Allegro Confirms 2024 Outlook as Q1 Earnings Climb, Focus Shifts to Competing with Temu

/in /tarafından

Allegro, Poland’s top e-commerce platform, reported a 4.9% rise in Q1 adjusted core earnings in its domestic market and confirmed its full-year forecast, even as competition from platforms like Temu intensifies.

Incoming CEO Marcin Kuśmierz said the company continues to see strong buyer engagement both domestically and abroad:

“Not only is the number of active buyers rising in Poland and internationally, but they also continue to spend more with us on average.”

Q1 Results Overview

  • Adjusted EBITDA (Poland): 859.4 million zlotys ($229.6 million)
    (slightly below analyst expectations of 875 million zlotys)

  • Gross Merchandise Value (GMV):

    • Poland: Up 8.9% to 14.78 billion zlotys

    • International Markets: Up 82%

  • Active Buyers (Group-wide): 21 million (↑5.4% YoY)

    • Of which 6 million are international

Competitive Strategy and Platform Evolution

Despite “not the best” trading conditions in Q1, Finance Chief Jon Eastick noted that the outlook for Q2 is firmer, with the company remaining optimistic for the latter half of 2024.

To differentiate from Asian e-commerce players like Temu, Allegro has removed listings with long shipping times, particularly those from East Asia. This has helped:

  • Increase shopping frequency

  • Boost the number of local merchants on its international platforms (↑56% YoY)

“Removing most of the long delivery time Asian selection helped Allegro distinguish itself,” Eastick said.

Allegro also continues to invest in logistics infrastructure to lower costs and improve service, expanding its network of:

  • In-house parcel lockers

  • Partner-managed delivery points

The share of delivery volumes managed by Allegro rose to 29% in Q1, up from 24% in Q4 2023.

Market Reaction

Despite the overall positive momentum, Allegro shares slipped ~2% in early trading. Analysts at JPMorgan called the result “moderately negative” due to:

  • Slightly softer Polish profitability

  • No upside surprises in GMV growth

Still, Allegro remains Poland’s dominant player and is steadily building out its international presence in Czech Republic, Slovakia, and Hungary, aiming to consolidate its regional leadership.

Grupo Werthein Launches $40 Million Generative AI Company ‘Illumia’ to Enhance Humanized Customer Interaction

/in /tarafından

Grupo Werthein, the Argentina-based investment conglomerate, has launched a new generative AI company named Illumia, backed by an initial $40 million investment, the company announced on Wednesday. Illumia will focus on humanized AI solutions for sales, customer service, and business communication, blending multiple AI platforms to simulate human-like conversation.

“We aim to use generative artificial intelligence with digital assistants that can converse the same way humans can,” said Daniel Figueirido, CEO of Illumia, in a statement to Reuters.

The company’s AI service leverages existing AI tools and proprietary technologies to deliver solutions aimed at personalizing interactions between companies and their customers. It has already begun offering services to Werthein-controlled firms and third-party clients in Latin America.

Why It Matters

The investment signals a strategic push by Latin American firms to lead in AI personalization and customer engagement technologies, an area increasingly seen as critical for competitiveness in sectors such as telecom, media, and e-commerce.

“The key to the kingdom with this kind of investment is how do I combine each of these different platforms and technologies,” Figueirido said.

Illumia’s development comes at a time of both high enthusiasm and caution toward generative AI in the region. A recent Reuters study found that while 56% of Latin American respondents expressed excitement about AI, 50% voiced concerns over privacy and data confidentiality.

What’s Next

Figueirido envisions expanding Illumia’s reach beyond Latin America, scaling services across industries and geographies. While early clients have included firms within the Werthein portfolio — which includes DirecTV Latin America and Sky Brazil — the company is now positioning itself for regional and international growth.

Grupo Werthein’s move into AI reflects a broader trend among legacy conglomerates investing in next-gen technologies, with Illumia poised to play a leading role in AI-driven customer engagement and digital transformation in Latin America and beyond.

RBC Launches New AI and Innovation Team to Drive Capital Markets Growth

/in /tarafından

Royal Bank of Canada (RBC) has established a new Artificial Intelligence and Digital Innovation team within its capital markets division, as the country’s largest lender ramps up efforts to use AI for enhancing trading, research, and operational efficiency.

The newly formed team will operate out of New York, Toronto, and London, and report to Lindsay Patrick, who has been appointed Chief Strategy and Innovation Officer. The move marks a strategic shift in how RBC intends to position itself in the global financial services landscape as AI adoption accelerates across the banking sector.

Bobby Grubert, who previously worked on RBC’s flagship generative AI platform Aiden and the bank’s data-driven research tool RBC Elements, will lead the unit as Head of AI and Digital Innovation, reporting directly to Patrick.

Strategic AI Push

RBC has been steadily expanding its AI capabilities. In March, the bank revealed it expects to earn up to C$1 billion ($722 million) from AI investments, underscoring the technology’s importance in the bank’s future growth strategy.

“We are betting on AI to speed up training, streamline processes, and improve overall efficiency,” said CEO Dave McKay, who also noted positive feedback from technology partners, including Nvidia CEO Jensen Huang.

Within capital markets, RBC has already been leveraging Aiden — developed in collaboration with research institute Borealis AI — to automate electronic trading, improve operational workflows, and enhance data analytics.

Derek Neldner, Head of RBC Capital Markets, said Aiden is being used to scale front-to-back automation, improve electronic execution, and deliver data-powered research and insights.

Industry-Wide AI Race

RBC is among several major banks globally accelerating their investment in AI to:

  • Automate document processing and customer interactions,

  • Enhance fraud detection and compliance,

  • Improve research delivery and trade execution.

Rival Bank of Montreal (BMO) has also appointed a Chief AI and Data Officer, and other Canadian and global banks are rapidly building out internal AI capabilities.

By formalizing its AI strategy within a dedicated team, RBC is aiming to consolidate its early leads and position itself at the forefront of AI-driven capital markets innovation.