Klarna boosts revenue to $1m per employee using AI

Buy-now-pay-later firm Klarna reported AI-driven sales growth for the second quarter, enabling the company to generate revenues of $1 million per employee.

The Swedish company said it had 20% like-for-like sales growth in the second quarter, with total revenues coming in at $823 million for the period.

The firm also saw adjusted operating profits of $29 million, up significantly from the first quarter’s $3 million.

“AI adoption continues to deliver significant, tangible results. As a result of this strategy, average revenue per employee reached $1.0m, up 46% [year on year in the second quarter],” the company said in its quarterly report.

Klarna has aggressively leveraged AI to boost productivity performance. It has shed two in five jobs over the past two years as a result. “This shift reflects the growing impact of AI and automation in eliminating manual, time-consuming work across Klarna,” the company had said in its first-quarter results.

— Ganesh Rao

Industrial output in the euro zone saw a month-on-month decline of 1.3% in June, preliminary data from statistics agency Eurostat showed on Thursday.

Economists polled by Reuters had been expecting a decline of 1%.

The decline, which marked a sharp downturn from the 1.1% monthly uptick in output seen in May, was driven by a slowdown in multiple countries, including Germany, and a fall in consumer goods production.

On a monthly basis, German industrial production was down by 2.3%, Eurostat’s data showed.

“Looking ahead, we think industrial production and overall economic activity will grow at only a slow pace in the second half of the year and beyond,” Andrew Kenningham, chief Europe economist at Capital Economics, said in a note following the data release.

“There should be some boost from looser fiscal policy in Germany, but it will not be huge and nor is it likely to last very long.”

— Chloe Taylor

We’re half an hour into Thursday’s session, and the pan-European Stoxx 600 has so far gained 0.2%, with most sectors in positive territory.

The German DAX and France’s CAC 40 are both around 0.3% higher, while London’s FTSE 100 is down by 0.2%.

— Chloe Taylor

Danish brewer Carlsberg on Thursday reported slightly weaker-than-expected second-quarter sales on weaker volumes, but nevertheless raised its 2025 guidance towards the upper end.

The world’s third-largest brewer posted revenues of 25.7 billion Danish kroner ($4 billion) in the three months to June 30, just shy of the 26.4 forecast by analysts in an LSEG poll.

Reported operating profit in the first half of the year meanwhile came in at 7.23 billion Danish kroner, also below the 7.35 billion Danish kroner forecast. Organic volume growth over the period dipped 1.7%, including from the company’s recently exited San Miguel brand.

CEO Jacob Aarup-Andersen cited a “spending pause” among consumers that he said was weighing on volume growth. “The volumes do not flow in the way they did a couple of years ago,” he told CNBC’s “Squawk Box Europe.”

The company nevertheless raised its full-year profit guidance to growth of between 3% to 5% — up from 1% to 5% previously — and flagged strength in its premium and alcohol-free brews.

— Karen Gilchrist

Month on month, the U.K. economy grew 0.4% in June after a 0.1% contraction in May, today’s preliminary data showed.

George Brown, a senior economist at Schroders, said the slowdown reflected a drop in manufacturing following tariff frontloading in the first quarter.

“This drag should ease in the third quarter, even against a tougher global trade backdrop,” he said.

“Still, hopes of a sharp rebound are likely to be dashed. The labour market has softened, and capacity constraints mean even tepid growth is generating inflation pressures.”

— Chloe Taylor, Holly Ellyatt

The U.K. economy expanded by a better-than-expected 0.3% in the second quarter, according to preliminary estimates from the U.K.’s Office for National Statistics out on Thursday.

Economists polled by Reuters had expected the country’s gross domestic product (GDP) to expand by a tepid 0.1% over the period, up from bumper growth of 0.7% in the first quarter.

Month-on-month, the economy grew 0.4% in June after a 0.1% contraction in May, failing to shake off the impact of U.S. tariffs and business uncertainty.

— Holly Ellyatt

Russian President Vladimir Putin’s standing in the West may be pretty low, but he’s a skilled and seasoned statesman who shouldn’t be underestimated, analysts say — and he’s likely to be looking to outmaneuver his less experienced U.S. counterpart when the leaders meet in Alaska on Friday.

Putin and U.S. President Donald Trump are meeting to try to negotiate an end to the war in Ukraine, but close followers of Moscow’s leadership are skeptical that any lasting resolution will be reached at the summit.

Read more from CNBC’s Holly Ellyatt here.

Good morning from London, and welcome to CNBC’s live blog covering all the action and business news in European financial markets on Thursday.

Futures data from IG suggests a generally positive open for European indexes, with London’s FTSE 100 seen opening 0.15% higher, France’s CAC 40 and Germany’s DAX are seen opening around the flatline, and Italy’s FTSE MIB slightly higher.

The pullback in sentiment among European bourses comes ahead of the latest indicator of the state of health of major regional economies, with gross domestic product readings from the U.K. and European Union on Thursday.

European markets had ended the day higher on Wednesday, with the pan-European Stoxx 600 index rising 0.55% after the S&P 500 and Nasdaq Composite rallied to new records yesterday. Investors are gearing up for more inflation data to assess the state of the U.S. economy.

The producer price index, due Thursday, will be significant factors in the direction interest rates take at the Federal Reserve’s next meeting in September.

— Holly Ellyatt

Earnings are set to come from Adyen, Swiss Re, Hapag-Lloyd, RWE, Talanx, CVC Capital Partners, Aviva, Antofagasta and Carlsberg on Thursday.

On the data front, U.K. second-quarter preliminary gross domestic product figures are released at 7 a.m. London time, followed by the latest French inflation figures shortly after and the EU employment and GDP data at 10 a.m. London time.

— Holly Ellyatt