include, among others, our expectation that we will be able to attract and retain registered users and partners, and generate new premium subscriptions, in particular as we continuously adjust our marketing strategy and as the macro-economic environment continues to be turbulent; our expectation that we will be able to increase the average revenue we derive per premium subscription, including through our partners; our expectation that new products and developments, as well as third-party products we will offer in the future within our platform, will receive customer acceptance and satisfaction, including the growth in market adoption of our online commerce solutions and our Wix Studio product; our expectations regarding our ability to develop relevant and required products using artificial intelligence (“AI”), the regulatory environment impacting AI and AI-related activities, including privacy and intellectual property, and potential competitive impacts from AI tools; our assumption that historical user behavior can be extrapolated to predict future user behavior, in particular during turbulent macro-economic environments; our prediction of the future revenues and/or bookings generated by our user cohorts and our ability to maintain and increase such revenue growth, as well as our ability to generate and maintain elevated levels of free cash flow and profitability; our expectation to maintain and enhance our brand and reputation; our expectation that we will effectively execute our initiatives to improve our user support function through our Customer Care team, and continue attracting registered users and partners, and increase user retention, user engagement and sales; our ability to successfully localize our products, including by making our product, support and communication channels available in additional languages and to expand our payment infrastructure to transact in additional local currencies and accept additional payment methods; our expectation regarding the impact of fluctuations in foreign currency exchange rates, interest rates, potential illiquidity of banking systems, and other recessionary trends on our business; our expectations relating to the repurchase of our ordinary shares and/or Convertible Notes pursuant to our repurchase program; our expectation that we will effectively manage our infrastructure; our expectation to comply with AI, privacy, and data protection laws and regulations as well as contractual privacy and data protection obligations; our expectations regarding the outcome of any regulatory investigation or litigation, including class actions; our expectations regarding future changes in our cost of revenues and our operating expenses on an absolute basis and as a percentage of our revenues, as well as our ability to achieve and maintain profitability; our expectations regarding changes in the global, national, regional or local economic, business, competitive, market, and regulatory landscape, including as a result of Israel-Hamas war and/or the Israel-Hezbollah hostilities and/or the Ukraine-Russia war and any escalations thereof and potential for wider regional instability and conflict; our planned level of capital expenditures and our belief that our existing cash and cash from operations will be sufficient to fund our operations for at least the next 12 months and for the foreseeable future; our expectations with respect to the integration and performance of acquisitions; our ability to attract and retain qualified employees and key personnel; and our expectations about entering into new markets and attracting new customer demographics, including our ability to successfully attract new partners large enterprise-level users and to grow our activities, including through the adoption of our Wix Studio product, with these customer types as anticipated and other factors discussed under the heading “Risk Factors” in the Company’s annual report on Form 20-F for the year ended December 31, 2023 filed with the Securities and Exchange Commission on March 22, 2024. The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. Any forward-looking statement made by us in this press release speaks only as of the date hereof. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.
| Wix.com Ltd. | |||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS – GAAP | |||||||||||
| (In thousands, except loss per share data) | |||||||||||
| Three Months Ended | Year Ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| (unaudited) | (unaudited) | ||||||||||
| Revenues | |||||||||||
| Creative Subscriptions | $ | 329,732 | $ | 296,154 | $ | 1,264,975 | $ | 1,152,007 | |||
| Business Solutions | 130,723 | 107,617 | 495,675 | 409,658 | |||||||
| 460,455 | 403,771 | 1,760,650 | 1,561,665 | ||||||||
| Cost of Revenues | |||||||||||
| Creative Subscriptions | 52,671 | 52,794 | 213,422 | 215,515 | |||||||
| Business Solutions | 90,965 | 73,319 | 351,213 | 297,013 | |||||||
| 143,636 | 126,113 | 564,635 | 512,528 | ||||||||
| Gross Profit | 316,819 | 277,658 | 1,196,015 | 1,049,137 | |||||||
| Operating expenses: | |||||||||||
| Research and development | 127,186 | 125,743 | 495,281 | 481,293 | |||||||
| Selling and marketing | 106,629 | 103,642 | 425,457 | 399,577 | |||||||
| General and administrative | 46,984 | 43,401 | 175,136 | 160,033 | |||||||
| Impairment, restructuring and other costs | – | 3,103 | – | 32,614 | |||||||
| Total operating expenses | 280,799 | 275,889 | 1,095,874 | 1,073,517 | |||||||
| Operating income (loss) | 36,020 | 1,769 | 100,141 | (24,380) | |||||||
| Financial income, net | 16,355 | 6,461 | 51,820 | 62,474 | |||||||
| Other income (expenses), net | (94) | 44 | (36) | (255) | |||||||
| Income before taxes on income | 52,281 | 8,274 | 151,925 | 37,839 | |||||||
| Income tax expenses | 4,257 | 5,320 | 13,603 | 4,702 | |||||||
| Net income | $ | 48,024 | $ | 2,954 | $ | 138,322 | $ | 33,137 | |||
| Basic net income per share | $ | 0.86 | $ | 0.05 | $ | 2.49 | $ | 0.58 | |||
| Basic weighted-average shares used to compute net income per share | 55,786,201 | 57,317,815 | 55,579,368 | 56,829,962 | |||||||
| Diluted net income per share | $ | 0.80 | $ | 0.05 | $ | 2.36 | $ | 0.57 | |||
| Diluted weighted-average shares used to compute net income per share | 60,648,791 | 59,085,757 | 59,953,371 | 58,403,037 | |||||||
| Wix.com Ltd. | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| (In thousands) | |||||
| December 31, | December 31, | ||||
| 2024 | 2023 | ||||
| Assets | (unaudited) | (audited) | |||
| Current Assets: | |||||
| Cash and cash equivalents | $ | 660,939 | $ | 609,622 | |
| Short-term deposits | 106,844 | 212,709 | |||
| Restricted deposits | 773 | 2,125 | |||
| Marketable securities | 338,593 | 140,563 | |||
| Trade receivables | 46,166 | 57,394 | |||
| Prepaid expenses and other current assets | 126,887 | 47,792 | |||
| Total current assets | 1,280,202 | 1,070,205 | |||
| Long-Term Assets: | |||||
| Prepaid expenses and other long-term assets | 27,021 | 34,296 | |||
| Property and equipment, net | 128,155 | 136,928 | |||
| Marketable securities | 6,135 | 64,806 | |||
| Intangible assets, net | 22,141 | 28,010 | |||
| Goodwill | 49,329 | 49,329 | |||
| Operating lease right-of-use assets | 399,861 | 420,562 | |||
| Total long-term assets | 632,642 | 733,931 | |||
| Total assets | $ | 1,912,844 | $ | 1,804,136 | |
| Liabilities and Shareholders’ Deficiency | |||||
| Current Liabilities: | |||||
| Trade payables | $ | 48,003 | $ | 38,305 | |
| Employees and payroll accruals | 142,007 | 56,581 | |||
| Deferred revenues | 661,171 | 592,608 | |||
| Current portion of convertible notes, net | 572,880 | – | |||
| Accrued expenses and other current liabilities | 63,246 | 76,556 | |||
| Operating lease liabilities | 27,907 | 24,981 | |||
| Total current liabilities | 1,515,214 | 789,031 | |||
| Long Term Liabilities: | |||||
| Long-term deferred revenues | 89,271 | 83,384 | |||
| Long-term deferred tax liability | 1,965 | 7,167 | |||
| Convertible notes, net | – | 569,714 | |||
| Other long-term liabilities | 16,021 | 7,699 | |||
| Long-term operating lease liabilities | 369,159 | 401,626 | |||
| Total long-term liabilities | 476,416 | 1,069,590 | |||
| Total liabilities | 1,991,630 | 1,858,621 | |||
| Shareholders’ Deficiency | |||||
| Ordinary shares | 107 | 110 | |||
| Additional paid-in capital | 1,840,574 | 1,539,952 | |||
| Treasury Stock | (1,025,167) | (558,875) | |||
| Accumulated other comprehensive loss | 7,242 | 4,192 | |||
| Accumulated deficit | (901,542) | (1,039,864) | |||
| Total shareholders’ deficiency | (78,786) | (54,485) | |||
| Total liabilities and shareholders’ deficiency | $ | 1,912,844 | $ | 1,804,136 | |
| Wix.com Ltd. | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| (In thousands) | |||||||||||
| Three Months Ended | Year Ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| (unaudited) | (unaudited) | ||||||||||
| OPERATING ACTIVITIES: | |||||||||||
| Net income | $ | 48,024 | $ | 2,954 | $ | 138,322 | $ | 33,137 | |||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
| Depreciation | 6,278 | 6,725 | 25,246 | 20,492 | |||||||
| Amortization | 1,460 | 1,488 | 5,869 | 5,954 | |||||||
| Share based compensation expenses | 61,801 | 58,195 | 240,721 | 224,625 | |||||||
| Amortization of debt discount and debt issuance costs | 793 | 789 | 3,166 | 4,194 | |||||||
| Changes in accrued interest and exchange rate on short term and long term deposits | (635) | (586) | 852 | (2,415) | |||||||
| Non-cash impairment, restructuring and other costs | – | 3,567 | – | 26,699 | |||||||
| Amortization of premium and discount and accrued interest on marketable securities, net | (7,838) | 4,237 | (13,381) | 8,346 | |||||||
| Remeasurement loss (gain) on Marketable equity | – | (10,296) | (3,367) | (30,608) | |||||||
| Changes in deferred income taxes, net | (7) | (2,035) | (5,196) | (8,784) | |||||||
| Changes in operating lease right-of-use assets | 4,351 | 7,174 | 24,246 | 27,231 | |||||||
| Changes in operating lease liabilities | (2,821) | 16,701 | (33,086) | (31,333) | |||||||
| Loss on foreign exchange, net | 2,471 | – | 3,906 | – | |||||||
| Decrease (increase) in trade receivables | 4,058 | (2,794) | 11,228 | (15,308) | |||||||
| Decrease in prepaid expenses and other current and long-term assets | (63,684) | (10,845) | (76,963) | (20,105) | |||||||
| Increase (decrease) in trade payables | 17,329 | 15,120 | 12,893 | (52,455) | |||||||
| Increase (decrease) in employees and payroll accruals | 66,407 | (8,307) | 85,426 | (29,532) | |||||||
| Increase in short term and long term deferred revenues | 1,609 | 2,788 | 74,450 | 76,193 | |||||||
| Increase (decrease) in accrued expenses and other current liabilities | (5,860) | 5,505 | 3,083 | 11,915 | |||||||
| Net cash provided by operating activities | 133,736 | 90,380 | 497,415 | 248,246 | |||||||
| INVESTING ACTIVITIES: | |||||||||||
| Proceeds from short-term deposits and restricted deposits | 97,051 | 131,754 | 276,697 | 625,495 | |||||||
| Investment in short-term deposits and restricted deposits | (25,540) | (99,725) | (170,332) | (297,917) | |||||||
| Investment in marketable securities | – | (2,607) | (267,209) | (6,732) | |||||||
| Proceeds from marketable securities | 15,000 | 33,690 | 125,176 | 250,960 | |||||||
| Purchase of property and equipment and lease prepayment | (1,562) | (9,582) | (17,813) | (63,021) | |||||||
| Capitalization of internal use of software | (401) | (408) | (1,523) | (3,028) | |||||||
| Investment in other assets | – | – | – | (111) | |||||||
| Proceeds from investment in other assets | $ | – | – | $ | 550 | – | |||||
| Proceeds from sale of equity securities | – | 19,203 | 22,148 | 68,671 | |||||||
| Purchases of investments in privately held companies | (1,000) | (76) | (3,160) | (7,603) | |||||||
| Net cash provided by investing activities | 83,548 | 72,249 | (35,466) | 566,714 | |||||||
| FINANCING ACTIVITIES: | |||||||||||
| Proceeds from exercise of options and ESPP shares | 6,692 | 898 | 59,576 | 39,660 | |||||||
| Purchase of treasury stock | – | (58,698) | (466,302) | (127,017) | |||||||
| Repayment of convertible notes | – | – | – | (362,667) | |||||||
| Net cash provided by (used in) financing activities | 6,692 | (57,800) | (406,726) | (450,024) | |||||||
| Effect of exchange rates on cash, cash equivalent and restricted cash | (2,471) | – | (3,906) | – | |||||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 221,505 | 104,829 | 51,317 | 364,936 | |||||||
| CASH AND CASH EQUIVALENTS—Beginning of period | 439,434 | 504,793 | 609,622 | 244,686 | |||||||
| CASH AND CASH EQUIVALENTS—End of period | $ | 660,939 | $ | 609,622 | $ | 660,939 | $ | 609,622 | |||
| Wix.com Ltd. | |||||||||||
| KEY PERFORMANCE METRICS | |||||||||||
| (In thousands) | |||||||||||
| Three Months Ended | Year Ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| (unaudited) | (unaudited) | ||||||||||
| Creative Subscriptions | 329,732 | 296,154 | 1,264,975 | 1,152,007 | |||||||
| Business Solutions | 130,723 | 107,617 | 495,675 | 409,658 | |||||||
| Total Revenues | $ | 460,455 | $ | 403,771 | $ | 1,760,650 | $ | 1,561,665 | |||
| Creative Subscriptions | 325,203 | 283,501 | 1,315,445 | 1,174,776 | |||||||
| Business Solutions | 139,389 | 111,503 | 514,607 | 422,727 | |||||||
| Total Bookings | $ | 464,592 | $ | 395,004 | $ | 1,830,052 | $ | 1,597,503 | |||
| Free Cash Flow | $ | 131,773 | $ | 80,390 | $ | 478,079 | $ | 182,197 | |||
| Free Cash Flow excluding HQ build out and restructuring costs | $ | 131,773 | $ | 90,125 | $ | 488,404 | $ | 246,058 | |||
| Creative Subscriptions ARR | $ | 1,343,070 | $ | 1,192,814 | $ | 1,343,070 | $ | 1,192,814 | |||
| Wix.com Ltd. | |||||||||||
| RECONCILIATION OF REVENUES TO BOOKINGS | |||||||||||
| (In thousands) | |||||||||||
| Three Months Ended | Year Ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| (unaudited) | (unaudited) | ||||||||||
| Revenues | $ | 460,455 | $ | 403,771 | $ | 1,760,650 | $ | 1,561,665 | |||
| Change in deferred revenues | 1,609 | 2,788 | 74,450 | 76,193 | |||||||
| Change in unbilled contractual obligations | 2,528 | (11,555) | (5,048) | (40,355) | |||||||
| Bookings | $ | 464,592 | $ | 395,004 | $ | 1,830,052 | $ | 1,597,503 | |||
| Y/Y growth | 18% | 15% | |||||||||
| Three Months Ended | Year Ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| (unaudited) | (unaudited) | ||||||||||
| Creative Subscriptions Revenues | $ | 329,732 | $ | 296,154 | $ | 1,264,975 | $ | 1,152,007 | |||
| Change in deferred revenues | (7,057) | (1,098) | 55,518 | 63,124 | |||||||
| Change in unbilled contractual obligations | 2,528 | (11,555) | (5,048) | (40,355) | |||||||
| Creative Subscriptions Bookings | $ | 325,203 | $ | 283,501 | $ | 1,315,445 | $ | 1,174,776 | |||
| Y/Y growth | 15% | 12% | |||||||||
| Three Months Ended | Year Ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| (unaudited) | (unaudited) | ||||||||||
| Business Solutions Revenues | $ | 130,723 | $ | 107,617 | $ | 495,675 | $ | 409,658 | |||
| Change in deferred revenues | 8,666 | 3,886 | 18,932 | 13,069 | |||||||
| Business Solutions Bookings | $ | 139,389 | $ | 111,503 | $ | 514,607 | $ | 422,727 | |||
| Y/Y growth | 25% | 22% | |||||||||
| Wix.com Ltd. | |||||||||||
| RECONCILIATION OF COHORT BOOKINGS | |||||||||||
| (In millions) | |||||||||||
| Year Ended | |||||||||||
| December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| (unaudited) | |||||||||||
| Q1 Cohort revenues | $ | 45 | $ | 45 | |||||||
| Q1 Change in deferred revenues | 16 | 15 | |||||||||
| Q1 Cohort Bookings | $ | 61 | $ | 60 | |||||||
| Wix.com Ltd. | |||||||||||
| RECONCILIATION OF REVENUES AND BOOKINGS EXCLUDING FX IMPACT | |||||||||||
| (In thousands) | |||||||||||
| Three Months Ended | |||||||||||
| December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| (unaudited) | |||||||||||
| Revenues | $ | 460,455 | $ | 403,771 | |||||||
| FX impact on Q4/24 using Y/Y rates | (110) | – | |||||||||
| Revenues excluding FX impact | $ | 460,345 | $ | 403,771 | |||||||
| Y/Y growth | 14% | ||||||||||
| Three Months Ended | |||||||||||
| December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| (unaudited) | |||||||||||
| Bookings | $ | 464,592 | $ | 395,004 | |||||||
| FX impact on Q4/24 using Y/Y rates | 1,600 | – | |||||||||
| Bookings excluding FX impact | $ | 466,192 | $ | 395,004 | |||||||
| Y/Y growth | 18% | ||||||||||
| Wix.com Ltd. | |||||||||||
| TOTAL ADJUSTMENTS GAAP TO NON-GAAP | |||||||||||
| (In thousands) | |||||||||||
| Three Months Ended | Year Ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| (1) Share based compensation expenses: | (unaudited) | (unaudited) | |||||||||
| Cost of revenues | $ | 3,466 | $ | 3,675 | $ | 14,146 | $ | 15,013 | |||
| Research and development | 32,320 | 31,982 | 126,462 | 119,482 | |||||||
| Selling and marketing | 9,625 | 11,232 | 38,755 | 41,277 | |||||||
| General and administrative | 16,390 | 11,306 | 61,358 | 48,853 | |||||||
| Total share based compensation expenses | 61,801 | 58,195 | 240,721 | 224,625 | |||||||
| (2) Amortization | 1,834 | 1,488 | 6,243 | 5,954 | |||||||
| (3) Acquisition related expenses | – | 9 | 6 | 472 | |||||||
| (4) Amortization of debt discount and debt issuance costs | 793 | 789 | 3,166 | 4,194 | |||||||
| (5) Impairment, restructuring and other costs | – | 3,103 | – | 32,614 | |||||||
| (6) Sales tax accrual and other G&A expenses | 881 | 137 | 1,464 | 748 | |||||||
| (7) Unrealized loss (gain) on equity and other investments | – | (10,296) | (2,536) | (30,608) | |||||||
| (8) Non-operating foreign exchange income | 3,767 | 15,287 | (4,703) | 1,499 | |||||||
| (9) Provision for income tax effects related to non-GAAP adjustments | – | 2,368 | 583 | (4,337) | |||||||
| Total adjustments of GAAP to Non GAAP | $ | 69,076 | $ | 71,080 | $ | 244,944 | $ | 235,161 | |||
| Wix.com Ltd. | |||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT | |||||||||||
| (In thousands) | |||||||||||
| Three Months Ended | Year Ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| (unaudited) | (unaudited) | ||||||||||
| Gross Profit | $ | 316,819 | $ | 277,658 | $ | 1,196,015 | $ | 1,049,137 | |||
| Share based compensation expenses | 3,466 | 3,675 | 14,146 | 15,013 | |||||||
| Acquisition related expenses | – | 5 | – | 229 | |||||||
| Amortization | 667 | 667 | 2,669 | 2,669 | |||||||
| Non GAAP Gross Profit | 320,952 | 282,005 | 1,212,830 | 1,067,048 | |||||||
| Non GAAP Gross margin | 70% | 70% | 69% | 68% | |||||||
| Three Months Ended | Year Ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| (unaudited) | (unaudited) | ||||||||||
| Gross Profit – Creative Subscriptions | $ | 277,061 | $ | 243,360 | $ | 1,051,553 | $ | 936,492 | |||
| Share based compensation expenses | 2,482 | 2,695 | 10,232 | 11,081 | |||||||
| Non GAAP Gross Profit – Creative Subscriptions | 279,543 | 246,055 | 1,061,785 | 947,573 | |||||||
| Non GAAP Gross margin – Creative Subscriptions | 85% | 83% | 84% | 82% | |||||||
| Three Months Ended | Year Ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| (unaudited) | (unaudited) | ||||||||||
| Gross Profit – Business Solutions | $ | 39,758 | $ | 34,298 | $ | 144,462 | $ | 112,645 | |||
| Share based compensation expenses | 984 | 980 | 3,914 | 3,932 | |||||||
| Acquisition related expenses | – | 5 | – | 229 | |||||||
| Amortization | 667 | 667 | 2,669 | 2,669 | |||||||
| Non GAAP Gross Profit – Business Solutions | 41,409 | 35,950 | 151,045 | 119,475 | |||||||
| Non GAAP Gross margin – Business Solutions | 32% | 33% | 30% | 29% | |||||||
| Wix.com Ltd. | |||||||||||
| RECONCILIATION OF OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME | |||||||||||
| (In thousands) | |||||||||||
| Three Months Ended | Year Ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| (unaudited) | (unaudited) | ||||||||||
| Operating income (loss) | $ | 36,020 | $ | 1,769 | $ | 100,141 | $ | (24,380) | |||
| Adjustments: | |||||||||||
| Share based compensation expenses | 61,801 | 58,195 | 240,721 | 224,625 | |||||||
| Amortization | 1,834 | 1,488 | 6,243 | 5,954 | |||||||
| Impairment, restructuring and other charges | – | 3,103 | – | 32,614 | |||||||
| Sales tax accrual and other G&A expenses | 881 | 137 | 1,464 | 748 | |||||||
| Acquisition related expenses | – | 9 | 6 | 472 | |||||||
| Total adjustments | $ | 64,516 | $ | 62,932 | $ | 248,434 | $ | 264,413 | |||
| Non GAAP operating income | $ | 100,536 | $ | 64,701 | $ | 348,575 | $ | 240,033 | |||
| Non GAAP operating margin | 22% | 16% | 20% | 15% | |||||||
| Wix.com Ltd. | |||||||||||
| RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME AND NON-GAAP NET INCOME PER SHARE | |||||||||||
| (In thousands, except per share data) | |||||||||||
| Three Months Ended | Year Ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| (unaudited) | (unaudited) | ||||||||||
| Net income | $ | 48,024 | $ | 2,954 | $ | 138,322 | $ | 33,137 | |||
| Share based compensation expenses and other Non GAAP adjustments | 69,076 | 71,080 | 244,944 | 235,161 | |||||||
| Non-GAAP net income$ | $ | 117,100 | $ | 74,034 | $ | 383,266 | $ | 268,298 | |||
| Basic Non GAAP net income per share | $ | 2.10 | $ | 1.29 | $ | 6.90 | $ | 4.72 | |||
| Weighted average shares used in computing basic Non GAAP net income per share | 55,786,201 | 57,317,815 | 55,579,368 | 56,829,962 | |||||||
| Diluted Non GAAP net income per share | $ | 1.93 | $ | 1.22 | $ | 6.39 | $ | 4.39 | |||
| Weighted average shares used in computing diluted Non GAAP net income per share | 60,648,791 | 60,512,505 | 59,953,371 | 61,106,462 | |||||||
| Wix.com Ltd. | |||||||||||
| RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW | |||||||||||
| (In thousands) | |||||||||||
| Three Months Ended | Year Ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| (unaudited) | (unaudited) | ||||||||||
| Net cash provided by operating activities | $ | 133,736 | $ | 90,380 | $ | 497,415 | $ | 248,246 | |||
| Capital expenditures, net | (1,963) | (9,990) | (19,336) | (66,049) | |||||||
| Free Cash Flow | $ | 131,773 | $ | 80,390 | $ | 478,079 | $ | 182,197 | |||
| Restructuring and other costs | – | 1,411 | – | 5,915 | |||||||
| Capex related to HQ build out | – | 8,324 | 10,325 | 57,946 | |||||||
| Free Cash Flow excluding HQ build out and restructuring costs | $ | 131,773 | $ | 90,125 | $ | 488,404 | $ | 246,058 | |||
Attachments
Source: GlobalData
Join GlobalData’s webinar to explore the impact of disruptive shifts in geopolitics
Which parts of the US President Donald Trump’s geopolitical agenda matters most for global business risks and opportunities? Trump’s bid to settle the Russia-Ukraine war without including Ukrainian or European officials in discussions is the latest in a series of foreign policy moves that include moves to annex Greenland, reclaim the Panama Canal, and “clear out” the Gaza Strip. GlobalData’s latest Strategic Intelligence webinar will focus on the Trump administration’s policies towards US adversaries, including China, Russia, and Iran.
This insightful webinar from the Strategic Intelligence team at GlobalData, a leading data and analytics company, takes place on Thursday, 20 February 2025 at 4pm GMT/11am EST. You can register here
Our panel of experts for this webinar are Carolina Pinto, Analyst in the Strategic Intelligence team; Christopher Granville, Managing Director, Global Political & Policy Research, TS Lombard; and Grace Fan, Managing Director, Global Policy Research and Disruptive Themes Research, TS Lombard.
Granville and Fan say: “Trump’s first month back in the White House has opened a disruptive new chapter in global geopolitics, with shockwaves from his early moves on trade to foreign policy already rippling across borders and industries. This indispensable webinar will offer our incisive analysis of Trump 2.0’s initial geopolitical gambits, framed within the intricate web of the US’s three traditional adversaries (China, Russia, Iran, and proxies) and amid the powder keg of two live conflicts. We will examine the complex interplay of these issues not only from a bilateral perspective (US versus adversary country) but also touching on their profound reverberations on the wider US alliance network (from Europe to Asia) as well as the global economy, with high-stakes ramifications ahead for investors, capital markets and global supply chains.”
Pinto adds: “Supply chain disruptions are becoming worse and more frequent. Geopolitical fractures are a leading cause of this trend. This webinar will explore whether Trump’s America First agenda will raise or ease geopolitical tensions.”
Register now for GlobalData’s Trump shaking up the world webinar on Thursday 20 February 2025 at 4pm GMT/11am EST.
Source: The Conversation – Global Perspectives – By Alexander Korolev, Senior Lecturer in Politics and International Relations, UNSW Sydney
The United States and Russia agreed to work on a plan to end the war in Ukraine at high-level talks in Saudi Arabia this week. Ukrainian and European representatives were pointedly not invited to take part.
US President Donald Trump seemingly entered into these negotiations prepared to capitulate on two main points that Russian President Vladimir Putin has been seeking. Russia is opposed to Ukraine joining NATO and wants to retain Ukrainian territory captured since its invasion of Crimea in 2014.
Such a dramatic shift in Washington’s approach to Ukraine’s sovereignty and security has undermined Western-Ukrainian unity on the acceptable parameters around ending the war.
Ukrainian President Volodymyr Zelensky said Ukraine won’t accept a deal negotiated without them. Former US National Security Adviser John Bolton said Trump “effectively surrendered” to Putin.
European leaders, too, are concerned after they were excluded from the Saudi talks. German Chancellor Olaf Scholz said:
This does not mean that peace can be dictated and that Ukraine must accept what is presented to it.
Many believe Trump’s moves to splinter this trans-Atlantic front against Russia send a signal that Washington is
abandoning its commitment to European security.
However, there’s another important factor at play in Trump’s actions: the intensifying global competition over critical minerals. Trump wants to secure access to Ukraine’s vast reserves of these minerals, even if it means breaking with the US’ traditional allies in the European Union.
According to some reports, Ukraine has deposits of 22 of the 34 minerals identified as critical by the EU. These include:
China currently dominates the world’s supply chains of these minerals – it is the largest source of US imports of 26 of the 50 minerals classified as critical by the United States Geological Survey.
This is the reason behind Trump’s suggestion last week that the US be granted 50% of Ukraine’s rare earth minerals as reimbursement for the billions of dollars in weapons and support it has provided to Kyiv since the war began.
The problem, however, is that at least 40% of Ukraine’s minerals are currently under Russian occupation in the eastern Donetsk and Luhansk regions of the country. (Other sources put this figure as high as 70%.)
Concerned about Ukraine’s territorial integrity, Zelensky has publicly rejected the US demand for half of Ukraine’s mineral resources, because the proposal does not include security guarantees. It only vaguely referred to payment for future aid, according to reports.
In response, the White House National Security Council spokesperson Brian Hughes said:
President Zelensky is being short-sighted about the excellent opportunity the Trump administration has presented the Ukraine.
A big question ahead of any peace negotiations over Ukraine is whether commercially-minded Trump would be willing to accept a counter-proposal from Putin.
Since Russia currently controls large swathes of mineral-rich eastern Ukraine, Putin may be willing to offer Trump an exclusive critical minerals deal in exchange for the US formally committing to not restoring Ukraine’s pre-2014 borders and not letting the country into NATO.
Ukraine, meanwhile, may be angling for its own minerals deal with European countries in exchange for their continued support. Prime Minister Denys Shmyhal expressed his country’s willingness to set up joint ventures with the EU in this area:
We could replace Russian titanium on the European market, contributing to the development of both the EU’s civilian industry and advanced military technologies.
He also said the project of rebuilding Ukraine could be a boon for the entire bloc.
The European Commission has recommended a policy of encouraging Ukraine to export these materials to the EU. In response, authorities in Kyiv started working out the necessary regulatory and legal measures to integrate Ukraine into the EU’s resource strategy.
With so many powers keen to access its minerals, Ukraine is in an extremely complex and hard-to-navigate geopolitical situation.
Zelensky’s bet on the EU, instead of the US, might be right, given the growing rift between Brussels and Washington over Ukraine’s future. But as Thucydides, the ancient Greek historian, once said, the odds may be stacked against it:
Right, as the world goes, is only in question between equals in power, while the strong do what they can and the weak suffer what they must.
Alexander Korolev does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
– ref. Trump wants to do a deal for Ukraine’s critical minerals. Will Zelensky give him what he wants – or will Putin? – https://theconversation.com/trump-wants-to-do-a-deal-for-ukraines-critical-minerals-will-zelensky-give-him-what-he-wants-or-will-putin-250064
Source: The Conversation (Au and NZ) – By Alexander Korolev, Senior Lecturer in Politics and International Relations, UNSW Sydney
The United States and Russia agreed to work on a plan to end the war in Ukraine at high-level talks in Saudi Arabia this week. Ukrainian and European representatives were pointedly not invited to take part.
US President Donald Trump seemingly entered into these negotiations prepared to capitulate on two main points that Russian President Vladimir Putin has been seeking. Russia is opposed to Ukraine joining NATO and wants to retain Ukrainian territory captured since its invasion of Crimea in 2014.
Such a dramatic shift in Washington’s approach to Ukraine’s sovereignty and security has undermined Western-Ukrainian unity on the acceptable parameters around ending the war.
Ukrainian President Volodymyr Zelensky said Ukraine won’t accept a deal negotiated without them. Former US National Security Adviser John Bolton said Trump “effectively surrendered” to Putin.
European leaders, too, are concerned after they were excluded from the Saudi talks. German Chancellor Olaf Scholz said:
This does not mean that peace can be dictated and that Ukraine must accept what is presented to it.
Many believe Trump’s moves to splinter this trans-Atlantic front against Russia send a signal that Washington is
abandoning its commitment to European security.
However, there’s another important factor at play in Trump’s actions: the intensifying global competition over critical minerals. Trump wants to secure access to Ukraine’s vast reserves of these minerals, even if it means breaking with the US’ traditional allies in the European Union.
According to some reports, Ukraine has deposits of 22 of the 34 minerals identified as critical by the EU. These include:
China currently dominates the world’s supply chains of these minerals – it is the largest source of US imports of 26 of the 50 minerals classified as critical by the United States Geological Survey.
This is the reason behind Trump’s suggestion last week that the US be granted 50% of Ukraine’s rare earth minerals as reimbursement for the billions of dollars in weapons and support it has provided to Kyiv since the war began.
The problem, however, is that at least 40% of Ukraine’s minerals are currently under Russian occupation in the eastern Donetsk and Luhansk regions of the country. (Other sources put this figure as high as 70%.)
Concerned about Ukraine’s territorial integrity, Zelensky has publicly rejected the US demand for half of Ukraine’s mineral resources, because the proposal does not include security guarantees. It only vaguely referred to payment for future aid, according to reports.
In response, the White House National Security Council spokesperson Brian Hughes said:
President Zelensky is being short-sighted about the excellent opportunity the Trump administration has presented the Ukraine.
A big question ahead of any peace negotiations over Ukraine is whether commercially-minded Trump would be willing to accept a counter-proposal from Putin.
Since Russia currently controls large swathes of mineral-rich eastern Ukraine, Putin may be willing to offer Trump an exclusive critical minerals deal in exchange for the US formally committing to not restoring Ukraine’s pre-2014 borders and not letting the country into NATO.
Ukraine, meanwhile, may be angling for its own minerals deal with European countries in exchange for their continued support. Prime Minister Denys Shmyhal expressed his country’s willingness to set up joint ventures with the EU in this area:
We could replace Russian titanium on the European market, contributing to the development of both the EU’s civilian industry and advanced military technologies.
He also said the project of rebuilding Ukraine could be a boon for the entire bloc.
The European Commission has recommended a policy of encouraging Ukraine to export these materials to the EU. In response, authorities in Kyiv started working out the necessary regulatory and legal measures to integrate Ukraine into the EU’s resource strategy.
With so many powers keen to access its minerals, Ukraine is in an extremely complex and hard-to-navigate geopolitical situation.
Zelensky’s bet on the EU, instead of the US, might be right, given the growing rift between Brussels and Washington over Ukraine’s future. But as Thucydides, the ancient Greek historian, once said, the odds may be stacked against it:
Right, as the world goes, is only in question between equals in power, while the strong do what they can and the weak suffer what they must.
Alexander Korolev does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
– ref. Trump wants to do a deal for Ukraine’s critical minerals. Will Zelensky give him what he wants – or will Putin? – https://theconversation.com/trump-wants-to-do-a-deal-for-ukraines-critical-minerals-will-zelensky-give-him-what-he-wants-or-will-putin-250064
Source: The White House
11:48 A.M. EST
Q Mr. President, great to see you again.
THE PRESIDENT: Thank you very much. Thank you.
Q How are you?
THE PRESIDENT: Thank you.
Q Elon Musk.
MR. MUSK: Hi.
Q Great to see you.
MR. MUSK: Thanks. Thanks for having me.
Q I’ve been reading a lot about you. I’ve got to start with this. So, he’s working for free with DOGE. He’s — he’s kind of put a lot of his life on hold, and you sued Twitter a number of years ago. You just made him pay you $10 million?
THE PRESIDENT: That’s right. That’s right.
Q That’s — that’s right. (Laughs.)
THE PRESIDENT: Well, I sued — I sued from long before he had it.
MR. MUSK: Yeah. Yeah. (Inaudible.)
THE PRESIDENT: And, I mean, they really did a number on me, you know. And I sued, and they had to pay. You know, they paid $10 million settlement.
Q You’re okay with that?
MR. MUSK: I mean, I left it up to the lawyers and, you know, the team running Twitter. So, I said, “You guys do what you think is the right — makes sense.”
Q I think it’s funny.
THE PRESIDENT: I think —
Q Because —
THE PRESIDENT: — it’s a very low — I was looking to get much more money than that.
Q So, you gave him a discount w- — in the lawsuit?
THE PRESIDENT: He got — oh, he got a big discount. I don’t think he even knows about it.
Q He’s become one of your — if you read and believe the media — he’s become one of your best friends. He’s working for free for you. He’s —
MR. MUSK: Well, I love the president. I just want to be clear about that.
Q You don’t care about that?
MR. MUSK: I — no, I love the pr- — I —
Q You love the president?
MR. MUSK: I think — I think President Trump is a good man, and — and he’s, you know — I — I —
THE PRESIDENT: That’s the way he said that. You know, there’s something nice about. (Laughter.)
MR. MUSK: No, it is. I, you know —
THE PRESIDENT: It is.
MR. MUSK: Because, I mean, the president has been so — so unfairly attacked in the media. It’s truly outrageous. And I’ve sp- — at this point, spent a lot of time with the president, and not once have I seen him do something that was mean or cruel or — or wrong. Not once.
Q You know, I’ve known him for 30 years.
MR. MUSK: Yeah.
Q And I’ve never seen anybody take as much as he’s taken.
MR. MUSK: Yeah.
Q And we’ve discussed this. And I’m like, “How do you deal with it?”
THE PRESIDENT: Did have a choice? (Laughs.) I didn’t have a choice.
Q Well, you would say that to me. I’m like, “What — what am I going to do? Worry about it?”
THE PRESIDENT: That’s the only thing I can say.
Q And, you know — and then culminating in two assassination attempts, which resulted in your endorsement.
MR. MUSK: Well, I was going to do it anyway, but that was —
Q That was it?
MR. MUSK: — a precipitating event, yeah.
THE PRESIDENT: That speeded it up a little bit?
MR. MUSK: Yeah. Yeah.
Q The day of the assassination?
THE PRESIDENT: Nice. I didn’t know that.
MR. MUSK: Yeah, it just — it sped it up, but I was going to do it anyway.
Q Mr. President, with your indulgence, I’m convinced that people only know a little bit about Elon. I don’t think they know everything about Elon, because as I studied for and prepared for this interview, I learned a lot about you that I didn’t know. I think people will think about Tesla. Democrats are demonizing you and — and trying to make the country hate you.
I just want people to understand you a little bit better, and the person that you’ve gotten to know and have now put a lot of trust in.
THE PRESIDENT: Sure.
Q And, you know, just — let’s go over a little bit of your bio, starting —
MR. MUSK: Ah, okay.
Q — with PayPal and how you became involved in Tesla and SpaceX and Neuralink —
MR. MUSK: This — this could take a while.
Q — and all these —
MR. MUSK: I mean, you know, I — I think the way you think of me is, like, I’m a technologist and I try to make technologies that improve the world and make life better.
Q You can show them your shirt.
MR. MUSK: Yeah, and that’s why, like, my t-shirt says “tech support” — (laughter) — because I’m here to provide the president with — with technology support.
And now, that — that may seem, like, well, is that a silly thing? But actually, it’s a very important thing, because the president will make these executive orders, which are very sensible and good for the country, but then they don’t get implemented, you know?
So, if you take the — for example, all the funding for the migrant hotels, the president issued an executive order: Hey, we need to stop taking taxpayer money and — and paying for luxury hotels for illegal immigrants —
Q It’s crazy.
MR. MUSK: — which makes no sense. Like, obviously, people do not want their tax dollars going to — to fund high-end hotels for — for illegals. And yet, they were still doing that, even as late as last week.
And so, you know, we went in there, and we were like, “This is in violation of the presidential executive order. It needs to stop.”
So — so, what we’re — what we’re doing here is — is — one of the biggest functions of the DOGE team is just making sure that the presidential executive orders are actually carried out. And this is — I just want to point out, this is a very important thing, because the president is the elected representative of the people, so he’s representing the will of the people. And if the bureaucracy is fighting the will of the people and preventing the pres- — the president from implementing what the people want, then what we live in is a bureaucracy and not a democracy.
Q Yeah. You — you’re both aware — you have to be keenly aware that the media and — and the punditry class — not that — you know, I think you’ve proven they have no power anymore, because they threw everything they had at you, and they didn’t win. And that was, you know, the New York Times, Washington Post, three networks, every late-night comedy show, two cable channels — they — they just threw — they threw everything — lawfare, weaponization.
THE PRESIDENT: It’s true.
Q And now I see they want you two to start — they want a divorce. They want you two to start hating each other. And they try — “Oh, President Elon Musk,” for example. You do know that they’re doing that to you?
THE PRESIDENT: Oh, I see it all the time. They tried it, then they stopped. That wasn’t — they have many different things of hatred.
Actually, Elon called me. He said, “You know they’re trying to drive us apart.” I said, “Absolutely.”
You know, they said, “We have breaking news: Donald Trump has ceded control of the presidency to Elon Musk. President Musk will be attending a Cabinet meeting tonight at 8 o’clock.” (Laughter.) And I say — it’s just so obvious. They’re so bad at it.
I used to think they were good at it. They’re actually bad at it, because if they were good at it, I’d never be president because I — I think nobody in history has ever gotten more bad publicity than me.
I could do the greatest things; I get 98 percent bad publicity. I could do — outside of you and a few of your very good friends. It’s, like, the craziest thing.
But you know what I have learned, Elon? The people are smart. They get it.
MR. MUSK. Yeah. They do, actually. Yeah.
THE PRESIDENT: They get it. They really see what’s happening.
MR. MUSK: Yes.
Q And at the end of this interview, I — what I would like is, I — I want people to know the relationship and know more about you.
What is the relationship, Mr. President?
THE PRESIDENT: Well, I respect him. I’ve always respected him. I never knew that he was right on certain things, and I’m usually pretty good at this stuff. He did Starlink. He did things that were so advanced and nobody knew what the hell they were.
I can tell you, in North Carolina, they had no communication. They were wiped out. Those people were — you know, they had rivers in between — land that never saw water, all of a sudden, there was a river and a vicious — like, rapids. People were dying all over. They had no communication.
They said, “Do you know Elon Musk?” And they didn’t really know I knew him. I said, “Yeah.” They said, “Could you get Starlink?” It’s, like, the first time I ever heard of it. I said, “What’s Starlink?” “A communication system that’s unbelievable.”
Q I have it.
THE PRESIDENT: And he — yeah. And he said — I called him, and I said, “Listen, they really need it.” And he got, like, thousands of units of this communication, and it saved a lot of lives. He got it immediately. And you can’t get it. I mean, you have to wait a long time to get it. But he got it to him immediately.
And I said, “That’s pretty amazing.” And I didn’t even know he had it.
We watch the rocket ships, and we watch Tesla.
I think, you know, something that had an effect on me was when I saw the rocket ship come back and get grabbed like you grab a beautiful little baby. You grab your baby. It just —
MR. MUSK: Just hug the rocket.
THE PRESIDENT: I’d never seen —
MR. MUSK: Everyone — right. Everyone needs (inaudible) —
Q You hug the rocket. You hug the rocket.
MR. MUSK: — (inaudible) rockets.
THE PRESIDENT: Yeah. No, but — and he said, “You know, you can’t really have a rocket program if you’re going to dump a billion dollars into the ocean every time you fly. You have to save it.” And he saved it. First time —
Q That’s ever been done.
THE PRESIDENT: — I’ve ever seen that done. Now nobody else can do it.
If you look at the U.S., Russia, or China, they can’t do it, and they won’t be able to do it for a long time. He has the technology. So, you learn — I wanted somebody really smart to work with me, in terms of the country — a very important aspect. Because, I mean, he doesn’t talk about it. He’s actually a very good businessman. And when he talks about the executive orders — and this is probably true for all presidents: You write an executive order and you think it’s done, you send it out; it doesn’t get done. It doesn’t get implemented. They don’t implement it.
They — maybe they’re from the last administration — and they are, in some cases. You try and get them out as fast as you can. But I could — as soon as he said that, I said, “You know, that’s interesting.” You write a beautiful executive — and you sign it and you assume it’s going to be done, but it’s not. What he does is he takes it, and with his hundred geniuses — he’s got some very brilliant young people working for him that dress much worse than him, actually —
MR. MUSK: Yeah, the do.
THE PRESIDENT: — they dress in just t-shirts. (Laughter.) You wouldn’t know they have 180 IQ.
Q Wait. Wait. So, what — he’s — he’s your tech support?
MR. MUSK: I —
THE PRESIDENT: No, no. He is —
MR. MUSK: I actually virtually am tech support.
THE PRESIDENT: He’s much more than that.
MR. MUSK: I actually am tech support, though. But that’s —
THE PRESIDENT: But he gets it done. He’s a leader. He really is a — he gets it done. You get a lot of tech people, and you have people, they’re good with tech, but they — he gets it done.
You know, I said, in real estate, you had guys that would draw beautiful renderings of a building, and they’d draw the rendering, it would be great, and you’d say, “Great. When are you starting?” But they were never able to get it built. They couldn’t get the finances. They couldn’t get the approvals. It would never get done. And then you have other guys that are able to get it done. You know, they could just get it done.
I was in real estate. Same thing in this. He gets it done.
So, when he said that — he said, “You know, when you sign these executive orders, a lot of them don’t get done, and maybe the most important ones,” and he would take that executive order that I’d signed, and he would have those people go to whatever agency it was — “When are you doing it? Get it done. Get it done.” And some guy that maybe didn’t want to do it, all of a sudden, he’s signing — he just doesn’t want to bothered.
Q Does — do a lot of those executive orders have to be codified into law to — do you need the Republican Congress to follow up?
THE PRESIDENT: Yeah, and they will. A lot of them will be. Yeah.
Q They will?
THE PRESIDENT: Look, in the meantime, we have four years. The beauty is, we have four years. That’s why I like doing it right at the beginning. Because an executive order is great. I mean, the one problem — it’s both good and bad, because when they did all these executive orders, I’ve canceled most of them. They were terrible. I mean, we were going to go radical left, communist, okay? It was crazy. Their —
MR. MUSK: Really crazy.
THE PRESIDENT: — executive orders were so bad, if they ever got them codified, you’d never be able to break them. So, the damage that Biden has done to this country — and it’s not even Biden; it’s the people that circled him in the Oval Office, okay? — but the damage they did to this country, in terms of, let’s say, open borders — you know, there’s so many things, but open borders, where millions of people poured into our country, and hundreds of thousands of those people are criminals. They’re murderers. They’re drug dealers. They’re gang members. They’re people from prisons from all over the world.
And we have a great guy, Tom Homan, and he is doing so incredibly. You saw the numbers. They’re down like 96 percent.
Q Ninety-five percent.
THE PRESIDENT: He is a phenomenal guy. And Kristi Noem is doing an unbelievable job. And he wanted her. He said, “She’s so tough.” And I said, “I don’t think of her as that way. You know, she’s very nice.” He said, “No, she’s so tough.” And she is. I see her with the horses. She’s riding the horse. Let’s — (laughter) — she’s great.
But the team we have is — is really unbelievable.
But those executive orders, I sign them, and now they get passed on to him and his group and other people, and they’re all getting done. We’re getting them done.
Q Let me go back a little bit to your background, because —
MR. MUSK: Sure.
Q — it’s beyond impressive. You were the chief engineer, for example — you were an early believer in Tesla. You became the CEO and — and then the chief engineer, which was phenomenal. SpaceX, same thing, which is unbelievable.
I mean, you were the first company — private company to send astronauts successfully into — into space, first private company to send astronauts into orbit.
MR. MUSK: Yeah.
Q That’s — that’s pretty deep.
THE PRESIDENT: He’s going to go into orbit soon.
Q Okay.
MR. MUSK: (Laughs.) Yeah.
THE PRESIDENT: No, he’s going to go to Mars. He’s going to fly on his —
Q Starlink.
MR. MUSK: At some point, yeah.
Q As in (inaudible) —
MR. MUSK: But they say — they always ask me, like, “Do you want to die on Mars?” And I say, “Well, yes, but not on impact.” (Laughter.)
Q Star- — Starlink is in 100 countries.
This is going to be hard. I feel like I’m interviewing two brothers here.
MR. MUSK: You go ahead.
Q Starshield, which could be used for national defense.
MR. MUSK: Yeah, it is already being used for national defense.
Q Then you have a — what is it called? Optimus, a part of Tesla.
MR. MUSK: They’re a robot, yeah.
Q A robotic arm. Then you have an AI arm. And then you have something that really fascinated me, and it’s called Neuralink.
MR. MUSK: Yes.
Q You might help the blind to see and people with spinal cord injuries that they — that they can recover, where in the past — how close is that to becoming a success?
MR. MUSK: At Neuralink we’re — we’ve ha- — we’ve implanted Neuralink in three patients so far, who are quadriplegics, and it allows them to directly control their phone and computer just using their mind, just by thinking. It’s like — so, we call this product Telepathy, so you control your computer and phone just by thinking, and it’s possible to actually control the computer and phone faster than someone who has working hands.
Then the next step would be to add a second Neuralink implant past the point where these — the neurons are damaged, so that somebody can walk again and so the pe- — they can have full-body functionality restored. And —
THE PRESIDENT: And you like Bobby, right?
MR. MUSK: I like Bobby, actually. Yeah. I — I supported Bobby Kennedy. I think he — you know, he’s unfairly maligned as someone who is anti-science. But I think he — he isn’t. He just wants to question the science, which is the essence of the science — the scientific method, fundamentally, is about always questioning the science.
Q Well, they didn’t tell us the truth about COVID.
MR. MUSK: Correct.
Q That’s for sure.
MR. MUSK: Yes.
Q And we learned a lot with the Twitter files. And that just, then, raises a question. You’re the richest man in the world. You may not like that part.
THE PRESIDENT: Yeah.
Q You’re pretty competitive.
MR. MUSK: I mean, it’s neither here nor there.
Q I’ve known you a long time.
MR. MUSK: I don’t think it matters.
Q But —
THE PRESIDENT: That’s why I became president.
Q — he’s on your team.
THE PRESIDENT: (Inaudible) —
Q Well, that’s true. He can’t top that.
THE PRESIDENT: He’s good. You know, I wanted to find somebody smarter than him. I searched all over. I just couldn’t do it. I couldn’t. I couldn’t.
Q You really tried hard.
THE PRESIDENT: I couldn’t find anyone smarter, right? So, we had to — we had to, for the country.
Q But this is the thing —
THE PRESIDENT: So, we settled on — we settled on this guy.
MR. MUSK: Well, thanks for having me.
THE PRESIDENT: (Laughs.) Yeah.
Q So —
MR. MUSK: I’m just trying to be useful here.
Q But this is the interesting — but this is where we are as a so- — a society. And I — I hate to do this to you, but I’m going to do it anyway. You’re doing all of these things. At DOGE, nobody at DOGE gets paid a penny, correct?
MR. MUSK: Well, actually, some people are federal employees, so they do.
Q Oh, okay.
MR. MUSK: Yeah. They’re (inaudible). But it’s fair to say that the software engineers at DOGE could be earning millions of dollars a year and instead of earning a small fraction of that as federal employees.
Q Okay. So, just —
THE PRESIDENT: And they’re very committed people.
MR. MUSK: Yes.
Q So — you’re — you’re committed to helping the blind see, people with spinal cord injuries recover.
MR. MUSK: Yes.
Q You’re committed to getting to Mars. You’re committed to rescue — you’re going to help rescue, next month, two astronauts that I think were abandoned. They — they dispute that in an interview.
THE PRESIDENT: When are you — when are you getting them?
MR. MUSK: At the — at the president’s request, we — or instruction, we are accelerating the return of the astronauts, which was postponed, kind of, to a ridiculous degree.
THE PRESIDENT: They got left in space.
Q They’ve been there. They were supposed to be there eight days. They’re there almost 300.
THE PRESIDENT: Biden.
MR. MUSK: They were put —
Q Yeah.
MR. MUSK: Yes, they were left up there for political reasons, which is not good.
Q Okay, it’s not good. Now, if I had the weight and pressure of doing that successfully on my shoulders, I think I’d be, you know — but you — when we spoke before we did this interview, you were very confident. You think this will be a successful mission.
MR. MUSK: Well, we don’t want to be complacent, but we have brought astronauts back from the space station many times before, and always with success. So, as long as we’re not complacent —
THE PRESIDENT: When are they — when are you going to launch?
MR. MUSK: I think it’s about — about four weeks to
bring them back.
Q About four weeks?
MR. MUSK: Yeah.
THE PRESIDENT: And you have the go-ahead.
MR. MUSK: We’re being extremely cautious.
Q Yeah.
THE PRESIDENT: You now have the go-ahead.
MR. MUSK: Yes. Well, thanks to you —
THE PRESIDENT: They didn’t have the go-ahead with Biden.
Q What’s that?
THE PRESIDENT: He was going to leave him in space. I think he was going to leave them in space.
Q Well, it’s like the (inaudible) —
THE PRESIDENT: He considered it a —
Q — growing up, lost in space.
THE PRESIDENT: Yeah, he didn’t want the publicity. Can you believe it?
Q Unbelievable. And so —
MR. MUSK: Yeah.
Q — I want to echo something that the president said and then ask an overarching question. So, people in — get hit with Hurricane Helene, they have no communication with the outside world. You come to the rescue. You donated that, I believe?
MR. MUSK: Yes. Yes.
Q You donated to the people of —
THE PRESIDENT: He saved a lot of lives. In North Carolina, he saved a lot of lives.
Q And California, after the wildfires?
THE PRESIDENT: California. But, I mean, in North Carolina, where they were really in trouble, they had no communication, people were dying.
Q Nothing.
THE PRESIDENT: They were dying of starvation. He saved a lot of lives in North Carolina.
Q Okay. Now you’re going to rescue astronauts. And now — again, you do — you do all of this — I would think liberals would love the fact that you have the biggest electric vehicle company in the world.
MR. MUSK: Yeah. I mean, I used to be adored by the left, you know.
Q Not anymore.
MR. MUSK: Le- — less so these days.
Q He killed that, huh?
MR. MUSK: I mean, less —
THE PRESIDENT: I really (inaudible) —
MR. MUSK: Well, I mean, this — this whole sort of, like, you know — it was — they call it, like, “Trump derangement syndrome.” And I didn’t — you know, you don’t realize how real this is until, like, it’s — you can’t reason with people.
So, like, I was at a friend’s birthday party in L.A., just a birthday dinner, and it was, like, a nice, quiet dinner, and everything was — everyone was behaving normally. And then I happened to mention — this was before the election, like a month or two before — I happened to mention the president’s name, and it was like they got shot with a dart in the jugular that contained, like, the methamphetamine and rabies. Okay? (Laughter.)
And they’re like, “Whyy?” And I’m, like, “What is wrong — like, guys, like” — you just can’t have, like, a normal conversation. And it’s like — it’s like they become completely irrational.
Q He — he has no idea, if you’re friends with him —
MR. MUSK: Yeah.
Q — you pay a price. You know, it’s like, I walk into a restaurant in New York, and it’s like half the room gets daggers and they want to —
MR. MUSK: The eye-daggers — eye-daggers level is insane. (Laughter.)
I mean, there was, like — I had, like, some — some invitation because — so, I got invited to, like, so- — basically, a big, sort of, damn — damn event like that was — but I’d received the invitation, like, the beginning of last year and then — and I still attended, even after I’d endorsed President Trump, and I didn’t realize how profoundly that would affect, you know, how I was received. (Laughter.)
I mean, I walk into the room and I’m getting just the dirty looks from — from everyone. Like, if looks could kill, I would have been dead several times over.
Q But that was not — (laughter) — before Trump
MR. MUSK: (Inaudible) —
Q Before Trump: “BC” —
MR. MUSK: — ashes on the floor. (Laughs.)
Q — or “BT.” Before Trump, that never happened. Right?
MR. MUSK: No.
Q No. So —
MR. MUSK: I — I just — doesn’t seem strange? Like, what — what is up with this total, like, madness?
Q You’re smarter than me. Can you — I actually think that there’s a level of irrationality. It’s almost like a trigger and —
MR. MUSK: It totally triggers.
Q And it’s like — look, I — I’ve been on TV — this is my 29th year. I’ve been on radio 35 years. I will — I’ve gone hard in the paint to — for candidates that lost.
MR. MUSK: Yeah.
Q And guess what? I get over it.
MR. MUSK. Sure. Yeah, yeah.
Q And I just keep doing my show, and I just — you know, I come back to fight another day.
So, here’s the big — then this is the million dollar or billion dollar — I’m among billionaires — question. So, you have all this going on and you stop, in a way — you’re still doing it — and you partner with him. And this is what you get for it from the Democrats. You get “nobody voted for Elon.” Well, nobody voted for any of your Cabinet nominees. Okay? “People are dying because of DOGE cuts.” I’ll give you a chance to respond to all that. “What DOGE is doing is illegal.” “Elon Musk is” — more street vernacular for a male body part. “It’s a constitutional crisis.”
MR. MUSK: How c- — why — why are they reacting like this?
Q Well, first of all, do you give a flying rip? Number one. And —
MR. MUSK: Well, I guess we must be — if we’re the target, we’re doing something right. You know, if — like, they wouldn’t be complaining so much if they — we weren’t doing something useful, I think.
What — all we’re really trying to do here is restore the will of the people through the president. And — and what we’re finding is there’s an unelected bureaucracy. Speaking of unelected, there’s a — there’s a vast federal bureaucracy that is implacably opposed to the — the president and the Cabinet.
And you look at, say, D.C. voting. It’s 92 percent Kamala. Okay, so we’re in 92 percent Kamala. That’s a lot.
Q Yeah. They don’t like me here either.
MR. MUSK: I think about that number a lot. I’m like, 92 percent. That’s, basically, almost everyone. And so — but if — but how can you — if — if the will of the president is not implemented, and the president is representative of the people, that means the will of the people is not being implemented, and that means we don’t live in a democracy, we live in a bureaucracy.
And so, I think what we’re seeing here is the — sort of, the thrashing of the bureaucracy as we try to restore democracy and the will of the people.
Q You —
MR. MUSK: Is this making sense? I mean — sorry.
Q Y- — no, of course it does. I mean, to me, if you look at our framers and our founders — and you’ve really become a student of history, Mr. President, and we’ve ta- — we’ve had conversations both on air and off air — and if we talk about constitutional order or transformational change, nobody can argue that what’s happening here is going at the speed of light.
But however, what were the principles of our framers and our founders? They wanted limited government, greater freedom for the people — and we’ll get to the specific cutting of waste, fraud, and abuse. That — that is your goal, is it not?
THE PRESIDENT: Yeah. And my goal was to get great people. And when you look at what this man has done, I mean, it was something — I knew him a little bit through the White House. Originally, I’d see him around a little bit. I didn’t know him before that, and I respected what he did. And he fought hard. You know, he was a — he was maybe questioned for a while. He was having some difficulties. It was not easy doing what he did.
I mean, how many people have started a car company and made it really successful and made a better car where it’s, you know, beating these big companies that that’s all they do is cars? I mean, it’s really amazing the things that he’s done.
But I didn’t know it as much then as now. I mean, the fruits have sort of taken hold.
But I wanted great people, and he’s a great person. He’s an amazing person. He’s also a caring person. You know, he uses the word “care.”
So, they sign a contract in a government agency, and it has three months. And the guy leaves that signed the contract, and nobody else is there, and they pay the contract for 10 years.
So, the guy is getting checks for years and years and years, and he’s telling his family, obviously — maybe it was crooked, maybe he paid to get the contract, or maybe he paid that they didn’t terminate him. But, you know, we have contracts that go forever, and they’ve been going for years, and they’re supposed to end in three months or five months or two years or something, and they go forever. So, the guy is either crooked — you know, where he knew this was going to happen — or he’s crooked because he’s getting payments that he knows he shouldn’t be getting.
MR. MUSK: Yeah.
THE PRESIDENT: But they’re finding things like that. They’re finding things far worse than that. And they’re finding billions — and it will be hundreds of billions of dollars’ worth of fraud. I say waste and abuse, but fraud, waste, and abuse. And he’s doing an amazing job.
And he attracts a young, very smart type of person. I call them high-IQ individuals, and they are. They’re very high Q and — high IQ. And when they go in to see the people and talk to these people — you know, the people think they’re going to pull it over. They don’t. These guys are smart, and they love the country. You know, there’s a certain something.
But he uses the word “care.” So, people have to care. Like, when I bought Air Force One —
MR. MUSK: Exactly.
THE PRESIDENT: — I negotiated the price. It was $5.7 billion, and I got it — I got them down $1.7 billion. Now they’re not building the plane fast enough. I mean, they’re actually in default — Boeing. They’re supposed to —
Q When is it —
THE PRESIDENT: They’ve been building this thing forever. I don’t know —
Q This is the new Air Force One?
THE PRESIDENT: — what’s going on.
MR. MUSK: Yeah.
THE PRESIDENT: We don’t build the way we used to build. You know, we used to build like a ship a day, and now to build a ship is, like, a big deal, and we’re going to get this country back on track. We could do it, but so many things — it takes so long to get things built and get things done.
And a lot of it could be something we’ve been discussing. The regulators go in and they make it impossible to build. They make it very difficult to build anything, whether it’s a ship, a plane, or a building or anything. And some of them do it because they want to show how important they are. Some of them do it maybe because they think they’re right. They use the environment to stop progress and to stop things. It’s always the environment. “It’s an environmental problem.” It’s not an environmental problem at all. But they do a lot of things.
And, by the way, speaking of that, Lee Zeldin is going to be fantastic in the position. So important. He could take 10 years to approve or disapprove something, or he could do it in a month. You know, just as good.
Q Sure.
THE PRESIDENT: And I think you’re going to see some fantastic — a fantastic job done by him. He’s a tremendous guy.
Q Newt — you echoed something when I had just met you, and it was very similar to what Newt has been saying, that we’re — he brought this country to the dance. This is the opportunity to be transformational, and to have, I would argue, a — the most consequential presidency if we — if we’d really dig down and do something that had never been done before, and that is get rid of this bureaucracy. And I’m going —
MR. MUSK: Yes.
Q — to get to specifics. You say the same thing. It’s not done yet.
MR. MUSK: Absolutely.
Q And what did you mean by that?
MR. MUSK: Well, I mean the — w- — winning the election is really the opportunity to fix the system. It is not fixing the system itself. So, it’s an opportunity to fix the system and to restore the power of democracy.
And, you know, people — like, it’s funny how — how often it — you — when these attacks occur, the thing that they’re accusing the administration of is what they are guilty of. They’re saying that things are — are being done are unconstitutional, but what they are doing is unconstitutional. They are guilty of the crime of which they accuse us.
THE PRESIDENT: That’s always the first thing they do.
MR. MUSK: Yeah.
THE PRESIDENT: “He’s in violation of the Constitution.” They don’t even know what they’re talking — well, they know.
MR. MUSK: It’s absurd.
THE PRESIDENT: It’s just a con job. It’s a big con job. And they’re so bad for the country, so dangerous and so bad.
And the media is so bad. When I watch MSNBC, which I don’t watch much, but you have to watch the enemy on occasion, the level of arrogance and — and cheating and — they’re just horrible people. These are horrible people.
Q They lie.
THE PRESIDENT: These are horrible people.
Q They tell conspiracy theories.
THE PRESIDENT: They lie, and they start up with the Constitution. They couldn’t care less about the Constitution.
CNN, likewise. I mean, I watched them asking questions with, you know, the hatred with the — why — I said, “What are you asking the question with such anger? You’re asking me a normal question.” But you see the bias. The bias is so incredible. Those two are bad.
PBS is bad. AP is bad. CBS is terrible.
I mean, CBS now — they changed an answer in Kamala. They asked her some questions. She answered them like, you know, a low-IQ person. The opposite of him — the absolute opposite. But she gave a horrible answer. They took the entire answer out, and they put another answer that she gave 20 minutes later into the — in- — as the answer.
Q It was part of her word salad.
THE PRESIDENT: I’ve never even heard of that be- — I thought I heard of it all.
MR. MUSK: Right.
Q That wh- — “60 Minutes” once — one — wanted to do an interview with me, and I said, “Live to tape.”
MR. MUSK: Yeah, exactly.
Q They said, “No.” And I said, “No” —
MR. MUSK: Right.
Q — “No deal.”
MR. MUSK: Exactly. They can- —
Q Like, this interview will —
THE PRESIDENT: I’ve never even heard — you know, I’ve seen where they take a sentence off or something and they’ll do — but they —
Q Sometimes you cut for time o- —
THE PRESIDENT: No, no. They took the entire — this long, terrible statement that she made and put another.
Nobody’s ever seen what’s happening. And, you know, the people that do all this complaining, they’re very dishonest people.
MR. MUSK: Yeah.
Q Yeah. I — I’m going to, just for the sake of saving time —
THE PRESIDENT: Yeah.
Q — because I could spend — and I’ve done this on radio and TV, I — I can spend an hour finding the outrageous amounts of money being spent abroad, like USAID.
MR. MUSK: Sure.
Q And I do want to mention a couple, but I’m going to —
MR. MUSK: Yeah.
Q — scroll it and —
MR. MUSK: Well — well, I guess, at a high level, I think it’s what the president mentioned earlier, which is that in order to save taxpayer money, it comes down to two things: competence and caring. And —
THE PRESIDENT: That’s right.
MR. MUSK: — and when — when president was shown the outrageous bill for the new Air Force One and — and then negotiated it down, if he had — if the president had not applied competence and caring, the price would have been 50 percent higher — literally, 50 percent higher. The president cared. The president was competent. The price was not 50 percent higher as the result.
And so, when you add more competence and caring, you get a better deal for the American people.
THE PRESIDENT: But we could take — we were talking about this yesterday. I could take — give me thousands of bills — any — I could pick any one of them, and I could —
MR. MUSK: Yes, exactly.
THE PRESIDENT: — take all thousand. And let’s say it’s a bill for $5,000 — just $5,000, and it’s done by some bureaucrat. And if he would say, “I’ll give you three. I don’t want to pay you five. It’s too high. I’ll give you three.” But they don’t do that. If a guy sends in a bill for $5,000, they pay $5,000. They expect to be cut. Everybody expects to be cut. When you send in a bill, you expect to be cut. They send in the bill higher, for the most part. This is true with lawyers, legal fees. When they send in legal fees, you — I can cut — I wish I had the time, I would save so — but I could cut these bills in half — much better than half.
But you offer people a much lower number because you know they — they actually put fat — I’m not even saying it’s — it’s like a way of business. They put more on because they expect to be negotiated. When you send in a bill to the government, there’s nobody to negotiate.
MR. MUSK: Yes.
THE PRESIDENT: You send it a bill for $10,000, and they send you a check back for $10,000. If you would call them and said, “We’ll give you five.” “No, no, no. I need more than five.” “We’ll give you a five.” “I’m not going to pay any more than five.” “Make it six.” “No, I’m not going to make it six.” And you’ll settle for $5,500. You’ve just cut the bill almost in half, and it took, like, two minutes. When did that stop? But —
Q (Inaudible) the art of the deal?
THE PRESIDENT: — that’s caring. No, it’s not even the art of the deal. It’s caring. He uses the word —
MR. MUSK: It’s — it’s competence and caring.
THE PRESIDENT: — it’s caring.
Q Yeah.
THE PRESIDENT: It’s — it’s a certain competence, but I think it’s more caring.
MR. MUSK: I — if you —
THE PRESIDENT: (Inaudible.)
MR. MUSK: Actually, if you add either ingredient — either competence or caring — you’ll — you’ll get a better outcome. But it stands to reason —
Q Right. People don’t want to do this (inaudible.)
MR. MUSK: — that’s the reason that if you don’t have competency and you don’t have caring, you’re going to get a terrible deal. And the problem is that the American taxpayer has been — been getting a terrible deal, because — look at the last administration. Can you — can anyone — can any reasonable person say that last administration was either competent or caring?
Q But they lied to us and said that Joe didn’t have a cognitive decline.
MR. MUSK: They fully lied.
Q They said the borders were closed. They said that the borders were secure. They said that —
MR. MUSK: Right.
Q You know, they said Obamacare would save —
MR. MUSK: They flat out lied.
Q They flat out lied —
MR. MUSK: It was insane.
Q — on many occasions.
MR. MUSK: Yes.
Q I tell my audience all the time: Don’t trust government.
MR. MUSK: Yes.
Q So, the — I want — as I scroll this information, and it’s — it’s — I’ll scroll a lot more than I’ll mention to both of you, and this is the cost savings. I want you — I want people at home to understand this part: The average American makes $66,000 a year.
MR. MUSK: Yeah.
Q Okay? We have $37 trillion in national debt.
MR. MUSK: Yes.
Q Now, all the money I’m about to mention and what we’re going to scroll on our screen — and all of this is going to foreign countries. It is not being spent here in America —
MR. MUSK: Yes.
Q — for better schools, law and order.
MR. MUSK: I — I think the average taxpaying American should be mad as hell because their tax money is being poorly spent.
Q I’m mad. It’s stealing from —
MR. MUSK: It’s a — it’s an outrage —
Q — our kids and grandkids.
MR. MUSK: Yes, and the — and people —
THE PRESIDENT: And a lot of fraud, Sean. A lot of fraud.
Q Yes.
THE PRESIDENT: And a lot of kickbacks.
They’re sending money out. They’re not that stupid. These people aren’t that stupid. They’re sending for transgender — something having to do with the opera, and they’re sending out $7 million —
MR. MUSK: (Laughs.) Literally.
THE PRESIDENT: — $7 million. (Inaudible) —
Q You just stole my next line. I can’t believe that.
THE PRESIDENT: No, it’s incredible.
Q I was going to mention that.
THE PRESIDENT: No, but it’s incredible: $7 million.
Now, you know they — they’re not so stupid. They’re sending all this money. They expect to get a lot of it back. And that’s what happens.
Q Okay. So, let’s go through it.
MR. MUSK: Yes, they’re — a bunch of —
Q So, for the average person at home —
MR. MUSK: — this stuff is round-tripping. To the president’s point, they’ll — they’ll make it sound like it’s going to help some people in a foreign country, but then they — then they get kickbacks.
Q All right. Let me go to the ne- — to the fir- —
MR. MUSK: Yeah.
Q — to the second question first. I want to know, because people like Joni Ernst, and — and House —
MR. MUSK: Yeah, Joni — Joni Ernst has been —
Q They tried to get —
MR. MUSK: — has tried for a long time, and she’s actually got a lot of good data. Senator Ernst has been really helpful, actually.
Q Okay, but they — they actually hide what the real purpose of the spending is.
MR. MUSK: That’s true.
Q In other words, they — and — and h- — this is a question: How did you decipher? It will say, “Humanitarian blah, blah, blah in Serbia or Afghanistan.” We’ve been giving money to China for crying out loud, which I think is nuts.
MR. MUSK: Well, we’re giving money to the Taliban.
Q Money to the Taliban?
MR. MUSK: Like a lot.
Q All right. So —
MR. MUSK: (Laughs.) I’m like, for what?
Q But they —
MR. MUSK: I — I want to see pictures of what they did.
Q But they try to obscure it, and — and — but then you got to the bottom line, which is what I’m now scrolling on the screen —
MR. MUSK: Yes.
Q — and that is: $20 million on a Sesame Street show in Iraq; $56 million to boost tourism in Tunisia and Egypt; $40 million to build schools in Jordan; $11 million to tell the Vietnamese to stop burning trash; $45 million for DEI scholarships in Burma; $520 million for consultant-driven ESG investments in Africa; DEI programs in Serbia; the president’s favorite — I’m sure you — you love that taxpayer money was spent on a DEI musical in Ireland or a chan- — transgender opera in Colombia or a —
MR. MUSK: If I could, like, it sounds like —
Q — transgender comic book in Peru.
MR. MUSK: It sounds like — it sounds like how can these things be real? But this is actually what was done.
Q Okay. The — I —
MR. MUSK: It — it sounds like a comedy sketch or something. It’s like —
Q I have 20 pages of this.
MR. MUSK: Right. It’s not — the list is a mile long.
THE PRESIDENT: The one thing you didn’t mention, the media. The media is getting millions of dollars.
MR. MUSK: Yes.
THE PRESIDENT: Now, they say Politico, which is a radical left —
Q Subscriptions.
THE PRESIDENT: — you know, garbage magazine or — or program. I guess they have magazine and they have some — some media of all types. $8 million.
I hear the New York Times got a lot. I hear they get subscriptions — where they have subscriptions but maybe the paper is not sent. I have no idea if that’s true or not, but it’s — they call it subscriptions. Lots of subscri- — to different media, not just the Times — maybe the Times, and maybe not the Times.
Q A million dollars in subscriptions is a lot.
THE PRESIDENT: Well — but — but millions of dollars going to media that’s radical-left, crooked, dishonest media.
MR. MUSK: Well — well, Reuters — this is actually really wild: Reuters got like — something like $10 million for something that was literally titled “mass disinformation campaign.”
Q Well —
MR. MUSK: That was on the purchase order. Well, I — I
thought that was a little bold. (Laughs.)
Q I will tell you what was bold is when you released —
MR. MUSK: I’m like —
Q — the Twitter files.
MR. MUSK: — shouldn’t you at least try to call it something else? (Laughs.)
Q The Twitter files — how they targeted him; how Twitter, at the time, worked closely with the FBI, the CIA; and, even before the release of Hunter’s very real laptop, they were feeding them disinformation. That —
MR. MUSK: Absolutely.
Q — you found all that out.
MR. MUSK: Well, I think —
Q That’s called transparency, right?
THE PRESIDENT: The FBI has to be rehabbed. The FBI —
MR. MUSK: Yeah.
THE PRESIDENT: What’s happened with the FBI and the DOJ is just — their — their stock has gone way down. I mean, their reputation is shot.
Q And intelligence.
THE PRESIDENT: And I think Pam is going to do great. I think Kash is going to do great. I think they have to do great or we have a problem.
But when you look at what they did, the raid of Mar-a-Lago — the raid of Mar-a-Lago — you look at what they did, their reputation is shot.
Q It is.
What — you were going to say, Elon?
MR. MUSK: Well, no, I was going to say that I think probably a — like, a lot of people still —
Q How — how did you find (inaudible)?
MR. MUSK: — still believe, like, the Russia hoax, even though you’ve done a lot to combat that. The — you know, the — the Steele dossier was an incre- — a massive scam that was concocted by Hillary Clinton and her — her campaign.
Q She bought and paid it — for it —
MR. MUSK: Right.
Q — Russian disinformation.
MR. MUSK: There was — it was — the — people still think the — the Russia hoax is real. Like a lot of people s- — because they never — they never heard the counterpoint. I mean — I mean, a bunch of people should be in prison for that. That was a — that was outrageous election interference, creating a fake Russia hoax.
Q How much — if you had to put a number on it, how much do you think you’ve identified waste, fraud, abuse, corruption at this point? And again, we’ve been — we’re going to be scrolling this throughout the program.
MR. MUSK: Well, the — the overall goal is to try to get a trillion dollars out of the deficit. And if we — if we — if the deficit is not brought under control, America will go bankrupt. This is a very important thing for people to understand. A country is no different from an individual, in that if an individual overspends, an individual can go bankrupt, and so can a country.
And — and the out- — the massive waste, fraud, and abuse that has been going on, which is leading to a $2-trillion-a-year deficit, that — that’s what the president was handed on Jan. 20th, a $2 trillion deficit. It’s insane.
Q For this fiscal year?
THE PRESIDENT: Two trill- — yeah. We inherited it.
MR. MUSK: Two —
THE PRESIDENT: Yeah. And inflation is back. I’m only here for two and a half weeks.
Q That was January —
THE PRESIDENT: Inflating is back —
Q — you were there for a week.
THE PRESIDENT: No, think of it, inflation is back. And they said, “Oh, Trump infla-” — I had nothing to do with it. These people have — have run the country. They spent money like nobody has ever spent. They were — they were given $9 trillion to throw out the window — $9 trillion, and they spent it on the Green New Scam, I call it. It’s the greatest scam in the history of the country. One of them. We have a lot of them, I guess. But one of them.
Q Well —
THE PRESIDENT: Dollar-wise, probably —
Q — and DEI —
THE PRESIDENT: — it is.
Q — and wokeism —
THE PRESIDENT: Yeah, yeah.
Q — and transgenderism —
THE PRESIDENT: Well, that’s all part of it. Yeah.
Q — and LGBTQ+.
MR. MUSK: Yes.
Q And, by the way, not in America — other countries, not here.
THE PRESIDENT: You know, the amazing thing is when you see, like, the teaching of DEI: $9 million. How do you spend $9 million to teach no matter what it is?
MR. MUSK: Right.
THE PRESIDENT: You could teach physics.
MR. MUSK: Exactly. Totally.
THE PRESIDENT: You could go to MIT for a lot less.
MR. MUSK: It’s (inaudible) expensive. (Laughs.) Expensive.
THE PRESIDENT: Yeah, the teaching —
MR. MUSK: Expensive BS.
THE PRESIDENT: — of DEI.
Q Well, I think it would be better spent on —
THE PRESIDENT: No, it’s a kickback. It’s got to be a kickback. Nobody is that — nobody could do that. Nobody is —
Q Well, it —
THE PRESIDENT: Nobody is giving — to assess the dialog of an audience coming out of a theater: $4 million.
Q How much do you believe, Elon, you’ve identified in — in waste, fraud, abuse, corruption now? And how much —
MR. MUSK: Well —
Q — do you anticipate you will?
MR. MUSK: Sure. Well, the — I — I think —
THE PRESIDENT: One percent.
MR. MUSK: (Laughs.)
THE PRESIDENT: No, because it’s so massive. It’s — this is —
MR. MUSK: Yeah, exactly.
THE PRESIDENT: — huge money. Huge money. Look —
Q So, what we’ve found now is one percent?
MR. MUSK: Well, we’ve j- — we’ve just gotten started here.
THE PRESIDENT: As good as they are, they’re not going to find some contract that was crooked — you know, crooked as hell. And, I mean, there’s going to be so much that isn’t found. But what is found — I think he’s going to find a trillion dollars.
MR. MUSK: Yeah, I think so.
THE PRESIDENT: But I think it’s a very small percentage compared to what it is. I mean, he could tell you about treasuries; he could tell you about a woman that worked for Biden that became a very wealthy woman while she was working for him. Right?
MR. MUSK: Yeah.
Q Yeah, I know who you’re talking about.
MR. MUSK: I mean, there are some strange situations where people — where, you know, someone’s working for the government earning $200,000 a year, and then, suddenly, they’re worth tens of millions of dollars within a few years. Where’d the money come?
Q How’d they earn it?
MR. MUSK: Yeah.
Q They have a private company on the side?
MR. MUSK: We’re just curious. Like, can you —
THE PRESIDENT: While they were working.
MR. MUSK: Can you show us — because, like, in order to be worth tens of millions of dollars, you’d have to start a company, or you’ve got to get some kind — the compensation has got to come from somewhere. So, how does a civil servant with — earning $200,000 a year suddenly, within a span of a few years, be worth tens of millions dollars?
Q W- —
MR. MUSK: So, I just want to connect the dots here.
Q All right, s- —
MR. MUSK: Maybe there’s a legitimate explanation, but I don’t think so. (Laughter.)
Q So, you know, and this gets to kind of the heart of where I am. I — I looked at your work, and I look at this amount of money, and I get angry. And I don’t get v- — I’m not an angry person.
MR. MUSK: Sure.
Q I don’t get angry. I get a- — I get annoyed sometimes, but I don’t get angry.
And I did live paycheck to bay- — paycheck a part of my life. And I think of, you know, the working men and women in this country that the — 56 percent of which cannot afford a $1,000 emergency after four years of Harris and Biden.
MR. MUSK: Sure.
Q Okay? That is serious, you know, financial trouble. Or they’re putting bare necessities on credit cards.
And I’m looking at this and I’m thinking, well, how much — when we — when all is said and done, we could have written a check or cut the taxes or fixed our schools —
MR. MUSK: Yes. Yes.
Q — or deported these illegals that we keep finding, known terrorists, cartel members, gang members.
MR. MUSK: Yeah.
Q And — and we’re not doing it.
THE PRESIDENT: Sean, the saddest thing is they don’t talk about the individual lines. I could go on your show right now, I could get a list that I have on the beautiful Resolute Desk in the Oval Office, and it’s got 40 points, and all they are is the heading of what this money is.
You don’t have to go deep into it, and you see it’s, you know, all different things and it’s so ridiculous.
I mean, normally, when you look for fraud, you’re looking for one thing out of a hundred. Here, out of a hundred, 95 are going to be bad. I mean, they’re — and they’re so obvious just by the heading.
But they never mention that. They only mention, “This is a violation of our Constitution. This is a” — the word they give, you know, it’s like a sound bite — “constitutional crisis.” It’s a new thing, “constitution-” — But they never mention about where the money is going.
MR. MUSK: Yes. Exactly.
THE PRESIDENT: And when people hear that — I had a very smart man, John Kennedy — he’s actually a very smart man. He said, “Sir, you should just go on television and just read the name of the topic that you’re giving all the money — just the topic that you’re giving this money to, and don’t say anything more,” and he’s right.
MR. MUSK: Yeah.
THE PRESIDENT: And I’ll do it at some point, you know, when —
But they never talk about where the money is going. They just talk about, “It’s a constitutional crisis.”
It’s so sad. And honestly, I think they’re bad people. I used to give them the benefit of the doubt, but you almost think they hate the country. I think they hate the country. They’re sick people.
Q Remember, what they can’t — what they couldn’t accomplish at the ballot box, what they can’t accomplish legislatively, now they’re using the courts.
MR. MUSK: Yes.
Q And they c- — they’re trying to bury you in lawsuits.
THE PRESIDENT: That’s right. You know the good news, though? They’ve lost their confidence. They’re not the same people.
Q I think you’re right.
THE PRESIDENT: They’re — they’re not the same people.
This election was brutal for them. We won every swing state. We won by millions and millions of votes. We won everything. We — all 50 states went up — all 50. It’s never happened.
Q Popular vote.
THE PRESIDENT: Every one. All 50 states went up.
They’ve lost their confidence. I see it. And they’re — they’re just swirling and twirling. They don’t know what the hell is happening. They’re much different. They’re just as mean, but they’re not getting to the point.
Q Why do you invite them into the Oval Office nearly every day?
MR. MUSK: (Laughs.)
THE PRESIDENT: Well, the media — you’re talking about the media.
Q Yeah, your friends in the media.
THE PRESIDENT: The media — no, they’re — you know, the anger that — they ask questions so angry — a question — a normal question. I give them an answer. They — but they — I say, “Why are you so angry when you ask a question?” Just a standard question. And, I don’t know, there’s something —
Q They haven’t had a- — they haven’t been allowed in that office for the last four years, and here you’re giving them access.
Let me go to an area that I think is key, and — and you talked about this in recent interviews, and that is: We don’t need a Department of Education. Okay. And what some people are trying to do is stoke fears that, “Oh, my gosh, my kid is not going to get the money for education.”
THE PRESIDENT: (Laughs.) Yeah.
Q Or “grandma’s Social Security and Medicare.” This was a big promise of yours on the campaign trail.
THE PRESIDENT: Yeah. Yeah.
Q So, I really want to give you both an opportunity to assure the American people you will keep — that money will be allocated for students, but with higher standards. For example, I would assume associated with monies given or vouchers.
THE PRESIDENT: (Inaudible) so much and — and then Elon goes. But, look, Social Security won’t be touched —
Q Won’t be touched.
THE PRESIDENT: — other than if there’s fraud or something — we’re going to find it; it’s going to be strengthened — but won’t be touched. Medicare, Medicaid, none of that stuff is going to be touched. It’s just —
Q Nothing. I want you to —
THE PRESIDENT: (Inaudible) don’t have to.
Now, if there are illegal migrants in the system, we’re going to get them out of the system, and all of that fraud. But it’s not going to be touched.
School — I want to bring school back to the states, so that Iowa, Indiana — all these places — Idaho, New Hampshire — there’s so many places, the states. I figure 35 really run well.
And right now, it’s Norway, Sweden, Denmark, Finland, China — China, can you imagine? — has top — top schools. We’re last.
So, they have a list of 40 countries. We’re number 40. Usually we’re 38, 39, but last time, we were number 40. And what I say is you’ve got to give it back.
So, it doesn’t work.
I’ll tell you what we’re number one in: cost per pupil. We spend more money than any other country by far — it’s not even close — per pupil. Okay? So, we know it doesn’t work.
So, we spend the most and we have the worst — right? — the worst result. When we give that — when we give that back to Indiana, when we give that b- — back to Iowa and back to a lot of the states that run well — they run well, a lot of them — 35, 37, 38 — now, you’re going to have 10 laggards, but you’re going to have 5 real laggards, but that’s going to be okay.
Take New York — you give it to Westchester County, you give it to Suffolk County, you give it to Upstate New York, and you give it to Manhattan — but you give it to four or five subsections. Same thing in California. Los Angeles is going to be a problem, but you’re going to give it to places that run well. We can change education
Now, school choice is important, but that will get care — taken care of automatically.
We want to bring education back to the states. You will spend half the number. And I’m not even doing this —
Q So, you’re leaning more towards grants not vouchers, like to parents?
THE PRESIDENT: I’m not even — I’m not even doing this to save, but you will save. It will cost you much less money. You get a much better education.
If you go to some of these states, you’ll be the equivalent of Norway, Sweden, Denmark — places that really have a good school system. You’ll have — those places will be the equivalent, and your overall numbers will get so much better.
Q Do you want standards associated with the money?
THE PRESIDENT: The only thing I want to do from — from Washington, D.C., is make sure they’re teaching English, reading, writing —
Q Math and science.
THE PRESIDENT: — and arithmetic. Okay?
Q Science? Science might help.
THE PRESIDENT: Okay. A little science. You know —
Q Computers.
THE PRESIDENT: — you’re not going to have much of a problem with that, but that’s it.
Do you know, we have half the buildings — I mean, you look at Department of Education —
MR. MUSK: It’s empty.
THE PRESIDENT: Look at the real estate and the —
MR. MUSK: Yeah.
THE PRESIDENT: — the level. For what? To — to — I mean, for — what do they do?
We have really bad educa- — the teachers — I love teachers. I respect teachers. And, by the way, there’s no reason why teachers can’t form a union. They can do whatever they want to do, if it’s back in the states. So, we’re not looking to hurt the teacher — I’m — I’m going to help the teachers. I think the teachers should be incentivized, because a good teacher is like a good scientist, is like a great doctor.
MR. MUSK: Sure.
THE PRESIDENT: It’s a valuable commodity.
MR. MUSK: Yeah.
THE PRESIDENT: I think they should be incentivized.
MR. MUSK: Yes.
THE PRESIDENT: So, I’m totally for the teachers.
MR. MUSK: Absolutely.
Q I interview a guy a lot on radio. He’s from Wichita, Kansas. And he started —
THE PRESIDENT: Right.
Q — as a medical doctor. Started Atlas.MD, and he’s now — he’s rolled it out nationwide. Concierge care, $50 a month, 24-hour access to a doctor.
THE PRESIDENT: Right.
Q You know, they use a lot of telemedicine now as part of it — very innovative. He negotiates directly with pharmaceutical companies. People — if they have high blood pressure, they walk out with their medicine. They have high cholesterol, they walk out with their medicine. And they pay pennies on the dollar.
You mentioned —
THE PRESIDENT: By the way, forms of that could be done.
Q Forms of that?
THE PRESIDENT: Forms of that could be done.
Q Innovation.
THE PRESIDENT: We got hurt when we didn’t get the vote on Obamacare. I made Obamacare — I had a choice: I could let it rot and win a point, or I could do the best you could do with it. And that’s what I did. We did a great job with it, and we made it sort of work, but it’s lousy. We could do so much better.
And when you say — you go to certain areas, they — they have doctors round the clock. They have great medical care for a fraction of what we’re paying right now.
There are things we could do.
But, look, just overall, this man has been so valuable. I hate to see the way they go after him. They go after him. It’s so unfair. He doesn’t need this. He wants to do this.
First of all, this is bigger than anything he’s ever done. He’s done great companies and all, but this is much — you know, this is trillion — everything’s trillions, right?
MR. MUSK: Yeah. The numbers are crazy.
Q To go back to my original point —
THE PRESIDENT: He can save —
MR. MUSK: Yeah.
Q But let me — give him his $10 million back.
MR. MUSK: Well — well — I — no. So, people ask me, like, “What’s — what’s the — what’s the — what’s, like, the — what’s your biggest surprise in — in D.C.?” And I’m like, “The sheer scale.”
Q It’s massive. So, you love the challenge?
MR. MUSK: Well, I mean, to —
THE PRESIDENT: He’ll never do anything bigger.
MR. MUSK: To the president’s point —
THE PRESIDENT: That’s the only thing you can say, “He’ll
never do anything” —
MR. MUSK: But, I mean, you do something slightly better, and you save billions of dollars for the American taxpayer — just slightly better. Slightly. (Laughs.)
Q When you say “tech support” —
MR. MUSK: You go one percent better, and it’s, like, you know, tens of billions of dollars saved to the American taxpayer.
Now, if I may address the point that you — the question you asked earlier, which is, you know, how do we assure people that —
Q They want to know.
MR. MUSK: Yeah, how do we assure people that we’re going to do the right thing, that their — that their Social Security benefits will be there, that their — the medical care will be good and s- — and — in fact, how do we make it — ensure that there’s better medical care in the future? How do we improve their benefits? How do we make sure that their Social Security check goes further than it did in the past and not — it doesn’t get weakened by inflation?
So, the — if we — if we address the — the massive deficit spending, the sort of — the — the waste in the government, then — then we can actually address inflation.
So, provided the economy grows faster than the money supply, which means you stop the government overspending and the waste, and the output of real useful goods and services exceeds the increase in the money supply, you have no inflation.
Q Yeah.
MR. MUSK: And — and you also drop the — the interest payments that people pay, because if the government keeps —
Q Way too high.
MR. MUSK: Yes. The — the reason the interest payments are so high is because the — the national debt keeps increasing. So, the — the government is competing for — to sell debt with — for — with — with the private citizens. This drives up the interest rate.
So, if you have a — if you have a — if you cut back on the deficit, you actually have an amazing situation for people, because you get r- — you get rid of inflation and you drop the interest rates. And that means people’s mortgage payments go down, their credit card payments go down, their car payments go down, their student loans go down. Everything — their — their life becomes more affordable and they’re standard of living improves.
Q How quickly? Because I think people are suffering now. We’re still living under the Biden-Harris economy.
THE PRESIDENT: But, Sean, you have states right now —
Q Yeah.
THE PRESIDENT: You have some states that operate that way. They operate as well as any corporation. They really operate well.
MR. MUSK: Yeah.
Q Florida.
THE PRESIDENT: They have surpluses. They ha- — they don’t —
MR. MUSK: Texas is — has a surplus, for example.
Q Yeah.
THE PRESIDENT: When they — when they look at New York and — and California and some of these places that should have an advantage — I mean, there’s a big advantage — or Pritzker does such a bad job in Illinois; it’s horrible how bad he is — and they don’t have that advantage.
You know, New York has stock exchange and a lot of things. And California has the weather and the beautiful water and all the thing- —
MR. MUSK: California has — has great weather. The most expensive weather on Earth.
THE PRESIDENT: Yeah. (Laughter.) But — but —
Q I like Florida.
MR. MUSK: Yeah.
THE PRESIDENT: But some states operate the way he’s talking about.
Q Efficiently.
THE PRESIDENT: When you go into some of these states, you’re going to find very little. You’re going to find almost nothing. They really operate well — big surpluses, low taxes. And —
Q You know, my taxes went up the first time you were president, because you took away the SALT deduction —
THE PRESIDENT: I — well, I did.
Q — which, by the way, I thought was the right decision.
THE PRESIDENT: It was the right decision — in fact, Reagan tried to do it — because it rewards badly run states.
But at the same time, it’s a tough — it was — it’s tough for the states. I mean, it really is tough for the states.
The sad part is it rewards really badly run states.
Q Yeah.
THE PRESIDENT: And Reagan tried to do it. He was unable to do it. I got it done.
Q You got it done, and —
THE PRESIDENT: And now we’re going to give some back.
Q A little bit.
THE PRESIDENT: Because you know what? We’ve got to help them.
Q It’s only a little.
THE PRESIDENT: We’ve got to help.
Q Because otherwi- — we’re encouraging people to elect high taxes, spen- —
THE PRESIDENT: Nobody had any idea it would be that devastating. I did the right thing. I got something that Reagan couldn’t do. I got it done, where everybody is — are the same. But you know what? We’ve got to help them out.
Q Reagan had the Grace Commission, some of the best business minds in the country.
THE PRESIDENT: Right.
Q And they came up with recommendations. Congress adopted none of them, and none of them were implemented.
I’ve got to ask this question, because the media is obsessed about it: What — what if there is a conflict? In other words, because you do business — it was funny, when it came out the other day, that there was going to be, I think, $400 million — billio- — I don’t know if it was millions or billions — a lot of money on Teslas that Joe Biden’s administration w- — did with Tesla, and —
MR. MUSK: I’m not familiar with that.
Q You’re not even familiar with it? But —
MR. MUSK: I — I don’t think — are you talking about, like, the Inflation Reduction Act stuff or —
Q It was some — it was a purchase order of Tesla vehicles.
MR. MUSK: Oh. Oh, that was — that was incorrect. There was s- — like, there’s some sort of — the media claim that there was, like, $400 million worth of Cybertrucks —
Q That was it.
MR. MUSK: — being bought by the DOD.
Q And that he gave it to you.
MR. MUSK: No — well, first of all, that was —
THE PRESIDENT: No, actually, it was —
MR. MUSK: Th- — it was fa- —
THE PRESIDENT: It was Biden.
Q It was Biden.
THE PRESIDENT: And you know Biden wouldn’t give him much.
MR. MUSK: But — but it wasn’t even — it was fake news, six weeks to Sunday. Tesla is not getting $400 million for Cybertrucks. And the — and the — and this alleged —
Q That’s what it was, Cybertrucks.
MR. MUSK: This — yeah. This alleged award occurred in December, before the president took office. So, it’s — it’s fake on multiple levels. There i- — Tesla isn’t getting $400 million. And even if it — even if it was, which it isn’t, it was awarded during the Biden administration.
Q Okay, but you’re — you — you —
MR. MUSK: It’s total fake news.
Q There — there is —
MR. MUSK: It’s fake on, like — it’s like multiple leverals —
Q There is some integration —
MR. MUSK: — multiple layers of fake.
Q So, you’re — you’re tasked now — and I pray to God this is successful. I really do. I wish you Godspeed.
MR. MUSK: Yeah.
Q You know, “Godspeed, John Glenn.”
THE PRESIDENT: It’s — it’s going to be, by the way. I really believe it’s going to be.
Q But — but there —
MR. MUSK: Oh, yeah.
Q But there are legitimate areas —
THE PRESIDENT: Because the country is going to do well beside this.
This is cutting. We’re only talking about cutting.
We’re also going to make a lot of money. We’re g- — we’re taking in so much money.
Q But what about his business? What if — if there is —
THE PRESIDENT: Then we won’t let him do it.
Q — a contract he would otherwise get?
THE PRESIDENT: We’re not going to let him do it. He — if —
Q You’re not going to let him do it?
THE PRESIDENT: If he’s got a conflict — I mean, look — he —
Q Y- — now y- —
THE PRESIDENT: He’s in certain areas — I mean, I see this morning — I didn’t — I didn’t know, but I said, “Do the right thing” — where they’re cutting way back on the electric vehicle subsidies.
MR. MUSK: Yes.
THE PRESIDENT: They’re cutting back.
Q You’re losing —
THE PRESIDENT: Not only cutting back —
Q It hurts you.
MR. MUSK: Correct.
THE PRESIDENT: Yeah.
Now, I will tell you —
Q You don’t care?
MR. MUSK: Well —
THE PRESIDENT: He’s probably not that happy with it, but that would have been one thing he would have come to me and said, “Listen, you got to do me a favor. This is crazy.” (Laughter.) But this was in the tax bill. They’re cutting back on the subsidies.
I didn’t — I wasn’t involved in it. I said, “Do what’s right, and you get” — and they’re coming up with the tax, but it’s just preliminary.
But I mean, if he were involved, wouldn’t you think he’d probably do that? Now, maybe he does better if you cut back on the subsidies. Who knows. Because he figures — he does think differently. He thinks he has a better product, and as long as he has a level playing field, he doesn’t care what you do —
MR. MUSK: Exactly.
THE PRESIDENT: — which he’s very — he’s told me that.
MR. MUSK: Yeah. I mean, I haven’t asked the president for anything ever.
THE PRESIDENT: It’s true.
Q And if it comes up, how — how will you handle it? (Inaudible.)
THE PRESIDENT: He won’t be involved.
MR. MUSK: Yeah, I’ll — I’ll re- — I’ll recuse myself if it is a conflict.
THE PRESIDENT: If there’s a conflict, he won’t be involved.
MR. MUSK: Yeah.
THE PRESIDENT: I mean, I wouldn’t want that, and he won’t want it.
MR. MUSK: Right. And — and also, I’m getting a — sort of a daily proctology exam here. You know, it’s not like I’ll be getting away from something in the dead of night.
Q Welcome to D.C. If you want a friend, get a dog.
MR. MUSK: Well, I do have a dog, but I also have friends. (Laughter.) My dog loves me, poor little creature.
THE PRESIDENT: You know the truth was —
MR. MUSK: I need to bring him to D.C.
THE PRESIDENT: He’s — I know every businessman. I know the — the good ones, the bad ones, the smart ones, the lucky ones. I know them all. This guy is a ver- — he’s a brilliant guy. He’s a great guy. He’s got tremendous imagination and scientific imagin- — far beyond — you know, you keep talking about a technologist and all, but you’re much more than a technologist. You are that. But he’s also a good person. He’s a very good person, and he wants to see the country do well.
And I know a lot of great businesspeople, really great business people, but, you know, they’re not really, in some cases, very good people. And I know people that would try and take advantage of the situation.
This guy is somebody that really cares for the country, and I saw that very early on. I saw it, really, a long time ago when I got to know him. He’s a very different kind of a character.
That’s why — you know who loves him: young people that are very smart and that love the country. He’s got, like, a tremendous following, because that’s what he’s — he’s a good person.
And he doesn’t need this. He didn’t need this, and he’s doing this to help the country. If I didn’t win this election, this country was — I don’t think it could have made it. I don’t — I mean, we’re allowing criminals — millions of criminals into our country, where everything is transgender, it’s men playing in women’s sports.
I mean, none of this stuff — you could go — I could give you a hundred things. It’s almost like they’re trying to destroy the fabric of — of the country, of the world, because the world was following us. Now the world is following us out of this pit.
We’ve done a lot. I’ll tell you what, in three weeks, we’ve done more — I think we’ve done more — in — in terms of meaningful, not just dollars — than maybe any president ever. And a lot of people are saying that.
Q Shock — it’s been shock and awe.
THE PRESIDENT: I mean, if we can keep it going at this level, this country is going to be at a level that it’s never seen before.
Q You know one of the things you did that I really thought was pretty clever and smart and fair, and that was reciprocal tariffs.
THE PRESIDENT: Yeah, reciprocal.
Q Ta- — I didn’t know India charged so much. I didn’t know the European Union to charge them.
MR. MUSK: Yeah, totally.
Q I didn’t know Canada was charging us.
THE PRESIDENT: Everybody. Everybody. Everybody but us.
Q Brazil, why?
THE PRESIDENT: And I was doing it — you know, I charged China tariffs. I took in hundreds of billions of dollars, and I was doing that. But when we got — we had the greatest economy in history. But then we got hit with COVID, and we had to solve that problem, because I was doing it — and now I said, I want to come back and do the recipri- — because every country in the world almost — we have a deficit with almost every country — not every one, but just about, pretty close.
And — but every country in the world takes advantage of us, and they do it with tariffs. They makes — make it — it’s impossible for him to sell a car, practically, in, as an example, India. I don’t know if that’s true or not, but I think —
MR. MUSK: The tariffs are like 100 percent import duty.
THE PRESIDENT: The tariffs are so high —
MR. MUSK: Yeah.
THE PRESIDENT: — they don’t want to — now, if he built the factory in India, that’s okay, but that’s unfair to us. It’s very unfair.
And I said, “You know what we do?” I told Prime Minister Modi yesterday — he was here. I said, “Here’s what you do. We’re going to do — be very fair with you.” They charge the highest tariffs in the world, just about.
Q 36 percent?
THE PRESIDENT: Oh, much — much higher.
MR. MUSK: It’s 100 percent on — auto imports are 100 percent.
THE PRESIDENT: Yeah, that’s peanuts. So, much higher. And — and others too. I said, “Here’s what we’re going to do: reciprocal. Whatever you charge, I’m charging.” He goes, “No, no, I don’t like that.” “No, no, whatever you charge, I’m going to charge.” I’m doing that with every country.
MR. MUSK: It seems fair.
Q Don’t you —
THE PRESIDENT: (Laughs.) It does.
MR. MUSK: It’s — it’s like fair is fair.
THE PRESIDENT: Nobody can argue with me. You know, the media can’t argue — I said — they said, “Tariffs — you’re going to charge tariffs?” You know, if I said, like, 25 percent they’d say, “Oh, that’s terrible.” I don’t say that anymore —
Q Can I — (inaudible) —
THE PRESIDENT: — because I say, “Whatever they charge, we’ll charge.” And you know what?
Q They stop.
THE PRESIDENT: They — then they say, “Oh, that sounds fair.”
MR. MUSK: All the president is saying is that —
Q (Inaudible.)
MR. MUSK: — it needs to be at a level playing field and — and fair and square.
Q Yeah. And how does — how —
THE PRESIDENT: And we’re going to make a lot of money and a lot of businesses are going to come pouring in.
MR. MUSK: How can you argue with a fair and square situation?
Q Don’t — don’t you think most of them will look at the — the — for example, without America, China’s economy will tank. They need our business.
THE PRESIDENT: They do. Everybody needs us.
Q Everybody needs it.
THE PRESIDENT: And you know what?
Q Do- — don’t you think they’ll stop?
THE PRESIDENT: We only have so long left where we’re in this position. We’re the bank, and the bank is getting smaller and smaller and smaller. We — we’re the bank. We got to do this now. We can’t wait another 10 years and have a shell of a country left, because that’s what was going to happen.
Q Mr. President —
THE PRESIDENT: This country — if I didn’t win this election and have people like this man right here that really do care, because that’s the other word — if you don’t care, you could be the smartest guy in the world, it’s not going to matter. But if we didn’t win this election, I’m telling you, we would not have had a country for very long.
Q How quickly —
MR. MUSK: May I say —
Q — do you balance the budget and — and when do we start paying down that debt?
THE PRESIDENT: Well, potentially, very quickly, between what he’s doing and with income coming in from tariffs and other things. I mean, I hope we can — I don’t want to give a date, because then these people are going to say, “Oh, well, he didn’t make the date.” But I think we can do it very quickly.
We would have never done it if this didn’t happen. Never. It would have never been — it would only get worse and worse, and ultimately, it would have exploded.
This country was headed down a very bad track. And the whole DEI thing, that was — that was a trap. That was a sick trap.
Q (Inaudible.)
MR. MUSK: (Inaudible.)
THE PRESIDENT: And, you know, we’ve destroyed that. That’s gone. That’s pretty much gone.
Q I agree.
MR. MUSK: (Inaudible) —
Q We’re not — we’re not funding it.
MR. MUSK: If — I really want to — I really want to emphasize to people that — this is a very important point — if we don’t solve the deficit, there won’t be money for medical care. There won’t be money —
THE PRESIDENT: Right.
MR. MUSK: — for Social Security. We either solve the deficit or all we’ll be doing is paying debt.
Q Nobody —
MR. MUSK: It’s — it’s got to be solved, or there’s no medical care, there’s no Social Security, there’s no nothing. That’s got to be solved. It’s not optional. America will go bankrupt if this is not done. That’s why I’m here.
Q The president’s —
THE PRESIDENT: Europe takes advantage of us.
MR. MUSK: And — and I’d like to also just send a message — like, because, as the president said, like, this — there’s a lot of rich people out there. They should be caring more about the country because — the reason they should be caring about — more about country is: America falls, what do you think is going to happen to your business? What do — what do you think — do you think you’re be going to be okay if — if the ship of America sinks? Of course not.
Like, what — what I’m doing here, what the president is doing is it’s just long-term thinking. The ship of America must be strong. The ship of America cannot sink. If it sinks, we all sink with it.
THE PRESIDENT: Sean, you’re a —
Q This is what — this is what drives you?
MR. MUSK: Yes.
Q This is important. It says “tech support.” So, you’re not trying to be president, as the media suggests. You are really here because your heart and your passion is this. And the president described you as being — this is the biggest thing you ever done. Now you trying to bring sight to —
THE PRESIDENT: There could be nothing bigger. There’s nothing —
Q You’re sending ships up to Mars — you know, spaceships up in the sky all the time —
THE PRESIDENT: That’s peanuts.
Q — and saving astronauts. That’s pretty big.
THE PRESIDENT: That’s peanuts compared to what we’re talking about.
Q It’s peanuts?
THE PRESIDENT: Yeah.
Q Do you agree with that?
MR. MUSK: Well, it’s esse- — it’s essential that America be healthy, that America’s economy be strong. And — and if that — if — basically, like, my concern is like, if — if — America is the central pillar holding up Western civilization. That pillar must be strong. If that pillar falls, the whole roof comes crashing down.
THE PRESIDENT: Including his ships.
MR. MUSK: There’s no place to hide.
THE PRESIDENT: Including his ships going up.
MR. MUSK: There’s no place to run.
THE PRESIDENT: Nothing. There’s nothing left.
Q Why — why, if this is your goal, your motivation, you’re losing money in the process, you’re offeri- — you do all these nice things for people for free; you’re trying to solve, you know, blindness; you’re going to rescue astronauts; you help the people in North Carolina, California; you’re cutting money that was sent abroad that’s not helping the American people, then why the rage —
MR. MUSK: Actually, I think it was like —
Q But why this rage?
MR. MUSK: — it was not helping the American people and hurting people overseas, to be clear.
Q Why this rage against you now? First, they hated him. Now they hate both of you.
MR. MUSK: Well, I think we’re seeing an antibody reaction from — from those who are receiving the — the wasteful and fraudulent money.
Q They’re being exposed.
MR. MUSK: Yes.
Q Nobody wants to be exposed when you’re corrupt.
MR. MUSK: I’ll — I’ll tell you a lesson I learned at PayPal. You know who complained the loudest — the quickest and the loudest and with the most amount of righteous indignation? The fraudsters. That’s who complained first, loudest, and — and they would generally have this immense overreaction. That’s how we knew there were the fraudsters. That’s how we knew. There’s a tell.
Q What di- — I’ve never — I’ve never met you before today.
MR. MUSK: Yeah.
Q And it’s nice to meet you, by the way. Thank — thank you for doing this.
You guys are really friends. I could s- — you guys — I could see you kicking up your shoes.
THE PRESIDENT: Well, he doesn’t do this kind of thing. And the way I figured that you’d get to know him is if I did it with him. I said, “Come on, let’s do it together.” He doesn’t do this.
I think he’s smarter not doing it, overall. Because, you know, I mean, he’s done very well without doing it. But he doesn’t feel it’s really worthwhile. He wants the product to speak for itself, or whatever he does speak for itself. But he views it as — you know, does it matter?
And I’m doing this with you today because I wanted to have people understand him. And I think it’s very important — I disagree with him. I think it’s very important that they do understand him.
He doesn’t need this. He doesn’t need it. Now, I happen to think it’s made him very popular. I think it — he’s more popular now because there are so many people — you know, you’re talking about the radical left — they have the lowest ratings. MSNBC is dying. CNN is dying. They’re all dying. The New York Times is doing lousy. The Washington Post is doing horribly. They’re all doing badly because people don’t buy it anymore.
But I think it was important that he do this one interview. You’ve been a very fair guy. I think you were the right guy to do it. If we could get some radical left guy — and he’d do just as well, frankly, because it’s all about common sense.
Q They would attack him —
THE PRESIDENT: But this — Sean —
Q — as being unconstitutional, not — a fascist.
THE PRESIDENT: — to me this was a — it was important for people to understand, he’s doing a big job. He’s doing a very thankless job. He’s doing a thankless job, but he’s helping us to save our country.
Our country was in serious trouble, and I had to get the best guy, somebody with credibility, because if he were just a regular, good — very good, solid businessman, he wouldn’t have the credibility. He’s got the best credibility for this.
And people also know he’s an honest guy. He’s an honest guy. He’s just a very, very smart guy who’s done amazing things. And this will be the biggest thing he’s ever done, because, you know, his companies are all great. But if this country goes bad — I guess where he is a little selfish is this. He knows one thing and probably doesn’t think — but if his — if this country goes bad, his stuff is not going to be worth very much, I can tell you.
MR. MUSK: Well, I’d say, if the — if the ship of America sinks, we’re all go- — going down with it. You know, this idea that people can escape to New Zealand or some other place is false. If the central pillar of Western civilization that is America falls, the whole roof comes crashing down and there is no escape.
Q It’s amazing, since you’ve been elected, to watch Canada, Mexico, Venezuela, Colombia — I — I was shocked at the statements that Vladimir Putin made about you. I — I was shocked at the hostage release. I was shocked that Venezuela had done it — had done it. Zelenskyy wants a deal. Putin wants a deal.
THE PRESIDENT: All good statements.
Q King Abdullah was interested.
THE PRESIDENT: You mean by that all good statements. Look, they respect the president of this country. They respect — they did not respect the last president. They laughed at him, and they laughed at our country, and he’s done great damage to our country.
Q Have foreign leaders told you what they thought of Biden?
THE PRESIDENT: Yeah, they have, but I’d rather not say. They — they have. It’s not — it — look —
Q It’s the obvious.
THE PRESIDENT: He was not George Washington, let’s put it that way.
MR. MUSK: (Inaudible.)
THE PRESIDENT: Not the greatest.
Q Sorry, if that’s (inaudible).
THE PRESIDENT: He’s done a tremendous disservice.
Q Will you be here —
THE PRESIDENT: And, by the way, the Democrats have done a great disservice, and they ought to get their act together and use a little judgment, and they ought to work with us on straightening out this mess that —
Q Who? John Fetterman?
THE PRESIDENT: — a lot of people have —
Q Maybe? Who — what Democrat is not radicalized?
THE PRESIDENT: Actually, you mention John.
Q John Fetterman.
THE PRESIDENT: He’s become the best voice in the Democrat party. You know, I had lunch with him, and I thought he was terrific, but he’s a much different man than he was before he had this difficulty. He used to be radical left, and I think he became much smarter, actually. He’s really — he’s really a voice of reason.
But the Democrats have to get together. They have to get their act together, because the stuff they — they talk about makes no sense. It makes — none whatsoever. And they must know it. They must know.
MR. MUSK: Yeah. I mean, like, the country has spoken very clearly and rejected the core tenets of the Demo- — Democratic Party. The country voted t- — fo- — I mean, the country made the — America has made its vote clear. The president won the popular vote decisively. The Republicans won the House. Repub- — Republicans won the Senate. What more do you need?
The Democratic Party needs to take a hard look in the mirror and — and change their ways.
Q I think they went from shock, denial, into the depression stage of grief, and now they’re in the rage stage, where I anticipate they’ll stay for four years, and if they get the chance, they’ll want to impeach him 10 times. Do you anticipate you’ll be here in four years? My last question.
MR. MUSK: I’ll — I’ll be as helpful as long as I can be helpful.
THE PRESIDENT: That’s a good question. I mean, I was thinking about that just now. I said, “I wonder how long he’s going to be doing it.” You can’t get somebody like this. He cares, and he’s brilliant, and he’s got energy.
You need energy, also, in addition to those other things.
You know, I have a lot of guys that are very smart, but they have no energy. They want to sleep all day long. You need a lot of energy. He’s got a lot of energy. He’s doing a great job.
If there’s any conflict, he — he will stop it. But if he didn’t, I’d stop it. I’d see if there’s a conflict. I mean, we’re talking about big stuff.
But he’s under a pretty big microscope.
MR. MUSK: Yeah, seriously.
THE PRESIDENT: I mean, everybody is watching him. If there’s a conflict, you’re going to be reading about it within about two minutes after the conflict.
MR. MUSK: Exactly. There — there’s — the possibility of me getting away with something is 0 percent — 0.0. I — I’m scrutinized to a ridiculous degree.
And — and the other thing is that we — you know, what — what’s — you know what’s better than saying “trust — trust me” is just full transparency. So, what we’re doing with — with the DOGE — DOGE dot — just go to DOGE.gov. You can see every single action that’s being taken.
And now –and I want to be clear, we are going to make some mistakes. We’re not going to be perfect. Nobody bats a thousand. But we’re going to fix the mistakes very quickly. That’s what matters: not that you don’t make mistakes, but that you fix the mistakes very fast.
THE PRESIDENT: And you’re going to ask the other side, when they talk about, “This is a constitutional crisis,” you got to a- — what are they paying for? Where are those tax — because when you read off the list of things, it’s a big con job. See, when they talk Constitution —
MR. MUSK: Totally.
THE PRESIDENT: — it’s a total con job.
MR. MUSK: Yes.
THE PRESIDENT: They never talk — and I watch some of the shows —
MR. MUSK: It’s specifics — they avoid specifics.
THE PRESIDENT: Yeah, when you start talking about how did — how come they spent money on transgender here and transgender there —
MR. MUSK: Yeah, totally.
THE PRESIDENT: — and all the stuff in some country that nobody ever heard of, they don’t want to talk about it. They just talk about, “This is a constitutional crisis.”
Q It shocks the conscious.
THE PRESIDENT: The money is being squandered purposely — tremendous theft, tremendous kickbacks, everything — and we’re straightening it out. And thank goodness. I look up, and I say, “Thank you,” because I think if it went on for four more years, it would not be salvageable. You wouldn’t be able —
MR. MUSK: Absolutely.
THE PRESIDENT: You wouldn’t be able to save it.
Q You believe, too, that when you were in Butler, came within a millimeter being assassinated —
THE PRESIDENT: Yeah.
Q The day you endorsed him, that was that day.
MR. MUSK: Yes.
Q But you had been planning on it?
MR. MUSK: Yeah.
Q Pretty — I think everybody will never forget that iconic blood on your face. “Fight, fight, fight.” I actually was afra- — watching it and thought you might drop again. You know, I didn’t know if it had hit you. You can sometimes get up and then the blood starts to accumulate. It was scary — pretty scary.
MR. MUSK: Well, I mean, th- — this is how you know someone’s true character, because everyone can say they’re brave, but the president was actually shot. Okay? Courage under fire. “Fight, fight, fight,” blood streaming down the face. That’s true courage. You can’t fake that.
Q Yeah. Thank you both.
Mr. President, thank you, sir.
THE PRESIDENT: Thank you very much.
Q Appreciate it. Elon, thank you for your time. Really nice to meet you.
END 1:01 P.M. EST
Source: United Nations secretary general
HE Amb. Tesfaye Yilma Sabo, Permanent Representative of Ethiopia to the United Nations,
HE Amb. Maurizio Massari, Permanent Representative of Italy to the United Nations,
Excellencies, distinguished delegates,
Ladies and Gentlemen,
It is a real pleasure to join our Permanent Representatives and welcome you all today.
As you all know transforming our food systems is essential to driving progress across the Sustainable Development Goals and delivering for everyone, everywhere – sufficient, nutritious food – now and in the future, particularly as we go towards the five years to deliver on the 2030 Agenda.
That is why, in 2021, the UN Secretary-General convened the UN Food Systems Summit. This established the foundation for a new, integrated approach to food systems—placing food at the heart of our efforts to address poverty, zero hunger, inequality, climate change, and biodiversity loss.
It has reshaped the global narrative, building an engine of transformation that recognizes food systems as a key lever to accelerate and reinforce SDG progress.
Building on this momentum, the first Summit Stocktake, hosted by the Government of Italy in 2023, reaffirmed strong political will among nations. Countries pledged to increase the pace of their efforts towards sustainable, inclusive, and resilient food systems transformation.
But it also highlighted persistent gaps and challenges. Among them, an urgent need to enhance public-private-community partnerships, and strengthen private sector engagement.
These crucial issues identified at the first stocktake, resulted in the UN Secretary-General’s Call to Action.
The Call identified six critical areas for concerted action, including: securing concessional finance, investments, budget support, and debt restructuring. It also emphasized addressing food security in crisis situations.
The proposed SDG stimulus – of $500 billion a year – was recognized as a game-changer, offering fiscal space and resources, including through SDR rechannelling.
Finance was emphasized as a critical component of food systems transformation, along with support of our Multilateral Development Banks in unlocking investments in this field.
Given the global context riddled with challenges of rising living costs, social inequalities, climate change, and geopolitical tensions, we will need all hands on deck to reach food systems transformations with the impact to advance on the 2030 Agenda.
Now, in just over five months, Addis Ababa will host the Second United Nations Food Systems Summit Stocktake.
We are grateful to the Government of Ethiopia for hosting this important event and for making our commitment to take the second stocktake to a developing country, a reality. Worth noting also is its leadership and extensive work on its policy environment, infrastructure development and the production of food that engages small holder farmers across the country. We are grateful to Italy, which has agreed to co-host, for its legacy and continued leadership and support to food systems transformation. It is important that we see leadership and sustainability of that support at country level.
The Stocktake will be different, it has to be, in response to many of the requests for us to have more focus and impact.
First, we will be reflecting on progress since 2023, with a Report from the system, but also a shadow report from our stakeholders.
Second, we will be partnering to track commitments and outcomes through national food systems pathways to accelerate SDG implementation.
And third, unlocking investments to sustain and scale transformative initiatives aligned with the SDGs.
In preparations for the Stocktake, we are committed to an inclusive, cross-sectoral efforts and consultations.
We will hold a second briefing in Nairobi next week engaging UN Headquarters in Nairobi, Rome and Geneva.
In addition, we will hold five regional briefings, on the margins of the United Nations Regional Forums on Sustainable Development, from March to May.
We will also be engaging all our Resident Coordinators in UN Country Teams, at the country level so that they are fully engaged with our member states in bringing to Addis Ababa, the progress and of course, the challenges and opportunities.
At the same time, we will push progress towards food systems transformation, including through important gatherings this year – the Fourth Financing for Development Conference in Spain, UNFCCC COP 30 in Brazil, the Second World Summit on Social Development in Qatar, and the Third United Nations Ocean Conference in France.
These are all critical platforms to drive progress, harness collective action and create new investment opportunities.
As Member States, you are at the forefront of this transformation. Your leadership and coordination will be instrumental in ensuring that the Stocktake inspires real action at the national level.
The United Nations is with you –committed to creating sustainable, inclusive, healthy and resilient food systems everywhere, across all our regions, reaching everyone.
We thank you for this important opportunity that will help us to shape the Stocktake in Addis Ababa in July.
US Senate News:
Source: United States Senator for Alabama Tommy Tuberville
Legislation would prohibit the sale of agricultural land to Iran, North Korea, China, and Russia
WASHINGTON – Today, U.S. Senator Tommy Tuberville (R-AL) and U.S. Senator Jim Banks (R-IN) reintroduced the Protecting America’s Agricultural Land from Foreign Harm Act, which would prohibit the sale of U.S. agricultural land to any individual or entity tied to the governments of Iran, North Korea, China, or Russia. The legislation follows Senator Tuberville’s recent reintroduction of the Foreign Adversary Risk Management (FARM) Act to better vet foreign purchases of America’s farmland.
1819 News first reported the reintroduction of the bill.
“For too long, we’ve sat by while foreign nations have been trying to take over our nation’s agricultural industry,” said Senator Tuberville. “Our adversaries are always looking for any way to get their foot in the door and jeopardize our national security—including our agricultural assets. There’s no reason why foreign adversaries should be allowed to buy American farmland. Not only is it dangerous for our farmers, but it’s disastrous for our national security. It’s past time to take action to protect our American farmers and consumers from threats to our food security. I’m proud to reintroduce this legislation with Senator Banks, and will continue fighting to protect America’s farmland and put our farmers and producers first.”
“Food security is national security. Leaving America’s basic needs vulnerable to extortion by foreign control is not an option,” said Senator Banks. “This bill prevents foreign adversaries, including communist China, from owning American farmland in Indiana and across the U.S.—a no-brainer. Proud to lead this effort alongside Senator Tuberville and Rep. Strong.”
U.S. Representative Dale Strong (R-AL-05) also introduced companion legislation in the U.S. House of Representatives.
“Chinese investment in U.S. farmland, much of which is in close proximity to sensitive national security sites, presents an enormous threat not only to our food, fiber, and fuel markets but also to our national security. As the CCP, Iran, Russia, and North Korea look to exploit weaknesses in our free and open society, it is our responsibility to ensure that the American people are protected against those who seek to undermine our national interest,” said Congressman Strong.
Specifically, the Protecting America’s Agricultural Land from Foreign Harm Act would:
Restrict foreign ownership of U.S. agricultural land, forests, and timberland by Iran, North Korea, China, and Russia,
Prohibit participation in certain USDA programs for individuals from Iran, North Korea, China, and Russia,
Close loopholes to ensure adequate reporting of foreign owned U.S. agricultural land,
Establish a federal tax lien if a violation occurs and amend civil penalties,
Establish more in-depth public data sets through online database,
Require U.S. Department of Agriculture (USDA), Department of National Intelligence (DNI), and Government Accountability Office (GAO) to submit individual reports to Congress.
Read the bill or learn more here.
BACKGROUND
Over the past few years, the United States has experienced a rapid increase in foreign investment in the agricultural sector, particularly from China. Growing foreign investment in agriculture and other essential industries, like health care and energy, threaten our country’s national security and ability to survive. Senator Tuberville has long been a vocal critic of foreign ownership of American farmland and other elements of our food supply chain. As Alabama’s voice on the Senate Ag Committee, Senator Tuberville has been sounding the alarm about foreign ownership of American farmland and other elements of our food supply chain.
According to USDA data from December 2023, foreign investors own approximately 45 million acres of U.S. agricultural land. This represents an increase of over 1.5 million acres in one calendar year. Foreign ownership of U.S. agricultural land increased modestly increased from 2012 to 2017 at an average increase of 0.6 million acres per year. However, since 2017, this number skyrocketed to an annual average of 2.6 million acres annually. Additionally, between 2010 and 2021, entities or individuals from China increased their ownership of U.S. agricultural land more than twentyfold, from 13,720 acres to 383,935 acres. Alabama has the fourth-highest amount of foreign-owned agricultural land in the United States, with 2.2 million acres, most of which is forestland.
Earlier this year, Senator Tuberville reintroduced the Foreign Adversary Risk Management (FARM) Act, a bipartisan, bicameral bill that would ensure the Committee on Foreign Investment in the United States (CFIUS) acknowledges the importance of our agricultural industry and supply chains by adding the Secretary of Agriculture as a permanent member of the committee. Currently, CFIUS does not directly consider the needs of the agriculture industry when reviewing foreign investment and ownership in domestic businesses.
MORE:
Tuberville Continues Efforts to Secure America’s Farmland from Foreign Adversaries
Tuberville Continues Fighting Foreign Influence in American Agriculture
Second Democrat Ag Secretary Endorses Central Provision in Tuberville’s FARM Act
Biden Ag Secretary Endorses Central Part of Tuberville’s FARM Act
Tuberville Continues Push to Combat Chinese Influence in U.S. Agriculture
Tuberville, Jackson Lead Bipartisan, Bicameral Effort to Protect Ag Industry from Foreign Interference
Tuberville Introduces Bipartisan Bill to Ban Foreign Adversaries from Buying U.S. Farmland
Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP, and Aging Committees.
Source: China State Council Information Office
Aid trucks wait to enter Gaza at the Egyptian side of the Rafah border crossing on Jan. 19, 2025. [Photo/Xinhua]
Hamas reaffirmed on Tuesday its willingness to implement the second and third phases of the Gaza ceasefire agreement.
Hamas spokesperson Hazem Qassem said in a statement that the group had agreed, at the request of a mediator, to double the number of Israeli hostages to be released, demonstrating its commitment to the deal.
Qassem rejected Israeli demands for Hamas to leave Gaza, calling them part of a “psychological war.” He stressed that Hamas would not accept Israeli Prime Minister Benjamin Netanyahu’s demand that the group disarm and its leaders be expelled from Gaza.
Separately, Israel’s public broadcaster reported that Netanyahu had officially decided to begin negotiations for the second phase of the ceasefire deal and informed the Security Cabinet of his decision.
Source: China State Council Information Office
A soldier of the motorized rifle battalion of the 93rd brigade shows an anti-drone shotgun at a position in Donetsk on Aug. 15, 2024. [Photo/Xinhua]
The United States and Russia have agreed to work on a path to ending the conflict in Ukraine and improve bilateral ties during extensive high-level talks in Saudi Arabia on Tuesday.
In the first face-to-face interactions between senior U.S. and Russian officials since the outbreak of the Russia-Ukraine conflict in February 2022, the Russian delegation, led by Russian Foreign Minister Sergei Lavrov and the Kremlin’s foreign affairs adviser Yuri Ushakov, met with U.S. Secretary of State Marco Rubio, who was accompanied by National Security Adviser Mike Waltz and U.S. special envoy to the Middle East Steve Witkoff.
Serious discussion
Following the four-and-a-half-hour talks, Witkoff described the Riyadh talks as “positive, upbeat, constructive.” Ushakov said it was a “very serious discussion of all the issues we wanted to touch upon,” noting the two sides agreed to take into account each other’s interests and develop bilateral relations.
The United States and Russia agreed to “establish a consultation mechanism to address irritants to our bilateral relationship with the objective of taking steps necessary to normalize the operation of our respective diplomatic missions,” according to a statement by the U.S. Department of State.
Washington and Moscow will “appoint respective high-level teams to begin working on a path to ending the conflict in Ukraine as soon as possible in a way that is enduring, sustainable, and acceptable to all sides,” the statement said.
The two sides agreed to “lay the groundwork for future cooperation on matters of mutual geopolitical interest and historic economic and investment opportunities which will emerge from a successful end to the conflict in Ukraine,” the statement added.
In a press conference following the meeting, Lavrov described the discussions as “very useful,” emphasizing Russia’s firm stance that the deployment of NATO troops in Ukraine is unacceptable.
This meeting is the latest indication of a thaw in the previously frosty relations between Washington and Moscow since U.S. President Donald Trump took office in January.
Last week, Trump had a phone call with Russian President Vladimir Putin that lasted nearly an hour and a half, during which the Russian president extended an invitation for Trump to visit Moscow.
Kremlin spokesperson Dmitry Peskov said in an interview with local media following the phone call that Putin and Trump “agreed quite quickly to coordinate and hold a working meeting somewhere in a third country.”
Echoing the Kremlin’s comments, Trump said that the call, which focused on negotiations to end the Ukraine crisis, is “lengthy and highly productive.”
The phone call between the two presidents has set the wheels in motion for further official exchanges between the two countries.
In a phone call on Saturday, Lavrov and Rubio also agreed to maintain regular contact.
Both sides pledged to keep communication channels open to address accumulated issues in bilateral relations, particularly to “eliminate unilateral obstacles inherited from the previous U.S. administration that hinder mutually beneficial cooperation in trade, economy, and investment,” the Russian Foreign Ministry said in a statement.
“The Trump administration is trying to reset tense relations with Moscow,” The Wall Street Journal stated in an opinion piece while commenting on the U.S.-Russia meeting in Saudi Arabia.
Mixed reactions
After the large-scale conflict between Russia and Ukraine erupted, the U.S. government under Joe Biden took a firm stance alongside its European allies, throwing its full support behind Ukraine by providing substantial military aid and isolating Russia on the international stage.
When it comes to potential negotiations between Russia and Ukraine, the mantra once shared by the United States and Europe has been “nothing about Ukraine without Ukraine,” emphasizing Ukraine’s leading role in any future talks.
The change in the United States’ stance on the Ukraine-Russia conflict is occurring against a backdrop of increasing divergence in the understanding of defense cooperation between the United States and Europe.
Washington has repeatedly expressed dissatisfaction with its European allies for not pulling their weight in defense spending.
“The United States will no longer tolerate an imbalanced relationship which encourages dependency,” U.S. Secretary of Defense Pete Hegseth declared during the meeting with NATO defense ministers last week, calling on Europe to assume its “own responsibility for its own security.”
What has further unsettled the European countries and Ukraine is that the high-profile talks between the United States and Russia excluded both Europe and Ukraine.
In an emergency meeting hastily convened in Paris on the eve of the U.S.-Russia talks, a dozen European leaders reaffirmed their commitment to supporting Ukraine as the United States warms its ties with Russia.
Meanwhile, some European leaders have voiced their frustration regarding their exclusion from the dialogue between the United States and Russia.
“There can be no negotiation about Ukraine without Ukraine. The same is true for Europe,” said Dutch Defense Minister Ruben Brekelmans on social media platform X. “Europe must be involved in the negotiations.”
Following the Riyadh meeting, Ukrainian President Volodymyr Zelensky, who is in Türkiye for a visit, said that the Russia-U.S. talks were “a surprise” to Kiev, which it “found out through the media.”
Zelensky stressed that Türkiye and Europe should be involved in discussions about ending the Russia-Ukraine conflict. “Negotiations should not take place behind our backs,” he said, announcing the cancellation of his scheduled visit to Saudi Arabia.
The Ukrainian president has said before that Kiev would not participate in the U.S.-Russia negotiation and his country will not accept the results of the negotiations that do not involve Ukraine.
Source: China State Council Information Office
Chinese Foreign Minister Wang Yi, also a member of the Political Bureau of the Communist Party of China Central Committee, chairs an open debate of the Security Council on “Practicing Multilateralism, Reforming, and Improving Global Governance” under the agenda item “Maintenance of International Peace and Security” on Feb. 18, 2025. [Photo/Chinese Ministry of Foreign Affairs]
On Tuesday, Feb. 18, Chinese Minister for Foreign Affairs Wang Yi chaired an open debate of the Security Council on “Practicing Multilateralism, Reforming, and Improving Global Governance” under the agenda item “Maintenance of International Peace and Security.”
The year 2025 marks the eightieth anniversary of the founding of the United Nations and the victory in the World Anti-Fascist War. The ministerial-level meeting, held under China’s presidency of the Council, provided an opportunity for Member States to review the history of the United Nations, reaffirm their commitment to multilateralism, and jointly build a just and equitable global governance system.
Wang Yi noted that over the past 80 years, the world has witnessed accelerated multi-polarization and economic globalization. People around the world have forged ahead together to overcome challenges. It has been a time of the Global South’s rise and growing strength, as well as a period when societies have emerged from the shadow of the Cold War and moved beyond bipolar confrontation. However, true global peace and common prosperity have yet to be fully realized.
“The international community drew painful lessons from the scourge of two world wars, and the United Nations was founded,” Wang Yi said at the UN Security Council meeting, stressing the need to “reinvigorate true multilateralism, and speed up efforts to build a more just and equitable global governance system” in the face of global crises.
Wang Yi reiterated China’s support for all efforts conducive to peace talks in Ukraine. On the Middle East, he emphasized the importance of upholding the two-state solution. “Gaza and the West Bank are the homeland of the Palestinian people, not a bargaining chip in political trade-offs. The Palestinians governing Palestine is an important principle that must be followed in the post-conflict governance of Gaza,” he said.
Wang Yi also emphasized that UN Security Council resolutions are legally binding and must be upheld by all countries.
Source: China State Council Information Office
Trucks loaded with Chinese aid get ready to set off from the warehouse of Jordan Hashemite Charity Organization in Zarqa, Jordan, on Feb. 18, 2025. [Photo/Xinhua]
The Chinese embassy in Jordan and the Jordan Hashemite Charity Organization held a departure ceremony on Tuesday for a humanitarian aid shipment to the Gaza Strip.
The humanitarian assistance provided by China will be transported from Jordan to Gaza via land borders. The emergency aid, consisting of 60,000 food parcels, will be delivered in six shipments. The initial shipment, which includes about 12,000 food parcels, will be handed over to the World Food Programme, the Palestine Red Crescent, and other relevant organizations once the shipment reaches Gaza.
During the ceremony, Chinese Ambassador to Jordan Chen Chuandong said that China, as a friend of the Palestinian people, has provided multiple aid shipments to Gaza, and will continue to provide further assistance to the Palestinian people.
For his part, Hashemite Charity Organization’s Secretary-General Hussein Shibli expressed his deep gratitude to China for its support for Gaza residents, expressing his hope for further cooperation with China in the coming days to help those in need in the enclave.
Source: China State Council Information Office
A worker prepares the truck loaded with Chinese aid at the warehouse of Jordan Hashemite Charity Organization in Zarqa, Jordan, on Feb. 18, 2025. [Photo/Xinhua]
China reaffirmed its firm support for the two-state solution as the only realistic path to resolving the recurring cycles of the Israeli-Palestinian conflict, China’s envoy to Egypt and the Arab League said in Cairo on Monday.
Speaking at the Fourth Meeting of the Global Alliance for the Implementation of the Two-State Solution held in Cairo, Ambassador Liao Liqiang expressed deep concern over the situation in Gaza and urged the international community to push for full implementation of the ceasefire agreement, according to a statement released by the Chinese embassy.
Liao emphasized that Gaza is an integral part of Palestinian territory and that future arrangements for the enclave should respect the will of the Palestinian people, adhere to international law and UN resolutions, and address the concerns of regional countries.
The meeting discussed the role of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) and Israel’s restrictions on its operations. Liao reiterated China’s support for UNRWA’s work in post-conflict Gaza, saying any actions targeting or hindering the agency are detrimental to a political settlement.
He called on the international community to utilize platforms like the Global Alliance for the Implementation of the Two-State Solution to build consensus and promote a comprehensive, just and lasting solution to the Palestinian issue.
Egypt’s foreign ministry, in a statement after the meeting, reiterated its commitment to the two-state solution, stressing that an independent Palestinian state based on 1967 borders with East Jerusalem as its capital is the only way to achieve lasting peace.
UNRWA Commissioner-General Philippe Lazzarini highlighted the agency’s crucial role in maintaining the ceasefire and providing essential services to Palestinian refugees, calling for urgent international support to address the humanitarian crisis in Gaza.
UN Special Coordinator for the Middle East Peace Process ad interim Sigrid Kaag underscored the importance of a comprehensive political solution.
The meeting brought together representatives from 35 countries and various regional and international organizations.
Source: GlobeNewswire (MIL-OSI)
TORTOLA, British Virgin Islands, Feb. 18, 2025 (GLOBE NEWSWIRE) — February 19, 2025 – Orca Energy Group Inc. (“Orca” or the “Company” and includes PanAfrican Energy Tanzania Limited (“PAET“) and its other subsidiaries and affiliates) (TSX-V: ORC.A, ORC.B) announces the approval of its Independent Reserves Evaluation as at December 31, 2024. All currency amounts in this news release are in United States Dollars ($) unless otherwise stated.
INDEPENDENT RESERVES EVALUATION
The Company’s conventional natural gas reserves as at December 31, 2024 for the period to the end of the primary 25-year term of the production sharing agreement (the “Songo Songo PSA“) with the Tanzanian Petroleum Development Corporation (the “TPDC“) have been evaluated by independent petroleum engineering consultants McDaniel & Associates Consultants Ltd. (“McDaniel“), an independent reserves evaluator, in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook (“COGE Handbook“) and National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101“). The Songo Songo PSA expires upon the expiry of TPDC’s Songo Songo licence in respect of the Songo Songo gas field (the “Songo Songo Licence“) in October 2026. The preparation date of the independent reserves evaluation prepared by McDaniel is February 18, 2025 and the effective date of the evaluation is December 31, 2024 (the “McDaniel Report“).
All of the Company’s reserves are located in Tanzania. Reserves included herein are stated on a Company gross reserves basis unless noted otherwise. Company gross reserves are the total of the Company’s working interest share in reserves.
The Company’s Board of Directors has reviewed and approved the McDaniel Report. Additional reserves information required under NI 51-101 is included in Orca’s reports relating to reserves data and other oil and gas information under NI 51-101, which will be filed on its profile on SEDAR+ at www.sedarplus.ca. The following discussion is subject to a number of cautionary statements, assumptions, contingencies and risks as set forth in this news release.
HIGHLIGHTS
| Company Gross Reserves | Company Net Reserves | |||
| Conventional.
Natural Gas |
Conventional.
Natural Gas |
|||
| MMcf | MMcf | |||
| Proved | ||||
| Developed Producing | 40,244 | 28,020 | ||
| Developed Non-Producing | – | – | ||
| Undeveloped | – | – | ||
| Total Proved | 40,244 | 28,020 | ||
| Probable | 1,224 | 803 | ||
| Total Proved plus Probable | 41,469 | 28,823 | ||
Net Present Value of Future Net Revenue of Gas Reserves
| Before and After Future Income Tax Expenses Discounted at | Unit Value | ||||||||||||||||
| Before and After Tax at 10% |
|||||||||||||||||
| 0 | % | 5 | % | 10 | % | 15 | % | 20 | % | $/Mcf | |||||||
| ($’000) | |||||||||||||||||
| Proved | |||||||||||||||||
| Developed Producing | 67,574 | 64,549 | 61,824 | 59,357 | 57,112 | 2.21 | |||||||||||
| Developed Non-Producing | – | – | – | – | – | – | |||||||||||
| Undeveloped | – | – | – | – | – | – | |||||||||||
| Total Proved | 67,574 | 64,549 | 61,824 | 59,357 | 57,112 | 2.21 | |||||||||||
| Probable | 3,160 | 3,016 | 2,887 | 2,769 | 2,663 | 3.60 | |||||||||||
| Total Proved plus Probable | 70,735 | 67,565 | 64,710 | 62,126 | 59,775 | 2.25 | |||||||||||
Notes:
McDaniel employed the following gas sales, pricing and inflation rate assumptions as of December 31, 2024 in estimating the Company’s reserves data using forecast prices and costs. The Company received an average gas price of $4.67/Mcf in 2024 and $4.22/Mcf net of the transportation tariff imposed by Songas Limited as determined by the energy regulator, EWURA.
| Songo Songo gas prices | ||||||||
|
Year |
Brent crude
$/bbl |
Proved
$/Mcf |
Proved plus probable
$/Mcf |
Annual inflation
% |
||||
| 2025 | 76.50 | 5.15 | 5.20 | 2 | ||||
| 2026 | 78.03 | 5.25 | 5.32 | 2 | ||||
Note: Brent price forecast based on the McDaniel January 1, 2025 price forecast.
The price of gas for the Industrial sector is based on a formula related to discounts to heavy fuel oil prices and includes caps and floors. This has been reflected in the above pricing.
Orca Energy Group Inc.
Orca is an international public company engaged in natural gas development and supply in Tanzania through its subsidiary PAET. Orca trades on the TSX Venture Exchange under the trading symbols ORC.A and ORC.B.
For further information please contact:
Jay Lyons
Chief Executive Officer
+44 (0)20 8434 2754
ir@orcaenergygroup.com
For media enquiries:
Celicourt (PR)
Mark Antelme
Jimmy Lea
Orca@celicourt.uk
+44 (0)20 8434 2754
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Abbreviations
| bbl | cubic meters |
| Mcf | thousand cubic feet |
| MMcf | million standard cubic feet |
Forward Looking Information
Certain information regarding Orca set forth in this news release contains forward-looking information and statements as defined under applicable securities laws (collectively, “forward-looking statements” or “statements“) that involve substantial known and unknown risks and uncertainties. The use of any of the words “plan”, “expect”, “prospective”, “project”, “intend”, “believe”, “should”, “anticipate”, “estimate” or other similar words, or statements that certain events or conditions “may” or “will” occur are intended to identify forward-looking statements. These statements are only predictions and actual events or results may differ materially. Although the Company’s management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Orca’s actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Orca.
In particular, statements relating to “reserves” are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the resources described exist in the quantities predicted or estimated, and that the resources described can be profitably produced in the future. Additional forward-looking statements in this news release include statements regarding: expectations regarding demand for natural gas and the implications of decreasing demand; expiration of the Songo Songo PSA and the Songo Songo Licence and pending extension of the Songo Songo Licence and Songo Songo PSA; reserves and future net revenue from the Company’s reserves; assumptions regarding the increased demand for hydro power in Tanzania; and assumptions regarding gas sales, pricing and inflation rates.
These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to risks and uncertainties regarding or associated with: drilling wells, including the costs of drilling and whether development drilling results in commercially productive quantities of oil and gas; the terms of Orca’s future petroleum contracts, including potential obligations to drill wells and declare discoveries in order to retain Orca’s exploration and production rights; Orca’s local operational dependence and focus of its existing contracts; Orca’s future control over the Songo Songo Licence areas and facilities, including its status as operator thereof, and the timing and extent of costs in association therewith; estimations of reserves and the present value of future net revenues derived from them; Orca’s dependency on its management and technical team; Orca’s business plan including the additional capital required to execute such plans; commercializing Orca’s interests in any hydrocarbons produced from future licence areas; Orca’s ability to access appropriate equipment and infrastructure in a timely manner; the exploration and production of oil and natural gas, including but not limited to drilling and other operational and environmental risks and hazards; severe weather including but not limited to tropical storms and hurricanes; disagreements with TPDC regarding the Songo Songo PSA; the political and economic circumstances in the countries in which Orca operates; disputes with the Government of Tanzania; technological development; activism against oil and exploration and development; limitations on insurance coverage; Orca’s operations in a litigious environment; global populism; Orca’s future capitalization which may include additional indebtedness; acquisitions and the integration of any target entity or business into Orca’s current business; cybersecurity and data breaches; impacts of pandemics; share price volatility and dilution; Orca’s controlling shareholder and its control over key decision making as a result of its control of a majority of the voting rights attached to Orca’s issued and outstanding securities; Orca’s status as a holding company that’s ability to declare and pay dividends and purchase its own securities is dependent upon the receipt of funds from Orca’s subsidiaries by way of dividends, fees, interest, loans or otherwise; the impact of general economic conditions, including global and local oil and gas prices; industry conditions including changes in laws and regulations, and changes in how they are interpreted and enforced; competition; lack of availability of qualified personnel; risks related to obtaining required approvals of regulatory authorities; risks associated with negotiating with governments and other counterparties; fluctuations in foreign exchange or interest rates; risks and uncertainties associated with obtaining an extension to the Songo Songo PSA and related Songo Songo Licence or successfully renegotiating them; changes in income tax laws or tax rates; ability to access sufficient capital from internal and external sources; associated with the failure of counterparties to perform under the terms of their contracts, including collectability of Orca’s receivables from such parties; reduced global economic activity as a result of global pandemics, including lower demand for natural gas and a reduction in the price of natural gas; prolonged deficiency in Tanzania’s official reserve and foreign exchange losses; political instability and the impacts of the Russian-Ukrainian conflict, the Israel-Hamas conflict, conflicts in the Middle East and related actions; and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive.
Although the forward-looking statements contained in this news release are based upon assumptions which management believes to be reasonable, Orca cannot assure investors that actual results will be consistent with these forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements included in this news release, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur. With respect to forward-looking statements contained in this news release, Orca has made assumptions regarding, among other things: continued and timely development of infrastructure in areas of new production; obtaining an extension to the Songo Songo PSA and related Songo Songo Licence on terms acceptable to Orca; accuracy of estimates of Orca’s reserves volumes; the impact of any pandemics or political conflicts on the demand for and price of natural gas, volatility in financial markets, disruptions to global supply chains and the Company’s business, operations, access to customers and suppliers, availability of employees to carry out day-to-day operations, and other resources; future commodity prices and commodity price fluctuations; availability of skilled labour; availability of transactions to facilitate Orca’s growth strategy; growth of demand and consumption of natural gas in Tanzania and throughout Africa; the impact of increasing competition; conditions in general economic and financial markets; effects of regulation by governmental agencies; receipt of partner, regulatory and community approvals; future operating costs; effects of regulation by governmental agencies; that Orca’s conduct and results of operations will be consistent with its expectations; current or, where applicable, proposed industry conditions, laws and regulations will continue in effect or as anticipated as described herein; and other matters. There are a number of assumptions associated with the development of the evaluated areas, including continued performance of existing wells, future drilling programs and performance from new wells, the growth of infrastructure, well density per section, and recovery factors and development necessary involves known and unknown risks and uncertainties, including those risks identified in this news release. Orca believes the material factors, expectations and assumptions reflected in the forward-looking information are reasonable but no assurance can be given that these factors, expectations and assumptions will prove to be correct.
Management has included the above summary of assumptions and risks related to forward-looking information provided in this news release in order to provide investors with a more complete perspective on Orca’s current and future operations and such information may not be appropriate for other purposes. Orca’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits Orca will derive. These forward-looking statements are made as of the date of this news release and Orca disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Oil and Gas Advisory
The Company’s conventional natural gas reserves as at December 31, 2024 disclosed herein were evaluated by McDaniel in accordance with the definitions, standards and procedures contained in the COGE Handbook and NI 51-101. The McDaniel Report had an effective date of December 31, 2024. The Company’s conventional natural gas reserves as at December 31, 2023 disclosed herein were evaluated by McDaniel in accordance with the definitions, standards and procedures contained in the COGE Handbook and NI 51-101. Such report had an effective date of December 31, 2023.
Additional reserves information required under NI 51-101 are included in Orca’s reports relating to reserves data and other oil and gas information under NI 51-101, which are filed on its profile on SEDAR at www.sedar.com.
This news release contains estimates of the net present value of Orca’s future net revenue from the Company’s reserves. The net present value of future net revenue attributable to the Company’s reserves is stated without provision for interest costs and out of country general and corporate administrative costs, but after providing for estimated royalties, production costs, development costs, other income and future capital expenditures. It should not be assumed that the undiscounted or discounted net present value of future net revenue attributable to the Company’s reserves estimated by McDaniel represent the fair market value of those reserves. Such amounts do not represent the fair market value of the Company’s reserves. The recovery and reserve estimates of the Company’s conventional natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater than or less than the estimates provided herein.
US Senate News:
Source: United States Senator for Arkansas – John Boozman
WASHINGTON––U.S. Senators John Boozman (R-AR), Tim Scott (R-SC) and Jacky Rosen (D-NV) introduced the Antisemitism Awareness Act, which would direct the U.S. Department of Education to use the International Holocaust Remembrance Alliance’s (IHRA) definition of antisemitism when investigating antisemitic acts on campus.
This bill ensures the Education Department has a clear definition of antisemitism when determining whether an antisemitic incident on campus crosses the line from free speech into harassing, unlawful or discriminatory conduct.
“Disturbing acts of antisemitism and violence increased on college campuses in the wake of Hamas’ deadly attack on Israel, it is more important than ever for universities to fulfill their responsibility to provide students with a safe learning environment,” said Boozman. “University leaders should move swiftly to hold individuals who take part in abhorrent, antisemitic behavior accountable and I am proud to support this commonsense legislation that gives them clear guidance and federal support.”
“In the continued aftermath of the October 7th attacks on Israel by Hamas and Iran, we have seen college campuses across our nation become hotbeds of antisemitism where Jewish students’ rights are being threatened,” said Scott. “It’s critical the Department of Education has the tools and resources it needs to investigate antisemitism and root out this vile hatred wherever it rears its ugly head. There can be no equivocating when it comes to the issue of anti-Jewish violence and harassment.”
“Antisemitism is on the rise across the nation, particularly on college campuses, and Congress has a responsibility to do everything in its power to fight back against this hate,” said Rosen. “I’ll keep working with colleagues on both sides of the aisle to get this bill passed and signed into law.”
The Antisemitism Awareness Act is also cosponsored by Senators James Lankford (R-OK), Charles Schumer (D-NY), Lindsey Graham (R-SC), Richard Blumenthal (D-CT), Rick Scott (R-FL), Maggie Hassan (D-NH), Susan Collins (R-ME), Kirsten Gillibrand (D-NY), Shelley Moore Capito (R-WV), Ruben Gallego (D-AZ), Mike Crapo (R-ID), John Hickenlooper (D-CO), Katie Britt (R-AL), Ron Wyden (D-OR), John Cornyn (R-TX), Chris Coons (D-DE), Tom Cotton (R-AR), Catherine Cortez Masto (D-NV), Michael Bennet (D-CO), Pete Ricketts (R-NE), Maria Cantwell (D-WA), Chuck Grassley (R-IA), John Fetterman (D-PA), Kevin Cramer (R-ND), Adam Schiff (D-CA), Cindy Hyde-Smith (R-MS), Elissa Slotkin (D-MI), Deb Fischer (R-NE), Mark Warner (D-VA), John Barrasso (R-WY) and Gary Peters (D-MI).
Further, the Antisemitism Awareness Act is endorsed by the Conference of Presidents of Major American Jewish Organizations, Christians for United Israel Action Fund, the Anti-Defamation League, the American Jewish Committee and the Jewish Federations of North America. Here’s what they are saying:
“Since Hamas’s October 7th attack on Israel, there has been a dramatic increase in antisemitism on college campuses. We continue to see university administrators show they have little understanding of how to identify antisemitism. The Conference of Presidents urges swift passage of AntisemitismAwareness Act,” said COO of the Conference of Presidents of Major American Jewish Organizations Stephanie Hausner.
“Advancing this legislation is important in making American campuses safe and welcoming for all. We must defeat the vile cancer of antisemitism and defining it under US law is a critical step in that righteous effort,” said Christians for United Israel Action Fund Chairwoman Sandra Hagee Parker.
“As Anti-Defamation League data shows, antisemitism is at crisis levels in the United States, creating the urgent need for decisive action. The AntisemitismAwareness Act makes clear that antisemitism, including anti-Zionist harassment, has no place in our schools or society and, importantly, reinforces the IHRA Working Definition of Antisemitism as a critical tool for the U.S. Department of Education,” said Anti-Defamation League CEO Jonathan Greenblatt.
“According to American Jewish Committee’s upcoming State of Antisemitism in America 2024 Report, three in ten American adults are either unsure of what antisemitism means or never heard the term. This number jumps for young Americans (ages 18-29): 41% of young Americans are unsure of what antisemitism means or never heard the term, while, at the same time, young American Jews (ages 18-29) are more likely to have experienced antisemitismin the past year than Jews ages 30 and older. These numbers show why it is critical to have a clear understanding of what antisemitism is and why it matters for American society because to even begin to solve the problem of antisemitism, there must be clarity about what it is and what it isn’t. The International Holocaust Remembrance Alliance (IHRA) Working Definition of Antisemitism is a clear and concise description of antisemitism in its various forms. AJC has supported efforts by both Republican and Democratic Administrations to use this definition at the Department of Education when investigating Title VI complaints,” said CEO of American Jewish Committee Ted Deutch.
“This bill provides a clear framework for identifying antisemitism, offering concrete examples to help distinguish between constitutionally protected speech and targeted attacks against Jewish individuals. Congress must act now to send a strong message that antisemitism has no place in our society,” said Jewish Federations of North America Vice President of Government Relations Karen Paikin Barall.
Congressmen Mike Lawler (R-NY-17) and Josh Gottheimer (D-NJ-05) are leading companion legislation in the U.S. House of Representatives.
Click here for full text of the legislation.
Source: Office of United States Attorneys
Tampa, Florida – Acting United States Attorney Sara C. Sweeney announces the unsealing of a criminal complaint charging Pablo Zuniga Cartes (24, Chile), Ignacio Zuniga Cartes (20, Chile), Bastian Jimenez Freraut (27, Chile), Jordan Quiroga Sanchez (22, Chile), Bastian Orellano Morales (23, Chile), Alexander Huiaguil Chavez (24, Chile), and Sergio Ortega Cabello (38, Chile) with conspiracy to commit interstate transportation of stolen property. If convicted, each faces a maximum penalty of 10 years in federal prison.
According to the complaint, the individuals were members of a South American Theft Group that burglarized the homes of professional athletes around the country. These individuals targeted high-profile athletes in the National Football League (“NFL”) and National Basketball Association (“NBA”), all of whom were away or playing in professional games at the times of the burglaries. These individuals stole valuables worth over $2 million.
On October 5 and 7, 2024, in the Kansas City area, the homes of two Kansas City Chiefs football players were burglarized and jewelry, watches, cash, and other luxury merchandise was taken. The October 7 burglary occurred while the team played in Kansas City, Missouri.
As detailed in the complaint, in Tampa on October 21, 2024, the home of a Tampa Bay Buccaneers player was burglarized while the team played in Tampa. Jewelry, designer watches, a luxury suitcase, and a firearm were stolen.
On November 2, 2024, the Wisconsin home of a Milwaukee Bucks player was burglarized during a game in Milwaukee. A safe containing several watches, chains, personal items, jewelry, and cash was stolen, along with a designer suitcase and designer bags. The total value of property stolen was approximately $1.484 million.
The below photograph depicts Pablo Zuniga Cartes, Ignacio Zuniga Cartes, Bastian Jimenez Freraut, and a fourth individual posing with the stolen safe and jewelry taken shortly after the theft:
On December 9, 2024, the Cincinnati home of a Cincinnati Bengals player was burglarized while the team played Arlington, Texas. Designer luggage, glasses, watches, and jewelry valued at about $300,000 was stolen. Sergio Ortega Cabello rented a vehicle used in the burglary.
Between the late afternoon on December 19, 2024, and the early morning of December 20, 2024, the Tennessee home of a Memphis Grizzlies player was burglarized while the team played in Memphis, Tennessee. Jewelry, watches, and luxury bags valued at about $1 million were stolen.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Hillsborough County Sheriff’s Office, with assistance from Homeland Security Investigations, United States Customs and Border Patrol, the Ohio Bureau of Criminal Investigation, the Hamilton County (Tennessee) Sheriff’s Office, the Shelby County (Tennessee) Sheriff’s Office, the Dallas (Texas) Police Department, the Indian Hill (Ohio) Police Department, the Leawood (Kansas) Police Department, the River Hills (Wisconsin) Police Department.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious transnational criminal organizations. It is being prosecuted by Assistant United States Attorneys Dan Baeza and Special Assistant United States Attorney Ashley Haynes.
US Senate News:
Source: The White House
PROMOTING TRANSPRENCY AND ACCOUNTABILITY: Today, President Donald J. Trump signed a memorandum requiring radical transparency regarding wasteful spending of taxpayer dollars by the federal government.
It requires all departments and agencies to disclose details about terminated programs, cancelled contracts, and discontinued grants to the fullest extent allowed by law.
PUTTING AN END TO WASTEFUL SPENDING: By signing this memorandum, President Trump recognizes that the American people have a right to see how the federal government has wasted their hard-earned wages.
The United States government has wasted taxpayer dollars on programs, contracts, and grants that do not serve the American public’s interests.
For too long, taxpayers have subsidized ideological projects overseas and domestic organizations engaged in actions that undermine the national interest.
The Biden Administration spent billions on electric vehicle charging stations, yet only a fraction were completed.
The Trump Administration recently canceled a Biden-era $50 million environmental justice grant to an organization that believes “climate justice travels through a Free Palestine.”
Numerous USAID grants have come under review, including $1.5 million to “advance diversity equity and inclusion in Serbia’s workplaces and business communities.”
The Biden Administration gave nearly $4.6 million to help foreign groups promote LGBT projects like drag shows and pride parades.
The Trump Administration found $20 billion parked at a financial institution by the Biden Administration to fund partisan pet projects.
President Trump’s Department of Education canceled $881 million in unnecessary contracts that were not benefiting students, including a $4.6 million contract just to coordinate Zoom and in-person meetings.
President Trump’s Department of Government Efficiency (DOGE) has already recovered $1.9 billion in taxpayer funds “misplaced” by the Biden Administration.
The Government Accountability Office released a report last year estimating that the federal government “could lose between $233 billion and $521 billion annually to fraud.”
KEEPING HIS PROMISE TO THE AMERICAN PEOPLE: President Trump campaigned on a promise to return power back to the American people by “cleaning out the Deep State, firing rogue bureaucrats and career politicians, and targeting government corruption.”
President Trump recently signed a memorandum to stop last-minute collective bargaining agreements issued by the Biden Administration designed to constrain the incoming Trump Administration from reforming government.
President Trump created the Department of Government Efficiency (DOGE) to bring accountability and transparency to federal spending, ensuring taxpayer dollars are spent wisely and effectively.
President Trump launched a 10-to-1 deregulation initiative, ensuring every new rule is justified by clear benefits for taxpayers.
The Trump Administration is aggressively investigating Biden-era programs that wasted billions of taxpayer dollars on inefficient and politically-driven projects, including canceling unnecessary government contracts and grants that do not serve the national interest.
Source: The Conversation (Au and NZ) – By Elise Stephenson, Deputy Director, Global Institute for Women’s Leadership, Australian National University
Newly published research has found clear evidence that openly lesbian, gay, bisexual, trans, intersex, and queer+ (LGBTIQ+) Australian politicians were disproportionately targeted with personal abuse on social media at the last federal election. Given global trends, it’s unlikely to be any different this year.
Simply logging off is not an option for candidates, who need to communicate with voters. As a result, some politicians will continue to face risky online visibility.
Since Elon Musk acquired Twitter/X, hate speech has surged, particularly for public figures such as parliamentarians.
So what do these trends mean for queer candidates ahead of this year’s election? And why does it matter for the next generation of politically engaged young people?
We analysed more than 100,000 tweets across the Twitter profiles of eight openly queer politicians and candidates (Penny Wong, Julian Hill, Nita Green, Tim Wilson, Janet Rice, Rachael Jacobs, Claire Garton, Stephen Bates) during the 2022 federal election campaign. We compared them with eight other politicians (Zoe Daniel, Graham Perrett, Lidia Thorpe, Anthony Chisholm, Barbara Pocock, Simon Birmingham, Deborah O’Neill, David Shoebridge) in the same period.
We suspected that political hopefuls who publicly identified as LGBTIQ+ may have experienced greater levels of abuse and harassment. But what we found surprised us.
The level of online intimidation was roughly the same for queer and non-queer politicians. However, the type of abuse differed significantly.
Queer politicians endured highly personal harassment that specifically targeted their gender or physical appearance. They suffered nasty queer-specific slurs, transphobic messages and ableist language. Essentially, nothing that was related to their policies or politics.
Meanwhile, straight, cisgender politicians received harassment that was typically political in nature. More of it focused on their party or platform. It wasn’t as personal (with the exception of Thorpe, who received high levels of racist abuse). While overtly hostile, for straight politicians in general much of the harassment received might be considered an unavoidable part of the democratic political process in the social media age.
Our research provides a useful retrospective of some of the vitriol that proliferated during the last election.
One such event began with YouTube commentator Jordan Shanks breaking a salacious story of repeated sexual misconduct by staffers in Canberra, purportedly in MPs offices and in the parliamentary multi-faith prayer room.
Our data tracked the way queer male politicians were wrongly affiliated and tagged in the scandal. They were unfairly accused and ridiculed. The unfounded attacks were non-partisan, involving politicians from across the major parties. This indicated a single point of commonality – their sexuality.
Liberal MP Tim Wilson, who had no involvement in the scandal, received over 2000 tweets explicitly mentioning the incident. Many were overtly homophobic, using terms such as “toy boy”, “rentboy”, “parasite” and “prayer room pervert”.
The data indicates that queer politicians face a double bind. The personal hate they experience negatively impacts them as individuals and also distracts from genuine political debate. Trolling, hate speech, and a prohibitive online environment stymies open and constructive political dialogue.
Furthermore, identity based harassment discourages queer people from pursuing political careers in the first place. Or staying in politics once they’ve experienced the hate. It erodes their sense of safety when engaging in public discourse and undermines the foundations upon which democracy is built.
In a follow-up study of 98 politically engaged, young gender and sexuality diverse people, we found that online violence and a lack of workplace safety were some of the biggest barriers for them in considering a career in politics.
We expect the personal harassment of queer politicians will continue to escalate across multiple platforms, including X, Facebook and Instagram.
For instance, we have seen a sharp rise in anti-LGBTIQ+ hate and extremism across the United States. Online spaces are likely to become even less safe for queer politicians in 2025, than they were in 2022.
Big tech is making it easier for abuse and harassment to flourish in the online world.
Musk has fired 80% of engineers responsible for content regulation on X. He has also liked transphobic tweets and deemed the words “cis and “cisgender ” to be slurs, that were subsequently banned on X.
Meta’s Mark Zuckerberg has also removed protections that prevented hate speech on Facebook.
More users are deserting X due to the malicious content and lack of safeguards. But with a closely integrated social media environment, online violence can follow politicians across platforms, both social and legacy. There is no escaping the bile.
Social media regulation is difficult. Tech giants have already threatened to withdraw their services from Australia over laws that would force them to pay for news content.
Online platforms may claim to only be the “messenger”, but the reality is that design features like anonymity and business decisions like removing content moderation will cause even more harm.
Until a critical mass of countries demand better protections, some individuals, including queer politicians, will always be at a disadvantage in this asymmetric online war.
Elise Stephenson receives funding from the Australian Research Council. Elise is part of research projects funded by the eSafety Commissioner on combating online violence. The research quoted in this article received funding from the Gender Institute at the ANU.
Gosia Mikolajczak collaborates with Women for Election on a project funded by the Australian Government Office for Women, aiming to increase the number and diversity of women running for public office. She has previously worked on an Australian Research Council Linkage project that examined gender inequalities in local government in Victoria.
Blair Williams and Jack Hayes do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.
– ref. Australian LGBTIQ+ politicians were hit with vile online abuse at the last federal election. The coming campaign could be even worse – https://theconversation.com/australian-lgbtiq-politicians-were-hit-with-vile-online-abuse-at-the-last-federal-election-the-coming-campaign-could-be-even-worse-250039
Source: United Nations General Assembly and Security Council
During a day-long Security Council debate on practicing multilateralism and reforming global governance today, speakers stressed the urgent need to update the United Nations — founded 80 years ago — including reforms to the Council itself and to the global economic order to better address twenty-first-century challenges.
“One can draw a direct line between the creation of the United Nations and the prevention of a third world war,” said António Guterres, Secretary-General of the United Nations, recalling that the UN was “born out of the ashes” of the second. The UN remains the “essential, one-of-a-kind meeting ground to advance peace, sustainable development and human rights”, he said. However, “eight decades is a long time”, he said, emphasizing that while the “hardware” for international cooperation exists, “the software needs an update”.
As global challenges demand multilateral solutions, he pointed out that the Pact for the Future puts forward concrete solutions to strengthen the machinery of peace, advance coordination with regional organizations and includes the first multilateral agreement on nuclear disarmament in more than a decade. It also includes efforts to prevent an arms race in outer space, advance discussions on lethal autonomous weapons and recognizes the UN’s role in preventive diplomacy.
“But the Pact does even more for peace,” he said, as it recognizes that the international community must address the root causes of conflict and tension and that the Council “must reflect the world of today”. Guided by the Pact, he said that multilateralism — “the beating heart of the United Nations” — can became an even more powerful instrument of peace. “But multilateralism is only as strong as each and every country’s commitment to it,” he added, urging all Member States to continue updating global problem-solving mechanisms to “make them fit for purpose, fit for people and fit for peace”.
Shift of Power to Global South
Wang Yi, Minister for Foreign Affairs of China — Council President for February — then spoke in his national capacity to recall that representatives of his country were the first to sign the Charter of the United Nations, “writing with the Chinese calligraphy brush an important chapter in world history”. Now, though, comprehensive peace and shared prosperity remain elusive. Noting the rise of the Global South on the world stage, he insisted that “international affairs should no longer be monopolized by a small number of countries” and the fruits of global development should not be enjoyed by only a few countries. China, as the world’s largest developing country, has become the major trading partner of more than 150 countries and regions and is promoting high-quality Belt and Road cooperation to contribute to global prosperity and development.
“The continuing inequalities of the global financial system have further aggravated today’s crises,” said Mohammad Ishaq Dar, Deputy Prime Minister and Minister for Foreign Affairs of Pakistan, adding that “the very fabric of the world order established under the UN Charter is in danger of being torn apart”. Urging reform of the International Monetary Fund (IMF) and the World Bank, he pointed out that the current system favours the rich, while developing nations are trapped in a cycle of poverty and debt.
Also underlining the need to reform the global economic order, Selma Bakhta Mansouri, Secretary of State to the Minister for Foreign Affairs of Algeria, said that current financial arrangements are largely led by developed States. It is necessary to ensure a “flexible and sustainable financing mechanism for African States and to work towards improving or easing their debt burden,” she stressed. She also noted that Africa represents more than a quarter of UN Member States, but continues to be deprived of permanent representation on the Council.
Similarly, Francess Piagie Alghali, Deputy Minister for Foreign Affairs and International Cooperation of Sierra Leone, said that Africa remains the most glaring victim of inequitable Council composition. Without structural reform, the organ’s performance and legitimacy will continue to be questioned, she said, also highlighting Africa’s exclusion from multilateral development banks. Highlighting the African Union’s theme of the year — Justice for Africans and People of African Descent through Reparations — she stressed the need to urgently rectify the historical injustices perpetuated against the continent.
Push for Two Permanent Security Council Seats for Africa
Ahmed Moallim Fiqi, Minister for Foreign Affairs and International Cooperation of Somalia, also reiterated the need for a “deep-rooted reform” of the Council, stressing that African States should be granted two permanent seats that include the right to veto. Stating that the UN Charter must be the “linchpin” and “our lodestar” as the international community embarks on reforming the multilateral system, he also noted that Council resolutions are being trampled upon, calling for effective mechanisms to bolster the UN’s capacity to guarantee international peace and security.
“It is illogical that Africa does not feature among permanent members,” observed France’s representative, underscoring: “That must change.” Two African States must hold permanent seats on the Council, and he added that Africa’s demand for veto power is “legitimate”. The representative of Denmark, in that vein, stated that the world needs a more-representative Council — “one which redresses the historical injustice done to the African continent”. She added: “We cannot seriously tackle the issues facing multilateralism when the Security Council continues to operate in a reality of yesteryear.”
“The Security Council is arguably the least representative and most undemocratic of global institutions,” added Guyana’s representative, pointing out that the Council faces the risk of becoming irrelevant. “We have seen repeatedly how the current structure and decision-making format — particularly the use of the veto — have thwarted the will” of the wider membership, she said. Greece’s representative, for his part, expressed support for “any model of reform that is fair, strengthens the UN as a whole and transforms the Security Council into a more democratic, efficient, representative and accountable body”.
Russian Federation, China Accused of Being Drivers of Instability
Meanwhile, the representative of the United States said that “two of the greatest drivers of instability in the world today hold veto power”, spotlighting the Russian Federation’s bloody war in Ukraine and China’s exploitation of its developing-nation status. “We need to take a close look at where this institution is falling short,” she added. Therefore, the United States is currently reviewing its support to the UN, and she said that “we will consider whether actions of the Organization are serving American interests, and whether it can be reformed”.
As to why the UN is falling short of its ambitions, the representative of the United Kingdom observed that “there is more to this than the often-mentioned liquidity crisis”. While the Organization’s membership has increased, it is not fully representative of today’s “multipolar world”, she said. Further, the Council is often characterized as “ineffective geopolitical theatre”, and she added that — while reform is needed — “this body has the tools to implement its peace and security mandate”.
“It is time to rescue multilateralism from ruinous mistrust,” stressed Panama’s representative, urging States to ensure that, rather that floundering, the system flourishes and prospers. Observing that his country has been reaping the rewards of multilateralism since its independence, he said that diplomatic efforts lead to the end of the colonial enclave and to the recovery of “our Canal”.
BRICS Surpasses G7 in Gross Domestic Product
The representative of the Russian Federation noted that developed countries have siphoned off $62 trillion in resources from the Global South since 1960, highlighting Moscow’s efforts to advance anti-colonial agendas at the UN. And “there have been tectonic shifts in the global economy”, with BRICS (Brazil, Russian Federation, India, China, South Africa) accounting for 37 per cent of the global gross domestic product (GDP), surpassing 29 per cent represented by the Group of 7 (G7) countries, he added, stressing the need for a more equitable global financial architecture. Rejecting the West’s domination at the Security Council as “a relic of the past”, he said that his country advocates for indivisible security in Eurasia without infringing on others’ interests.
“It is extraordinary that 193 Member States — with each of us at different stages of political and economic development, like-minded or even antagonistic — gather every day in this very building to discuss and solve current and future issues,” observed the representative of the Republic of Korea. “This should not be taken for granted,” he stressed, stating that the UN’s convening role is the “driving engine of multilateralism”. Slovenia’s representative, similarly, noted that the UN “enabled the power of rules to replace the rule of power”. Citing former Secretary-General Dag Hammarskjöld, he said: “It is not big Powers who need the UN for their protection. It is all the others.”
Unilateralism Versus Multilateralism
As the floor opened to the wider membership, Celinda Sosa Lunda, Minister for Foreign Affairs of Bolivia, pointed to the need for radical change within the UN structure in view of the myriad threats to the planet’s very existence. “We are fighting for the transition towards a multipolar world,” she stressed. “Today the world is in a state of flux,” said Jeje Odongo Abubakhar, Minister for Foreign Affairs of Uganda, pointing to the “palpable loss of trust” in age-old institutions and mechanisms. Observing that many world leaders now favour unilateralism, he stressed: “The future of multilateralism depends on the willingness of State and non-State actors to re-imagine and revitalize the system.”
On that, Carlos Fernández de Cossío, Vice Minister for Foreign Affairs of Cuba, said that it has become crucial to defend multilateralism given “the withdrawal of the world’s greatest Power from international bodies”. He also opposed “trends towards the privatization of the Organization, turning it into a tool that represents the interests of major Powers and large transnational capital”. Meanwhile, Péter Szijjártó, Minister for Foreign Affairs and Trade of Hungary, said that, during the “global dictatorship of the international liberal mainstream”, the UN has failed to be a platform for peace. He therefore stressed that the UN must adjust itself to the new global political reality or “lose its significance”.
Waleed Abdul Karim El-Khereiji, Vice Minister for Foreign Affairs of Saudi Arabia, also said that the increasing crisis of confidence in the UN demands reform. Further, “current bloody incidents” call for firm responses from the multilateral system. “No people should feel abandoned by the international community,” stressed Fedor Rosocha, Director General of the Directorate for International Organizations and Human Rights in the Ministry for Foreign and European Affairs of Slovakia, stressing that the Council must not be passive in the fact of conflict, crisis and atrocity.
The fact that “no new world war has happened” is not a consolation to Ukrainians whose towns have been destroyed, observed Mariana Betsa, Deputy Minister for Foreign Affairs of Ukraine. Multilateral institutions are being undermined from within, she said, urging that permanent Council members be limited in their use of the veto when they have a conflict of interest in the matter under consideration. She added: “If the UN begins to resemble a boxing ring — with fighters, their supporters and passive spectators — the prospects for global security will be bleak.”
Source: GlobeNewswire (MIL-OSI)
HAMILTON, Bermuda, Feb. 18, 2025 (GLOBE NEWSWIRE) — SiriusPoint Ltd. (“SiriusPoint” or the “Company”) (NYSE:SPNT) today announced results for its fourth quarter ended December 31, 2024
Scott Egan, Chief Executive Officer, said: “2024 has been a remarkable year of delivery for SiriusPoint. Despite increased catastrophe activity, our Core combined ratio has improved meaningfully from last year to 91.0%, excluding the impact from the loss portfolio transfer in 2023. Our 4.2 point improvement in attritional loss ratio demonstrates our focus on improving the quality of our underwriting. We saw 21% growth of gross premiums written for the quarter and 10% for the full year for our continuing lines business.
Our underlying return on equity of 14.6% is at the upper end of the 12-15% target range set out a year ago. In optimizing our capital position, we have returned over $1 billion to investors during 2024 while maintaining robust capital ratios, due to our strong performance, reshaping actions, and capital generation over the past two years.
We have strengthened our underlying business performance year-over-year, providing a strong basis for 2025. While this quarter our net income was impacted by several one-off items, we see 2024 as the end of the repositioning and reshaping of the Company. Our efforts are now fully focused on both growing the business and continuing to enhance performance.
I take great pride in the accomplishments of the SiriusPoint team, who have worked with commitment and dedication to produce improvements in our underlying results, quarter after quarter. I am immensely grateful for all that they do every day for our customers, partners and shareholders.”
Fourth Quarter 2024 Highlights
Year Ended December 31, 2024
Key Financial Metrics
The following table shows certain key financial metrics for the three and twelve months ended December 31, 2024 and 2023:
| Three months ended | Twelve months ended | ||||||||||||||
| December 31, 2024 |
December 31, 2023 |
December 31, 2024 |
December 31, 2023 |
||||||||||||
| ($ in millions, except for per share data and ratios) | |||||||||||||||
| Combined ratio | 94.4 | % | 93.6 | % | 88.3 | % | 84.5 | % | |||||||
| Core underwriting income (1) | $ | 56.3 | $ | 37.0 | $ | 200.0 | $ | 250.2 | |||||||
| Core net services income (1) | $ | 10.4 | $ | 9.3 | $ | 44.6 | $ | 41.2 | |||||||
| Core income (1) | $ | 66.7 | $ | 46.3 | $ | 244.6 | $ | 291.4 | |||||||
| Core combined ratio (1) | 90.2 | % | 93.4 | % | 91.0 | % | 89.1 | % | |||||||
| Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders | (4.0 | )% | 17.1 | % | 9.1 | % | 16.2 | % | |||||||
| Book value per common share | $ | 14.92 | $ | 13.76 | $ | 14.92 | $ | 13.76 | |||||||
| Book value per diluted common share | $ | 14.60 | $ | 13.35 | $ | 14.60 | $ | 13.35 | |||||||
| Book value per diluted common share ex. AOCI (1) | $ | 14.64 | $ | 13.33 | $ | 14.64 | $ | 13.33 | |||||||
| Tangible book value per diluted common share (1) | $ | 13.42 | $ | 12.47 | $ | 13.42 | $ | 12.47 | |||||||
| (1) | Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. See definitions in “Non-GAAP Financial Measures” and reconciliations in “Segment Reporting.” Book value per diluted common share ex. AOCI and tangible book value per diluted common share are non-GAAP financial measures. See definition and reconciliation in “Non-GAAP Financial Measures.” |
Fourth Quarter 2024 Summary
Consolidated underwriting income for the three months ended December 31, 2024 was $32.7 million compared to $36.7 million for the three months ended December 31, 2023. The decrease was primarily driven by higher catastrophe losses, partially offset by an increase in favorable prior year loss reserve development. Catastrophe losses, net of reinsurance and reinstatement premiums, were $38.6 million, or 6.5 percentage points on the combined ratio, for the three months ended December 31, 2024 mainly from Hurricane Milton, compared to minimal losses for the three months ended December 31, 2023. Favorable prior year reserve development was $37.3 million primarily driven by favorable development in Reinsurance, mainly in Property and Specialty from reserve releases relating to prior year’s catastrophe events, as well as in Insurance & Services, mainly due to lower than expected reported attritional losses in A&H, compared to $11.1 million for the three months ended December 31, 2023 which included reserve strengthening for specific areas of uncertainty for the loss reserves.
Consolidated underwriting income for the year ended December 31, 2024 was $276.4 million compared to $375.9 million for the year ended December 31, 2023. The decrease was primarily driven by lower favorable prior year loss reserve development as the year ended December 31, 2023 included $127.8 million driven by reserving analyses performed in connection with the loss portfolio transfer transaction with Pallas Reinsurance Company Ltd that closed on June 30, 2023 (“2023 LPT”). Excluding the favorable development linked to the 2023 LPT, underwriting income increased by $15.8 million primarily driven by favorable development in Reinsurance, as well as lower attritional losses in both Reinsurance and Insurance & Services, partially offset by higher acquisition costs from business mix changes, including the growth of Insurance & Services, and higher catastrophe losses. Catastrophe losses, net of reinsurance and reinstatement premiums, were $54.8 million, or 2.3 percentage points on the combined ratio, for the year ended December 31, 2024, primarily driven by Hurricanes Milton and Helene, compared to $24.8 million, or 1.0 percentage points on the combined ratio, for the year ended December 31, 2023, primarily driven by the Turkey Earthquake and Chile Wildfire.
Reportable Segments
The determination of our reportable segments is based on the manner in which management monitors the performance of our operations, which consist of two reportable segments – Reinsurance and Insurance & Services.
Collectively, the sum of our two segments, Reinsurance and Insurance & Services, constitute our “Core” results. Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. See reconciliations in “Segment Reporting”. We believe it is useful to review Core results as it better reflects how management views the business and reflects our decision to exit the runoff business. The sum of Core results and Corporate results are equal to the consolidated results of operations.
Three months ended December 31, 2024 and 2023
Core Premium Volume
Gross premiums written increased by $42.7 million, or 5.9%, to $762.5 million for the three months ended December 31, 2024 compared to $719.8 million for the three months ended December 31, 2023. Net premiums earned increased by $23.2 million, or 4.2%, to $581.6 million for the three months ended December 31, 2024 compared to $558.4 million for the three months ended December 31, 2023. The increases in premium volume were primarily driven by increases in Insurance & Services from strategic organic and new program growth, as well higher A&H premiums, and in Reinsurance in Specialty and Property from new business and renewal growth. These increases were partially offset by the movement of certain lines from Insurance & Services to Corporate, including the non-renewal of a Workers’ Compensation program and the planned transition of a Cyber program to another carrier, representing $89.9 million of gross premiums written for the three months ended December 31, 2023.
Core Results
Core results for the three months ended December 31, 2024 included income of $66.7 million compared to $46.3 million for the three months ended December 31, 2023. Income for the three months ended December 31, 2024 consists of underwriting income of $56.3 million (90.2% combined ratio) and net services income of $10.4 million, compared to underwriting income of $37.0 million (93.4% combined ratio) and net services income of $9.3 million for the three months ended December 31, 2023. The improvement in net underwriting results was primarily driven by increased favorable prior year loss reserve development and lower attritional losses, partially offset by higher catastrophe losses.
Losses incurred included $58.1 million of favorable prior year loss reserve development for the three months ended December 31, 2024 mainly in Property and Specialty from reserve releases relating to prior year’s catastrophe events, compared to $37.7 million for the three months ended December 31, 2023 driven by management reflecting the continued favorable reported loss emergence through December 31, 2023 in its best estimate of reserves.
Catastrophe losses, net of reinsurance and reinstatement premiums, for the three months ended December 31, 2024, were $38.6 million, or 6.6 percentage points on the combined ratio, mainly from Hurricane Milton, compared to minimal losses for the three months ended December 31, 2023. Despite increased catastrophe losses for the three months ended December 31, 2024, catastrophe losses for the year ended December 31, 2024 were in line with our expectations evidencing our actions to reduce our catastrophe exposed business during the last two years.
Year ended December 31, 2024 and 2023
Core Premium Volume
Gross premiums written decreased by $134.3 million, or 4.1%, to $3,176.4 million for the year ended December 31, 2024 compared to $3,310.7 million for the year ended December 31, 2023. Net premiums earned decreased by $81.5 million, or 3.6%, to $2,199.1 million for the year ended December 31, 2024 compared to $2,280.6 million for the year ended December 31, 2023. The decreases in premium volume were primarily due to the movement of certain lines from Insurance & Services to Corporate, including the non-renewal of a Workers’ Compensation program and the planned transition of a Cyber program to another carrier, representing $421.8 million of gross premiums written for the year ended December 31, 2023, with the most significant offset being strategic organic and new program growth within Insurance & Services.
Core Results
Core results for the year ended December 31, 2024 included income of $244.6 million compared to $291.4 million for the year ended December 31, 2023. Income for the year ended December 31, 2024 consists of underwriting income of $200.0 million (91.0% combined ratio) and net services income of $44.6 million, compared to underwriting income of $250.2 million (89.1% combined ratio) and net services income of $41.2 million for the year ended December 31, 2023. The decrease in net underwriting results was primarily driven by lower favorable prior year loss reserve development as the year ended December 31, 2023 included $104.8 million driven by reserving analyses performed in connection with the 2023 LPT.
Excluding the favorable development linked to the 2023 LPT, net underwriting income increased by $49.0 million primarily driven by favorable development in Reinsurance, mainly in Property and Specialty from reserve releases relating to prior year’s catastrophe events, as well as lower attritional losses in both Reinsurance and Insurance & Services, partially offset by higher acquisition costs from business mix changes, including the growth of Insurance & Services, and higher catastrophe losses.
For the year ended December 31, 2024 catastrophe losses, net of reinsurance and reinstatement premiums, were $54.8 million, or 2.5 percentage points on the combined ratio, which includes losses from Hurricanes Milton and Helene compared to $13.5 million, or 0.6 percentage points on the combined ratio, including losses from the Turkey Earthquake, Hawaii wildfires and Hurricane Idalia, for the year ended December 31, 2023.
Reinsurance Segment
Three months ended December 31, 2024 and 2023
Reinsurance gross premiums written were $312.2 million for the three months ended December 31, 2024, an increase of $60.5 million, or 24.0%, compared to the three months ended December 31, 2023, primarily driven by new business and renewal growth across Specialty and Property, partially offset by reduced premiums written in Casualty reflecting underwriting actions to improve profitability.
Reinsurance generated underwriting income of $18.3 million (93.2% combined ratio) for the three months ended December 31, 2024, compared to underwriting income of $27.8 million (88.6% combined ratio) for the three months ended December 31, 2023. The decrease in net underwriting results was primarily due to higher catastrophe losses, partially offset by increased favorable development. Catastrophe losses, net of reinsurance and reinstatement premiums, for the three months ended December 31, 2024, were $35.2 million, or 13.2 percentage points on the combined ratio, mainly from Hurricane Milton, compared to minimal losses for the three months ended December 31, 2023. Losses incurred included $41.8 million of favorable prior year loss reserve development for the three months ended December 31, 2024 mainly in Property and Specialty from reserve releases relating to prior year’s catastrophe events, compared to $21.1 million for the three months ended December 31, 2023 driven by management reflecting the continued favorable reported loss emergence through December 31, 2023 in its best estimate of reserves.
Year ended December 31, 2024 and 2023
Reinsurance gross premiums written were $1,335.6 million for the year ended December 31, 2024, an increase of $64.6 million, or 5.1%, compared to the year ended December 31, 2023, primarily driven by new business and renewal growth across Specialty and Property, partially offset by reduced premiums written in Casualty reflecting underwriting actions to improve profitability.
Reinsurance generated underwriting income of $124.8 million (88.0% combined ratio) for the year ended December 31, 2024, compared to underwriting income of $206.2 million (80.0% combined ratio) for the year ended December 31, 2023. The decrease in net underwriting results was primarily due to decreased favorable prior year loss reserve development and higher catastrophe losses, partially offset by lower attritional losses. Net favorable prior year loss reserve development was $75.0 million for the year ended December 31, 2024 primarily driven by favorable development in Property and Specialty from reserve releases relating to prior year’s catastrophe events, compared to $140.8 million for the year ended December 31, 2023, which included $93.0 million driven by reserving analyses performed in connection with the 2023 LPT.
For the year ended December 31, 2024, catastrophe losses, net of reinsurance and reinstatement premiums, were $49.5 million, or 4.7 percentage points on the combined ratio, which includes losses from Hurricanes Milton and Helene compared to $12.2 million, or 1.2 percentage points on the combined ratio, including losses from the Turkey Earthquake, Hawaii wildfires and Hurricane Idalia for the year ended December 31, 2023.
Insurance & Services Segment
Three months ended December 31, 2024 and 2023
Insurance & Services gross premiums written were $450.3 million for the three months ended December 31, 2024, a decrease of $17.8 million, or 3.8%, compared to the three months ended December 31, 2023, primarily driven by the movement of certain lines from Insurance & Services to Corporate, including the non-renewal of a Workers’ Compensation program and the planned transition of a Cyber program to another carrier, representing $89.9 million of gross premiums written for the three months ended December 31, 2023, partially offset by strategic organic and new program growth, as well higher A&H premiums.
Insurance & Services generated segment income of $48.4 million for the three months ended December 31, 2024, compared to $16.8 million for the three months ended December 31, 2023. Segment income for the three months ended December 31, 2024 consists of underwriting income of $38.0 million (87.9% combined ratio) and net services income of $10.4 million, compared to underwriting income of $9.2 million (97.0% combined ratio) and net services income of $7.6 million for the three months ended December 31, 2023. The improvement in underwriting results was primarily driven by our decreased loss ratio mainly from lower attritional losses, partially offset by higher acquisition costs from business mix changes as we grow our Insurance & Services segment.
Year ended December 31, 2024 and 2023
Insurance & Services gross premiums written were $1,840.8 million for the year ended December 31, 2024, a decrease of $198.9 million, or 9.8%, compared to the year ended December 31, 2023, primarily driven by the movement of certain lines from Insurance & Services to Corporate, including the non-renewal of a Workers’ Compensation program and the planned transition of a Cyber program to another carrier, representing $421.8 million of gross premiums written for the year ended December 31, 2023, as well as lower A&H premiums, partially offset by strategic organic and new program growth.
Insurance & Services generated segment income of $119.8 million for the year ended December 31, 2024, compared to income of $86.3 million for the year ended December 31, 2023. Segment income for the year ended December 31, 2024 consists of underwriting income of $75.2 million (93.5% combined ratio) and net services income of $44.6 million, compared to underwriting income of $44.0 million (96.5% combined ratio) and net services income of $42.3 million for the year ended December 31, 2023. The improvement in underwriting income of $31.2 million for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily driven by our decreased loss ratio mainly from lower attritional losses, partially offset by higher acquisition costs from business mix changes as we grow our Insurance & Services segment.
As of December 31, 2024, we have equity stakes in 20 entities (managing general agents (“MGAs”), Insurtech and Other) compared to 36 at the start of 2023. We continue to rationalize our MGA equity stakes and realize the significant off-balance sheet value of our consolidated MGAs, with 6 of these rationalized in 2024. Book value for our three consolidated MGAs was $90.1 million as of December 31, 2024, compared to $76.3 million at December 31, 2023, when adjusted to exclude Arcadian Risk Capital Ltd. which we deconsolidated on June 30, 2024.
Investments
Three months ended December 31, 2024 and 2023
Total net investment income and realized and unrealized investment gains (losses) for the three months ended December 31, 2024 was primarily attributable to net investment income related to interest income from our debt portfolio of $61.2 million, partially offset by unrealized losses resulting from fair value analyses on our strategic investment portfolio.
Total net investment income and realized and unrealized investment gains (losses) for the three months ended December 31, 2023 was primarily attributable to investment results from our debt and short-term investment portfolio of $68.5 million. This result was driven by interest income primarily on securitized assets and corporate debt positions, which made up 65.6% of our total investments as of December 31, 2023.
Year ended December 31, 2024 and 2023
Total net investment income and realized and unrealized investment gains (losses) for the year ended December 31, 2024 was primarily attributable to net investment income related to interest income from our debt and short-term investment portfolio of $289.7 million, partially offset by unrealized losses on other long-term investments of $70.0 million. Increased investment income is primarily due to the rotation of the portfolio from cash and cash equivalents and U.S. government and government agency positions to high-grade corporate debt and other securitized assets, in an effort to better diversify our portfolio. Losses on private other long-term investments were the result of updated fair value analyses consistent with the current insurtech market trends and disposals of positions as we execute our strategy to focus on underwriting relationships with MGAs.
Total net investment income and realized and unrealized investment gains (losses) for the year ended December 31, 2023 was primarily attributable to net investment income related to interest income from our debt and short-term investment portfolio of $277.0 million.
Webcast Details
The Company will hold a webcast to discuss its fourth quarter 2024 results at 8:30 a.m. Eastern Time on February 19, 2025. The webcast of the conference call will be available over the Internet from the Company’s website at www.siriuspt.com under the “Investor Relations” section. Participants should follow the instructions provided on the website to download and install any necessary audio applications. The conference call will be available by dialing 1-877-451-6152 (domestic) or 1-201-389-0879 (international). Participants should ask for the SiriusPoint Ltd. fourth quarter 2024 earnings call.
The online replay will be available on the Company’s website immediately following the call at www.siriuspt.com under the “Investor Relations” section.
Safe Harbor Statement Regarding Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the Company’s control. The Company cautions you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “believes,” “intends,” “seeks,” “anticipates,” “aims,” “plans,” “targets,” “estimates,” “expects,” “assumes,” “continues,” “guidance,” “should,” “could,” “will,” “may” and the negative of these or similar terms and phrases. Specific forward-looking statements in this press release include, but are not limited to, statements regarding the trend of our performance as compared to the previous guidance, the success of our strategic transaction with CMIG International Holding Pte. Ltd., the current insurtech market trends, our ability to generate shareholder value and whether we will continue to have momentum in our business in the future. Actual events, results and outcomes may differ materially from the Company’s expectations due to a variety of known and unknown risks, uncertainties and other factors. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements are the following: our ability to execute on our strategic transformation, including re-underwriting to reduce volatility and improve underwriting performance, de-risking our investment portfolio, and transforming our business; the impact of unpredictable catastrophic events, including uncertainties with respect to current and future COVID-19 losses across many classes of insurance business and the amount of insurance losses that may ultimately be ceded to the reinsurance market, supply chain issues, labor shortages and related increased costs, changing interest rates and equity market volatility; inadequacy of loss and loss adjustment expense reserves, the lack of available capital, and periods characterized by excess underwriting capacity and unfavorable premium rates; the performance of financial markets, impact of inflation and interest rates, and foreign currency fluctuations; our ability to compete successfully in the insurance and reinsurance market and the effect of consolidation in the insurance and reinsurance industry; technology breaches or failures, including those resulting from a malicious cyber-attack on us, our business partners or service providers; the effects of global climate change, including increased severity and frequency of weather-related natural disasters and catastrophes, including wildfires, and increased coastal flooding in many geographic areas; geopolitical uncertainty, including the ongoing conflicts in Europe and the Middle East and the new presidential administration in the U.S.; our ability to retain key senior management and key employees; a downgrade or withdrawal of our financial ratings; fluctuations in our results of operations; legal restrictions on certain of SiriusPoint’s insurance and reinsurance subsidiaries’ ability to pay dividends and other distributions to SiriusPoint; the outcome of legal and regulatory proceedings and regulatory constraints on our business; reduced returns or losses in SiriusPoint’s investment portfolio; our exposure or potential exposure to corporate income tax in Bermuda and the E.U., U.S. federal income and withholding taxes and our significant deferred tax assets, which could become devalued if we do not generate future taxable income or applicable corporate tax rates are reduced; risks associated with delegating authority to third party managing general agents; future strategic transactions such as acquisitions, dispositions, investments, mergers or joint ventures; SiriusPoint’s response to any acquisition proposal that may be received from any party, including any actions that may be considered by the Company’s Board of Directors or any committee thereof; and other risks and factors listed under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and other subsequent periodic reports filed with the Securities and Exchange Commission.
All forward-looking statements speak only as of the date made and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures and Other Financial Metrics
In presenting SiriusPoint’s results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (“GAAP”). SiriusPoint’s management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of SiriusPoint’s financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. Core underwriting income, Core net services income, Core income, and Core combined ratio are non-GAAP financial measures. Management believes it is useful to review Core results as it better reflects how management views the business and reflects the Company’s decision to exit the runoff business. Book value per diluted common share excluding accumulated other comprehensive income (loss) (“AOCI”) and tangible book value per diluted common share, as presented, are non-GAAP financial measures and the most directly comparable U.S. GAAP measure is book value per common share. Management believes it is useful to exclude AOCI because it may fluctuate significantly between periods based on movements in interest and currency rates. Management believes the effects of intangible assets are not indicative of underlying underwriting results or trends and make book value comparisons to less acquisitive peer companies less meaningful. Underlying net income is a non-GAAP financial measure and the most directly comparable U.S. GAAP measure is net income. Underlying net income excludes items which we believe are not indicative of the operations of our underlying businesses. Management believes it is useful to review underlying net income as it better reflects how we view the business, as well as provides investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics. Underlying return on average common shareholders’ equity is calculated by dividing underlying net income available to SiriusPoint common shareholders for the period by the average common shareholders’ equity, excluding AOCI. Reconciliations of such non-GAAP financial measures to the most directly comparable GAAP figures are included in the attached financial information in accordance with Regulation G and Item 10(e) of Regulation S-K, as applicable.
About the Company
SiriusPoint is a global underwriter of insurance and reinsurance providing solutions to clients and brokers around the world. Bermuda-headquartered with offices in New York, London, Stockholm and other locations, we are listed on the New York Stock Exchange (SPNT). We have licenses to write Property & Casualty and Accident & Health insurance and reinsurance globally. Our offering and distribution capabilities are strengthened by a portfolio of strategic partnerships with Managing General Agents and Program Administrators. With approximately $2.6 billion total capital, SiriusPoint’s operating companies have a financial strength rating of A- (Stable) from AM Best, S&P and Fitch, and A3 (Stable) from Moody’s. For more information please visit www.siriuspt.com.
Contacts
Investor Relations
Liam Blackledge – Investor Relations and Strategy Manager
Liam.Blackledge@siriuspt.com
+ 44 203 772 3082
Media
Natalie King – Global Head of Marketing and External Communications
Natalie.King@siriuspt.com
+ 44 20 3772 3102
| SIRIUSPOINT LTD. CONSOLIDATED BALANCE SHEETS (UNAUDITED) As of December 31, 2024 and December 31, 2023 (expressed in millions of U.S. dollars, except per share and share amounts) |
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| December 31, 2024 |
December 31, 2023 |
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| Assets | |||||||
| Debt securities, available for sale, at fair value, net of allowance for credit losses of $1.1 (2023 – $0.0) (cost – $5,143.8; 2023 – $4,754.6) | $ | 5,131.0 | $ | 4,755.4 | |||
| Debt securities, trading, at fair value (cost – $187.3; 2023 – $568.1) | 162.2 | 534.9 | |||||
| Short-term investments, at fair value (cost – $95.3; 2023 – $370.8) | 95.8 | 371.6 | |||||
| Investments in related party investment funds, at fair value | 116.5 | 105.6 | |||||
| Other long-term investments, at fair value (cost – $317.8; 2023 – $358.1) (includes related party investments at fair value of $100.7 (2023 – $173.7)) | 200.0 | 310.1 | |||||
| Total investments | 5,705.5 | 6,077.6 | |||||
| Cash and cash equivalents | 682.0 | 969.2 | |||||
| Restricted cash and cash equivalents | 212.6 | 132.1 | |||||
| Redemption receivable from related party investment fund | — | 3.0 | |||||
| Due from brokers | 11.2 | 5.6 | |||||
| Interest and dividends receivable | 44.0 | 42.3 | |||||
| Insurance and reinsurance balances receivable, net | 2,054.4 | 1,966.3 | |||||
| Deferred acquisition costs, net | 327.5 | 308.9 | |||||
| Unearned premiums ceded | 463.9 | 449.2 | |||||
| Loss and loss adjustment expenses recoverable, net | 2,315.3 | 2,295.1 | |||||
| Deferred tax asset | 297.0 | 293.6 | |||||
| Intangible assets | 140.8 | 152.7 | |||||
| Other assets | 270.7 | 175.9 | |||||
| Total assets | $ | 12,524.9 | $ | 12,871.5 | |||
| Liabilities | |||||||
| Loss and loss adjustment expense reserves | $ | 5,653.9 | $ | 5,608.1 | |||
| Unearned premium reserves | 1,639.2 | 1,627.3 | |||||
| Reinsurance balances payable | 1,781.6 | 1,736.7 | |||||
| Deposit liabilities | 17.4 | 134.4 | |||||
| Deferred gain on retroactive reinsurance | 8.5 | 27.9 | |||||
| Debt | 639.1 | 786.2 | |||||
| Due to brokers | 18.0 | 6.2 | |||||
| Deferred tax liability | 76.2 | 68.7 | |||||
| Liability-classified capital instruments | — | 67.3 | |||||
| Share repurchase liability | 483.0 | — | |||||
| Accounts payable, accrued expenses and other liabilities | 269.2 | 278.1 | |||||
| Total liabilities | 10,586.1 | 10,340.9 | |||||
| Commitments and contingent liabilities | |||||||
| Shareholders’ equity | |||||||
| Series B preference shares (par value $0.10; authorized and issued: 8,000,000) | 200.0 | 200.0 | |||||
| Common shares (issued and outstanding: 116,429,057; 2023 – 168,120,022) | 11.6 | 16.8 | |||||
| Additional paid-in capital | 945.0 | 1,693.0 | |||||
| Retained earnings | 784.9 | 601.0 | |||||
| Accumulated other comprehensive income (loss), net of tax | (4.1 | ) | 3.1 | ||||
| Shareholders’ equity attributable to SiriusPoint shareholders | 1,937.4 | 2,513.9 | |||||
| Noncontrolling interests | 1.4 | 16.7 | |||||
| Total shareholders’ equity | 1,938.8 | 2,530.6 | |||||
| Total liabilities, noncontrolling interests and shareholders’ equity | $ | 12,524.9 | $ | 12,871.5 | |||
| SIRIUSPOINT LTD. CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) For the three and twelve months ended December 31, 2024 and 2023 (expressed in millions of U.S. dollars, except per share and share amounts) |
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| Three months ended | Twelve months ended | ||||||||||||||
| December 31, 2024 |
December 31, 2023 |
December 31, 2024 |
December 31, 2023 |
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| Revenues | |||||||||||||||
| Net premiums earned | $ | 590.3 | $ | 578.0 | $ | 2,343.5 | $ | 2,426.2 | |||||||
| Net investment income | 68.9 | 78.4 | 303.6 | 283.7 | |||||||||||
| Net realized and unrealized investment losses | (40.7 | ) | (12.4 | ) | (88.7 | ) | (10.0 | ) | |||||||
| Net realized and unrealized investment gains (losses) from related party investment funds | 0.8 | (1.0 | ) | 9.7 | (1.0 | ) | |||||||||
| Net investment income and net realized and unrealized investment gains (losses) | 29.0 | 65.0 | 224.6 | 272.7 | |||||||||||
| Other revenues | 19.4 | 17.8 | 184.2 | 97.8 | |||||||||||
| Loss on settlement and change in fair value of liability-classified capital instruments | (25.9 | ) | (15.0 | ) | (148.5 | ) | (59.4 | ) | |||||||
| Total revenues | 612.8 | 645.8 | 2,603.8 | 2,737.3 | |||||||||||
| Expenses | |||||||||||||||
| Loss and loss adjustment expenses incurred, net | 369.1 | 365.4 | 1,368.5 | 1,381.3 | |||||||||||
| Acquisition costs, net | 134.6 | 111.7 | 516.9 | 472.7 | |||||||||||
| Other underwriting expenses | 53.9 | 64.2 | 181.7 | 196.3 | |||||||||||
| Net corporate and other expenses | 58.1 | 64.5 | 232.1 | 258.2 | |||||||||||
| Intangible asset amortization | 3.0 | 2.9 | 11.9 | 11.1 | |||||||||||
| Interest expense | 19.6 | 19.8 | 69.6 | 64.1 | |||||||||||
| Foreign exchange (gains) losses | (12.9 | ) | 19.2 | (10.0 | ) | 34.9 | |||||||||
| Total expenses | 625.4 | 647.7 | 2,370.7 | 2,418.6 | |||||||||||
| Income (loss) before income tax (expense) benefit | (12.6 | ) | (1.9 | ) | 233.1 | 318.7 | |||||||||
| Income tax (expense) benefit | (4.4 | ) | 101.6 | (30.7 | ) | 45.0 | |||||||||
| Net income (loss) | (17.0 | ) | 99.7 | 202.4 | 363.7 | ||||||||||
| Net income attributable to noncontrolling interests | (0.3 | ) | (2.2 | ) | (2.5 | ) | (8.9 | ) | |||||||
| Net income (loss) available to SiriusPoint | (17.3 | ) | 97.5 | 199.9 | 354.8 | ||||||||||
| Dividends on Series B preference shares | (4.0 | ) | (4.0 | ) | (16.0 | ) | (16.0 | ) | |||||||
| Net income (loss) available to SiriusPoint common shareholders | $ | (21.3 | ) | $ | 93.5 | $ | 183.9 | $ | 338.8 | ||||||
| Earnings (loss) per share available to SiriusPoint common shareholders | |||||||||||||||
| Basic earnings (loss) per share available to SiriusPoint common shareholders | $ | (0.13 | ) | $ | 0.52 | $ | 1.06 | $ | 1.93 | ||||||
| Diluted earnings (loss) per share available to SiriusPoint common shareholders | $ | (0.13 | ) | $ | 0.50 | $ | 1.04 | $ | 1.85 | ||||||
| Weighted average number of common shares used in the determination of earnings (loss) per share | |||||||||||||||
| Basic | 161,378,360 | 166,640,624 | 166,537,394 | 163,341,448 | |||||||||||
| Diluted | 161,378,360 | 173,609,940 | 169,470,681 | 169,607,348 | |||||||||||
| SIRIUSPOINT LTD. SEGMENT REPORTING |
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| Three months ended December 31, 2024 | |||||||||||||||||||||||||||
| Reinsurance | Insurance & Services |
Core | Eliminations (2) |
Corporate | Segment Measure Reclass |
Total | |||||||||||||||||||||
| Gross premiums written | $ | 312.2 | $ | 450.3 | $ | 762.5 | $ | — | $ | (3.0 | ) | $ | — | $ | 759.5 | ||||||||||||
| Net premiums written | 237.5 | 322.7 | 560.2 | — | 4.8 | — | 565.0 | ||||||||||||||||||||
| Net premiums earned | 265.9 | 315.7 | 581.6 | — | 8.7 | — | 590.3 | ||||||||||||||||||||
| Loss and loss adjustment expenses incurred, net | 148.3 | 175.3 | 323.6 | (1.4 | ) | 46.9 | — | 369.1 | |||||||||||||||||||
| Acquisition costs, net | 73.1 | 77.8 | 150.9 | (27.6 | ) | 11.3 | — | 134.6 | |||||||||||||||||||
| Other underwriting expenses | 26.2 | 24.6 | 50.8 | — | 3.1 | — | 53.9 | ||||||||||||||||||||
| Underwriting income (loss) | 18.3 | 38.0 | 56.3 | 29.0 | (52.6 | ) | — | 32.7 | |||||||||||||||||||
| Services revenues | — | 51.6 | 51.6 | (31.4 | ) | — | (20.2 | ) | — | ||||||||||||||||||
| Services expenses | — | 41.2 | 41.2 | — | — | (41.2 | ) | — | |||||||||||||||||||
| Net services income | — | 10.4 | 10.4 | (31.4 | ) | — | 21.0 | — | |||||||||||||||||||
| Segment income (loss) | 18.3 | 48.4 | 66.7 | (2.4 | ) | (52.6 | ) | 21.0 | 32.7 | ||||||||||||||||||
| Net investment income | 68.9 | — | 68.9 | ||||||||||||||||||||||||
| Net realized and unrealized investment losses | (40.7 | ) | — | (40.7 | ) | ||||||||||||||||||||||
| Net realized and unrealized investment gains from related party investment funds | 0.8 | — | 0.8 | ||||||||||||||||||||||||
| Other revenues | (0.8 | ) | 20.2 | 19.4 | |||||||||||||||||||||||
| Loss on settlement and change in fair value of liability-classified capital instruments | (25.9 | ) | — | (25.9 | ) | ||||||||||||||||||||||
| Net corporate and other expenses | (16.9 | ) | (41.2 | ) | (58.1 | ) | |||||||||||||||||||||
| Intangible asset amortization | (3.0 | ) | — | (3.0 | ) | ||||||||||||||||||||||
| Interest expense | (19.6 | ) | — | (19.6 | ) | ||||||||||||||||||||||
| Foreign exchange gains | 12.9 | — | 12.9 | ||||||||||||||||||||||||
| Income (loss) before income tax expense | $ | 18.3 | $ | 48.4 | 66.7 | (2.4 | ) | (76.9 | ) | — | (12.6 | ) | |||||||||||||||
| Income tax expense | — | — | (4.4 | ) | — | (4.4 | ) | ||||||||||||||||||||
| Net income (loss) | 66.7 | (2.4 | ) | (81.3 | ) | — | (17.0 | ) | |||||||||||||||||||
| Net income attributable to noncontrolling interest | — | — | (0.3 | ) | — | (0.3 | ) | ||||||||||||||||||||
| Net income (loss) available to SiriusPoint | $ | 66.7 | $ | (2.4 | ) | $ | (81.6 | ) | $ | — | $ | (17.3 | ) | ||||||||||||||
| Attritional losses | $ | 154.9 | $ | 188.2 | $ | 343.1 | $ | (1.4 | ) | $ | 26.1 | $ | — | $ | 367.8 | ||||||||||||
| Catastrophe losses | 35.2 | 3.4 | 38.6 | — | — | — | 38.6 | ||||||||||||||||||||
| Prior year loss reserve development | (41.8 | ) | (16.3 | ) | (58.1 | ) | — | 20.8 | — | (37.3 | ) | ||||||||||||||||
| Loss and loss adjustment expenses incurred, net | $ | 148.3 | $ | 175.3 | $ | 323.6 | $ | (1.4 | ) | $ | 46.9 | $ | — | $ | 369.1 | ||||||||||||
| Underwriting Ratios: (1) | |||||||||||||||||||||||||||
| Attritional loss ratio | 58.3 | % | 59.6 | % | 59.0 | % | 62.3 | % | |||||||||||||||||||
| Catastrophe loss ratio | 13.2 | % | 1.1 | % | 6.6 | % | 6.5 | % | |||||||||||||||||||
| Prior year loss development ratio | (15.7 | )% | (5.2 | )% | (10.0 | )% | (6.3 | )% | |||||||||||||||||||
| Loss ratio | 55.8 | % | 55.5 | % | 55.6 | % | 62.5 | % | |||||||||||||||||||
| Acquisition cost ratio | 27.5 | % | 24.6 | % | 25.9 | % | 22.8 | % | |||||||||||||||||||
| Other underwriting expenses ratio | 9.9 | % | 7.8 | % | 8.7 | % | 9.1 | % | |||||||||||||||||||
| Combined ratio | 93.2 | % | 87.9 | % | 90.2 | % | 94.4 | % | |||||||||||||||||||
| (1) | Underwriting ratios are calculated by dividing the related expense by net premiums earned. |
| (2) | Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards. |
| Three months ended December 31, 2023 | |||||||||||||||||||||||||||
| Reinsurance | Insurance & Services |
Core | Eliminations (2) |
Corporate | Segment Measure Reclass |
Total | |||||||||||||||||||||
| Gross premiums written | $ | 251.7 | $ | 468.1 | $ | 719.8 | $ | — | $ | (4.2 | ) | $ | — | $ | 715.6 | ||||||||||||
| Net premiums written | 194.9 | 263.3 | 458.2 | — | (3.6 | ) | — | 454.6 | |||||||||||||||||||
| Net premiums earned | 243.2 | 315.2 | 558.4 | — | 19.6 | — | 578.0 | ||||||||||||||||||||
| Loss and loss adjustment expenses incurred, net | 121.8 | 206.6 | 328.4 | (1.4 | ) | 38.4 | — | 365.4 | |||||||||||||||||||
| Acquisition costs, net | 65.5 | 66.8 | 132.3 | (31.6 | ) | 11.0 | — | 111.7 | |||||||||||||||||||
| Other underwriting expenses | 28.1 | 32.6 | 60.7 | — | 3.5 | — | 64.2 | ||||||||||||||||||||
| Underwriting income (loss) | 27.8 | 9.2 | 37.0 | 33.0 | (33.3 | ) | — | 36.7 | |||||||||||||||||||
| Services revenues | 1.7 | 54.0 | 55.7 | (40.0 | ) | — | (15.7 | ) | — | ||||||||||||||||||
| Services expenses | — | 43.6 | 43.6 | — | — | (43.6 | ) | — | |||||||||||||||||||
| Net services fee income | 1.7 | 10.4 | 12.1 | (40.0 | ) | — | 27.9 | — | |||||||||||||||||||
| Services noncontrolling income | — | (2.8 | ) | (2.8 | ) | — | — | 2.8 | — | ||||||||||||||||||
| Net services income | 1.7 | 7.6 | 9.3 | (40.0 | ) | — | 30.7 | — | |||||||||||||||||||
| Segment income (loss) | 29.5 | 16.8 | 46.3 | (7.0 | ) | (33.3 | ) | 30.7 | 36.7 | ||||||||||||||||||
| Net investment income | 78.4 | — | 78.4 | ||||||||||||||||||||||||
| Net realized and unrealized investment losses | (12.4 | ) | — | (12.4 | ) | ||||||||||||||||||||||
| Net realized and unrealized investment losses from related party investment funds | (1.0 | ) | — | (1.0 | ) | ||||||||||||||||||||||
| Other revenues | 2.1 | 15.7 | 17.8 | ||||||||||||||||||||||||
| Loss on settlement and change in fair value of liability-classified capital instruments | (15.0 | ) | — | (15.0 | ) | ||||||||||||||||||||||
| Net corporate and other expenses | (20.9 | ) | (43.6 | ) | (64.5 | ) | |||||||||||||||||||||
| Intangible asset amortization | (2.9 | ) | — | (2.9 | ) | ||||||||||||||||||||||
| Interest expense | (19.8 | ) | — | (19.8 | ) | ||||||||||||||||||||||
| Foreign exchange losses | (19.2 | ) | — | (19.2 | ) | ||||||||||||||||||||||
| Income (loss) before income tax benefit | $ | 29.5 | $ | 16.8 | 46.3 | (7.0 | ) | (44.0 | ) | 2.8 | (1.9 | ) | |||||||||||||||
| Income tax benefit | — | — | 101.6 | — | 101.6 | ||||||||||||||||||||||
| Net income | 46.3 | (7.0 | ) | 57.6 | 2.8 | 99.7 | |||||||||||||||||||||
| Net (income) loss attributable to noncontrolling interest | — | — | 0.6 | (2.8 | ) | (2.2 | ) | ||||||||||||||||||||
| Net income available to SiriusPoint | $ | 46.3 | $ | (7.0 | ) | $ | 58.2 | $ | — | $ | 97.5 | ||||||||||||||||
| Attritional losses | $ | 143.5 | $ | 222.8 | $ | 366.3 | $ | (1.4 | ) | $ | 11.7 | $ | — | $ | 376.6 | ||||||||||||
| Catastrophe losses | (0.6 | ) | 0.4 | (0.2 | ) | — | 0.1 | — | (0.1 | ) | |||||||||||||||||
| Prior year loss reserve development | (21.1 | ) | (16.6 | ) | (37.7 | ) | — | 26.6 | — | (11.1 | ) | ||||||||||||||||
| Loss and loss adjustment expenses incurred, net | $ | 121.8 | $ | 206.6 | $ | 328.4 | $ | (1.4 | ) | $ | 38.4 | $ | — | $ | 365.4 | ||||||||||||
| Underwriting Ratios: (1) | |||||||||||||||||||||||||||
| Attritional loss ratio | 59.0 | % | 70.7 | % | 65.6 | % | 65.2 | % | |||||||||||||||||||
| Catastrophe loss ratio | (0.2 | )% | 0.1 | % | — | % | — | % | |||||||||||||||||||
| Prior year loss development ratio | (8.7 | )% | (5.3 | )% | (6.8 | )% | (1.9 | )% | |||||||||||||||||||
| Loss ratio | 50.1 | % | 65.5 | % | 58.8 | % | 63.2 | % | |||||||||||||||||||
| Acquisition cost ratio | 26.9 | % | 21.2 | % | 23.7 | % | 19.3 | % | |||||||||||||||||||
| Other underwriting expenses ratio | 11.6 | % | 10.3 | % | 10.9 | % | 11.1 | % | |||||||||||||||||||
| Combined ratio | 88.6 | % | 97.0 | % | 93.4 | % | 93.6 | % | |||||||||||||||||||
| (1) | Underwriting ratios are calculated by dividing the related expense by net premiums earned. |
| (2) | Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards. |
| Twelve months ended December 31, 2024 | |||||||||||||||||||||||||||
| Reinsurance | Insurance & Services |
Core | Eliminations (2) |
Corporate | Segment Measure Reclass |
Total | |||||||||||||||||||||
| Gross premiums written | $ | 1,335.6 | $ | 1,840.8 | $ | 3,176.4 | $ | — | $ | 68.2 | $ | — | $ | 3,244.6 | |||||||||||||
| Net premiums written | 1,104.7 | 1,236.2 | 2,340.9 | — | 11.2 | — | 2,352.1 | ||||||||||||||||||||
| Net premiums earned | 1,045.1 | 1,154.0 | 2,199.1 | — | 144.4 | — | 2,343.5 | ||||||||||||||||||||
| Loss and loss adjustment expenses incurred, net | 554.3 | 714.1 | 1,268.4 | (5.5 | ) | 105.6 | — | 1,368.5 | |||||||||||||||||||
| Acquisition costs, net | 279.9 | 284.7 | 564.6 | (121.4 | ) | 73.7 | — | 516.9 | |||||||||||||||||||
| Other underwriting expenses | 86.1 | 80.0 | 166.1 | — | 15.6 | — | 181.7 | ||||||||||||||||||||
| Underwriting income (loss) | 124.8 | 75.2 | 200.0 | 126.9 | (50.5 | ) | — | 276.4 | |||||||||||||||||||
| Services revenues | — | 222.9 | 222.9 | (132.8 | ) | — | (90.1 | ) | — | ||||||||||||||||||
| Services expenses | — | 176.2 | 176.2 | — | — | (176.2 | ) | — | |||||||||||||||||||
| Net services fee income | — | 46.7 | 46.7 | (132.8 | ) | — | 86.1 | — | |||||||||||||||||||
| Services noncontrolling income | — | (2.1 | ) | (2.1 | ) | — | — | 2.1 | — | ||||||||||||||||||
| Net services income | — | 44.6 | 44.6 | (132.8 | ) | — | 88.2 | — | |||||||||||||||||||
| Segment income (loss) | 124.8 | 119.8 | 244.6 | (5.9 | ) | (50.5 | ) | 88.2 | 276.4 | ||||||||||||||||||
| Net investment income | 303.6 | — | 303.6 | ||||||||||||||||||||||||
| Net realized and unrealized investment losses | (88.7 | ) | — | (88.7 | ) | ||||||||||||||||||||||
| Net realized and unrealized investment gains from related party investment funds | 9.7 | — | 9.7 | ||||||||||||||||||||||||
| Other revenues | 94.1 | 90.1 | 184.2 | ||||||||||||||||||||||||
| Loss on settlement and change in fair value of liability-classified capital instruments | (148.5 | ) | — | (148.5 | ) | ||||||||||||||||||||||
| Net corporate and other expenses | (55.9 | ) | (176.2 | ) | (232.1 | ) | |||||||||||||||||||||
| Intangible asset amortization | (11.9 | ) | — | (11.9 | ) | ||||||||||||||||||||||
| Interest expense | (69.6 | ) | — | (69.6 | ) | ||||||||||||||||||||||
| Foreign exchange gains | 10.0 | — | 10.0 | ||||||||||||||||||||||||
| Income (loss) before income tax expense | $ | 124.8 | $ | 119.8 | 244.6 | (5.9 | ) | (7.7 | ) | 2.1 | 233.1 | ||||||||||||||||
| Income tax expense | — | — | (30.7 | ) | — | (30.7 | ) | ||||||||||||||||||||
| Net income (loss) | 244.6 | (5.9 | ) | (38.4 | ) | 2.1 | 202.4 | ||||||||||||||||||||
| Net income attributable to noncontrolling interest | — | — | (0.4 | ) | (2.1 | ) | (2.5 | ) | |||||||||||||||||||
| Net income (loss) available to SiriusPoint | $ | 244.6 | $ | (5.9 | ) | $ | (38.8 | ) | $ | — | $ | 199.9 | |||||||||||||||
| Attritional losses | $ | 579.8 | $ | 734.5 | $ | 1,314.3 | $ | (5.5 | ) | $ | 112.8 | $ | — | $ | 1,421.6 | ||||||||||||
| Catastrophe losses | 49.5 | 5.3 | 54.8 | — | — | — | 54.8 | ||||||||||||||||||||
| Prior year loss reserve development | (75.0 | ) | (25.7 | ) | (100.7 | ) | — | (7.2 | ) | — | (107.9 | ) | |||||||||||||||
| Loss and loss adjustment expenses incurred, net | $ | 554.3 | $ | 714.1 | $ | 1,268.4 | $ | (5.5 | ) | $ | 105.6 | $ | — | $ | 1,368.5 | ||||||||||||
| Underwriting Ratios: (1) | |||||||||||||||||||||||||||
| Attritional loss ratio | 55.5 | % | 63.6 | % | 59.8 | % | 60.7 | % | |||||||||||||||||||
| Catastrophe loss ratio | 4.7 | % | 0.5 | % | 2.5 | % | 2.3 | % | |||||||||||||||||||
| Prior year loss development ratio | (7.2 | )% | (2.2 | )% | (4.6 | )% | (4.6 | )% | |||||||||||||||||||
| Loss ratio | 53.0 | % | 61.9 | % | 57.7 | % | 58.4 | % | |||||||||||||||||||
| Acquisition cost ratio | 26.8 | % | 24.7 | % | 25.7 | % | 22.1 | % | |||||||||||||||||||
| Other underwriting expenses ratio | 8.2 | % | 6.9 | % | 7.6 | % | 7.8 | % | |||||||||||||||||||
| Combined ratio | 88.0 | % | 93.5 | % | 91.0 | % | 88.3 | % | |||||||||||||||||||
| (1) | Underwriting ratios are calculated by dividing the related expense by net premiums earned. |
| (2) | Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards. |
| Twelve months ended December 31, 2023 | |||||||||||||||||||||||||||
| Reinsurance | Insurance & Services |
Core | Eliminations (2) |
Corporate | Segment Measure Reclass |
Total | |||||||||||||||||||||
| Gross premiums written | $ | 1,271.0 | $ | 2,039.7 | $ | 3,310.7 | $ | — | $ | 116.7 | $ | — | $ | 3,427.4 | |||||||||||||
| Net premiums written | 1,061.0 | 1,282.7 | 2,343.7 | — | 94.2 | — | 2,437.9 | ||||||||||||||||||||
| Net premiums earned | 1,031.4 | 1,249.2 | 2,280.6 | — | 145.6 | — | 2,426.2 | ||||||||||||||||||||
| Loss and loss adjustment expenses incurred, net | 490.3 | 815.4 | 1,305.7 | (5.4 | ) | 81.0 | — | 1,381.3 | |||||||||||||||||||
| Acquisition costs, net | 252.2 | 295.5 | 547.7 | (137.2 | ) | 62.2 | — | 472.7 | |||||||||||||||||||
| Other underwriting expenses | 82.7 | 94.3 | 177.0 | — | 19.3 | — | 196.3 | ||||||||||||||||||||
| Underwriting income (loss) | 206.2 | 44.0 | 250.2 | 142.6 | (16.9 | ) | — | 375.9 | |||||||||||||||||||
| Services revenues | (1.1 | ) | 238.6 | 237.5 | (149.6 | ) | — | (87.9 | ) | — | |||||||||||||||||
| Services expenses | — | 187.8 | 187.8 | — | — | (187.8 | ) | — | |||||||||||||||||||
| Net services fee income (loss) | (1.1 | ) | 50.8 | 49.7 | (149.6 | ) | — | 99.9 | — | ||||||||||||||||||
| Services noncontrolling income | — | (8.5 | ) | (8.5 | ) | — | — | 8.5 | — | ||||||||||||||||||
| Net services income (loss) | (1.1 | ) | 42.3 | 41.2 | (149.6 | ) | — | 108.4 | — | ||||||||||||||||||
| Segment income (loss) | 205.1 | 86.3 | 291.4 | (7.0 | ) | (16.9 | ) | 108.4 | 375.9 | ||||||||||||||||||
| Net investment income | 283.7 | — | 283.7 | ||||||||||||||||||||||||
| Net realized and unrealized investment losses | (10.0 | ) | — | (10.0 | ) | ||||||||||||||||||||||
| Net realized and unrealized investment losses from related party investment funds | (1.0 | ) | — | (1.0 | ) | ||||||||||||||||||||||
| Other revenues | 9.9 | 87.9 | 97.8 | ||||||||||||||||||||||||
| Loss on settlement and change in fair value of liability-classified capital instruments | (59.4 | ) | — | (59.4 | ) | ||||||||||||||||||||||
| Net corporate and other expenses | (70.4 | ) | (187.8 | ) | (258.2 | ) | |||||||||||||||||||||
| Intangible asset amortization | (11.1 | ) | — | (11.1 | ) | ||||||||||||||||||||||
| Interest expense | (64.1 | ) | — | (64.1 | ) | ||||||||||||||||||||||
| Foreign exchange losses | (34.9 | ) | — | (34.9 | ) | ||||||||||||||||||||||
| Income before income tax benefit | $ | 205.1 | $ | 86.3 | 291.4 | (7.0 | ) | 25.8 | 8.5 | 318.7 | |||||||||||||||||
| Income tax benefit | — | — | 45.0 | — | 45.0 | ||||||||||||||||||||||
| Net income | 291.4 | (7.0 | ) | 70.8 | 8.5 | 363.7 | |||||||||||||||||||||
| Net income attributable to noncontrolling interest | — | — | (0.4 | ) | (8.5 | ) | (8.9 | ) | |||||||||||||||||||
| Net income available to SiriusPoint | $ | 291.4 | $ | (7.0 | ) | $ | 70.4 | $ | — | $ | 354.8 | ||||||||||||||||
| Attritional losses | $ | 618.9 | $ | 840.7 | $ | 1,459.6 | $ | (5.4 | ) | $ | 76.5 | $ | — | $ | 1,530.7 | ||||||||||||
| Catastrophe losses | 12.2 | 1.3 | 13.5 | — | 11.3 | — | 24.8 | ||||||||||||||||||||
| Prior year loss reserve development | (140.8 | ) | (26.6 | ) | (167.4 | ) | — | (6.8 | ) | — | (174.2 | ) | |||||||||||||||
| Loss and loss adjustment expenses incurred, net | $ | 490.3 | $ | 815.4 | $ | 1,305.7 | $ | (5.4 | ) | $ | 81.0 | $ | — | $ | 1,381.3 | ||||||||||||
| Underwriting Ratios: (1) | |||||||||||||||||||||||||||
| Attritional loss ratio | 60.0 | % | 67.3 | % | 64.0 | % | 63.1 | % | |||||||||||||||||||
| Catastrophe loss ratio | 1.2 | % | 0.1 | % | 0.6 | % | 1.0 | % | |||||||||||||||||||
| Prior year loss development ratio | (13.7 | )% | (2.1 | )% | (7.3 | )% | (7.2 | )% | |||||||||||||||||||
| Loss ratio | 47.5 | % | 65.3 | % | 57.3 | % | 56.9 | % | |||||||||||||||||||
| Acquisition cost ratio | 24.5 | % | 23.7 | % | 24.0 | % | 19.5 | % | |||||||||||||||||||
| Other underwriting expenses ratio | 8.0 | % | 7.5 | % | 7.8 | % | 8.1 | % | |||||||||||||||||||
| Combined ratio | 80.0 | % | 96.5 | % | 89.1 | % | 84.5 | % | |||||||||||||||||||
| (1) | Underwriting ratios are calculated by dividing the related expense by net premiums earned. |
| (2) | Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards. |
SIRIUSPOINT LTD.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS & OTHER FINANCIAL MEASURES
Non-GAAP Financial Measures
Core Results
Collectively, the sum of the Company’s two segments, Reinsurance and Insurance & Services, constitute “Core” results. Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. We believe it is useful to review Core results as it better reflects how management views the business and reflects our decision to exit the runoff business. The sum of Core results and Corporate results are equal to the consolidated results of operations.
Core underwriting income – calculated by subtracting loss and loss adjustment expenses incurred, net, acquisition costs, net, and other underwriting expenses from net premiums earned.
Core net services income – consists of services revenues which include commissions, brokerage and fee income related to consolidated MGAs, and other revenues, and services expenses which include direct expenses related to consolidated MGAs, services noncontrolling income which represent minority ownership interests in consolidated MGAs. Net services income is a key indicator of the profitability of the Company’s services provided.
Core income – consists of two components, core underwriting income and core net services income. Core income is a key measure of our segment performance.
Core combined ratio – calculated by dividing the sum of Core loss and loss adjustment expenses incurred, net, acquisition costs, net and other underwriting expenses by Core net premiums earned. Accident year loss ratio and accident year combined ratio are calculated by excluding prior year loss reserve development to present the impact of current accident year net loss and loss adjustment expenses on the Core loss ratio and Core combined ratio, respectively. Attritional loss ratio excludes catastrophe losses from the accident year loss ratio as they are not predictable as to timing and amount. These ratios are useful indicators of our underwriting profitability.
Book Value Per Diluted Common Share Metrics
Book value per diluted common share excluding AOCI and tangible book value per diluted common share, as presented, are non-GAAP financial measures and the most directly comparable U.S. GAAP measure is book value per common share. Management believes it is useful to exclude AOCI because it may fluctuate significantly between periods based on movements in interest and currency rates. Tangible book value per diluted common share excludes intangible assets. Management believes that effects of intangible assets are not indicative of underlying underwriting results or trends and make book value comparisons to less acquisitive peer companies less meaningful. Tangible book value per diluted common share is useful because it provides a more accurate measure of the realizable value of shareholder returns, excluding intangible assets.
The following table sets forth the computation of book value per common share, book value per diluted common share and tangible book value per diluted common share as of December 31, 2024 and December 31, 2023:
| December 31, 2024 |
December 31, 2023 |
||||||
| ($ in millions, except share and per share amounts) | |||||||
| Common shareholders’ equity attributable to SiriusPoint common shareholders | $ | 1,737.4 | $ | 2,313.9 | |||
| Accumulated other comprehensive income (loss), net of tax | (4.1 | ) | 3.1 | ||||
| Common shareholders’ equity attributable to SiriusPoint common shareholders ex. AOCI | 1,741.5 | 2,310.8 | |||||
| Intangible assets | 140.8 | 152.7 | |||||
| Tangible common shareholders’ equity attributable to SiriusPoint common shareholders | $ | 1,596.6 | $ | 2,161.2 | |||
| Common shares outstanding | 116,429,057 | 168,120,022 | |||||
| Effect of dilutive stock options, restricted share units and warrants | 2,559,359 | 5,193,920 | |||||
| Book value per diluted common share denominator | 118,988,416 | 173,313,942 | |||||
| Book value per common share | $ | 14.92 | $ | 13.76 | |||
| Book value per diluted common share | $ | 14.60 | $ | 13.35 | |||
| Book value per diluted common share ex. AOCI | $ | 14.64 | $ | 13.33 | |||
| Tangible book value per diluted common share | $ | 13.42 | $ | 12.47 | |||
Underlying Net Income
Underlying net income is a non-GAAP financial measure and the most directly comparable U.S. GAAP measure is net income. Underlying net income excludes items which we believe are not indicative of the operations of our underlying businesses, including realized and unrealized gains (losses) on strategic and other investments and liability-classified capital instruments, income (expense) related to loss portfolio transfers, deferred tax assets attributable to the enactment of the Bermuda corporate income tax, development on COVID-19 reserves resulting from the COVID-19 reserve study performed concurrently with the settlement of the Series A Preference shares in the third quarter of 2024, and foreign exchange gains (losses). We believe it is useful to review underlying net income as it better reflects how we view the business, as well as provides investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics. Underlying return on average common shareholders’ equity is calculated by dividing underlying net income available to SiriusPoint common shareholders for the period by the average common shareholders’ equity, excluding AOCI. Management believes it is useful to exclude AOCI because it may fluctuate significantly between periods based on movements in interest and currency rates.
The following table sets forth the computation of underlying net income for the three and twelve months ended December 31, 2024 and 2023:
| Three months ended | Twelve months ended | ||||||||||||||
| December 31, 2024 |
December 31, 2023 |
December 31, 2024 |
December 31, 2023 |
||||||||||||
| Net income (loss) available to SiriusPoint common shareholders | $ | (21.3 | ) | $ | 93.5 | $ | 183.9 | $ | 338.8 | ||||||
| Non-recurring adjustments: | |||||||||||||||
| Gains on sale or deconsolidation of consolidated MGAs | — | — | (96.0 | ) | — | ||||||||||
| Losses on strategic and other investments | 34.3 | 15.4 | 90.5 | 40.2 | |||||||||||
| MGA & Strategic Investment Rationalization | 34.3 | 15.4 | (5.5 | ) | 40.2 | ||||||||||
| Losses on settlement and change in fair value of liability-classified capital instruments (“CMIG Merger Instruments”) | 25.9 | 15.0 | 148.5 | 59.4 | |||||||||||
| COVID-19 favorable reserve development (1) | — | — | (19.9 | ) | — | ||||||||||
| CMIG Instruments & Transactions | 25.9 | 15.0 | 128.6 | 59.4 | |||||||||||
| (Income) expense related to loss portfolio transfers | 28.9 | 2.1 | 44.6 | (101.6 | ) | ||||||||||
| Bermuda corporate income tax enactment | — | (100.8 | ) | — | (100.8 | ) | |||||||||
| Foreign exchange (gains) losses | (12.9 | ) | 19.2 | (10.0 | ) | 34.9 | |||||||||
| Income tax expense on adjustments (2) | (11.4 | ) | (7.8 | ) | (38.1 | ) | (4.9 | ) | |||||||
| Underlying net income available to SiriusPoint common shareholders | $ | 43.5 | $ | 36.6 | $ | 303.5 | $ | 266.0 | |||||||
| Return on average common shareholders’ equity attributable to SiriusPoint common shareholders | (4.0 | )% | 17.1 | % | 9.1 | % | 16.2 | % | |||||||
| Common shareholders’ equity attributable to SiriusPoint common shareholders – beginning of period | $ | 2,494.9 | $ | 2,050.0 | $ | 2,313.9 | $ | 1,874.7 | |||||||
| Accumulated other comprehensive income (loss), net of tax | 81.5 | (135.4 | ) | 3.1 | (45.0 | ) | |||||||||
| Common shareholders’ equity attributable to SiriusPoint common shareholders ex. AOCI – beginning of period | 2,413.4 | 2,185.4 | 2,310.8 | 1,919.7 | |||||||||||
| Common shareholders’ equity attributable to SiriusPoint common shareholders – end of period | 1,737.4 | 2,313.9 | 1,737.4 | 2,313.9 | |||||||||||
| Impact of adjustments from above | 64.8 | (56.9 | ) | 119.6 | (72.8 | ) | |||||||||
| Accumulated other comprehensive income (loss), net of tax | (4.1 | ) | 3.1 | (4.1 | ) | 3.1 | |||||||||
| Common shareholders’ equity attributable to SiriusPoint common shareholders ex. AOCI – end of period | 1,806.3 | 2,253.9 | 1,861.1 | 2,238.0 | |||||||||||
| Average common shareholders’ equity attributable to SiriusPoint common shareholders ex. AOCI | $ | 2,109.9 | $ | 2,219.7 | $ | 2,086.0 | $ | 2,078.9 | |||||||
| Underlying return on average common shareholders’ equity attributable to SiriusPoint common shareholders ex. AOCI | 8.2 | % | 6.6 | % | 14.5 | % | 12.8 | % | |||||||
| (1) | This development, which is primarily related to business written by legacy Third Point Reinsurance Ltd., is the result of the COVID-19 reserve study performed concurrently with the settlement of the Series A Preference shares in the third quarter of 2024. |
| (2) | An effective tax rate of 15% is applied to the adjustments to calculate the income tax expense, where applicable. |
Other Financial Measures
Annualized Return on Average Common Shareholders’ Equity Attributable to SiriusPoint Common Shareholders
Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders is calculated by dividing annualized net income (loss) available to SiriusPoint common shareholders for the period by the average common shareholders’ equity determined using the common shareholders’ equity balances at the beginning and end of the period.
Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders for the three and twelve months ended December 31, 2024 and 2023 was calculated as follows:
| Three months ended | Twelve months ended | ||||||||||||||
| December 31, 2024 |
December 31, 2023 |
December 31, 2024 |
December 31, 2023 |
||||||||||||
| ($ in millions) | |||||||||||||||
| Net income (loss) available to SiriusPoint common shareholders | $ | (21.3 | ) | $ | 93.5 | $ | 183.9 | $ | 338.8 | ||||||
| Common shareholders’ equity attributable to SiriusPoint common shareholders – beginning of period | 2,494.9 | 2,050.0 | 2,313.9 | 1,874.7 | |||||||||||
| Common shareholders’ equity attributable to SiriusPoint common shareholders – end of period | 1,737.4 | 2,313.9 | 1,737.4 | 2,313.9 | |||||||||||
| Average common shareholders’ equity attributable to SiriusPoint common shareholders | $ | 2,116.2 | $ | 2,182.0 | $ | 2,025.7 | $ | 2,094.3 | |||||||
| Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders | (4.0 | )% | 17.1 | % | 9.1 | % | 16.2 | % | |||||||
