Just Eat’s profits plunge 98% due to ‘planned investments’
Online food delivery firm Just Eat has reported a massive 98% fall in its half year results as the firm invests heavily in the business.
Most of the decline it said was down to a mix of rolling out its own delivery services, investments in its Brazilian joint venture, iFood, and its recently announced £9bn planned merger with Dutch firm Takeaway.com.
Just Eat said it invested £73.2m in cash into iFood, which it currently holds a 33% stake in.
However, orders at the London headquartered firm were up 21% and revenue for the period also jumped 30% to £464.5m.
The company also said it had updated its popular app with personalisation and was making ongoing Customer Relationship Management (CRM) enhancements.
Working at pace
"We've been working at pace and made good progress in the first half of the year to become the preferred food delivery app for our customers, with a broader choice of restaurants, a better user experience and a more personalised and impactful approach to communication”, said Peter Duffy, Interim Chief Executive Officer.
“Performance in our UK business strengthened in Q2, our Canadian and European businesses are performing well and Australia has returned to top line growth with our delivery operations achieving gross profitability.
“These are strong foundations for Just Eat to build on, as the business continues to drive forward."
The firm also said it was maintaining its full year guidance of achieving full year earnings topping the £1bn mark.
Investors appeared to be satisfied with the half, as the shares were trading 2% higher at £7.56.
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