(Reuters) – Uber announced on Wednesday a share buyback plan for an amount of up to $7 billion (6.54 billion euros), the first in the group’s history, encouraged by the takeover of its carpooling activities and the continued demand for meal delivery.
Uber shares rose nearly 6% to $72.95 in pre-market trading on Wall Street.
“Today’s approval for our first-ever share buyback program is a vote of confidence in the company’s strong financial momentum,” said Chief Financial Officer Prashanth Mahendra-Rajah.
Uber announced last week its first net annual profit since the group’s IPO in 2019.
Over the next three years, the company expects gross bookings growth in the range of 10% and adjusted core profit growth in the range of 30% to 40%.
Free cash flow as a percentage of adjusted earnings before interest, taxes, depreciation and amortization is expected to be 90% or greater each year.
(Reporting by Yuvraj Malik and Samrhitha Arunasalam in Bangalore, writing by Augustin Turpin, editing by Kate Entringer)
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