Just Eat sees Q3 revenue leap 25%

Online food delivery, group, Just Eat plc has today reported its financial results over the three (Q3) and nine months (year-to-date) to 30 September 2019.

Revenue growth stood at 25%, £248m, and group orders were up 16% to 62 million. The year-to-date figure was £717.8m, up 28%.

For Q3, UK orders increased by 8% to 33 million, driven by rapid growth in its delivery proposition, which is now present in all key zones, offset by slower growth in its marketplace business, on the back of a broadly softer consumer spending backdrop and changing consumer preferences.

European order growth was good, with ongoing strong performance seen in Italy and Switzerland, and new brand partnerships forged in Spain.

In Canada, SkipTheDishes continued its very strong double-digit growth, and the Australian business remained on its recovery path, with improving momentum during the period resulting in double digit-order growth.

iFood continued its exceptional growth during the quarter with over 21 million orders made in September.

Peter Duffy, Interim CEO, (picture), commented, “We are seeing strong growth in many of our markets, including Canada, Europe and pleasingly Australia, where we are starting to reap the benefits of our turnaround plan.

'Our UK marketplace business is a strong and clear leader; however, we are seeing a structural shift, with increasing demand on our platform from customers for broader cuisine choice and more meal occasions, led by quick service restaurant chains. The strong growth in our UK delivery business shows that we can successfully meet these needs.

'The winning platform for food delivery will offer customers the broadest range, underlining the importance of our move to the hybrid business model and continuing investments in key markets.

'We remain on track to deliver our full year 2019 revenue and uEBITDA guidance.”

The Board remains confident in the current performance of the group and is reconfirming its guidance for full year 2019 revenue in the range of £1bn to £1.1bn and uEBITDA in the range of £185m to £205m (both excluding Brazil and Mexico). As noted at the time of its H1 results, uEBITDA includes the negative impact of recent acquisitions, which is still expected to be £10-12m.

The Board also continues to expect Just Eat's share of its Latin American operations (being Brazil and Mexico together) to report an uEBITDA loss in the range of £80m to £100m for full year 2019.