Tuesday, 6 March 2018

Fast-expanding takeaway delivery platform Just Eat reported a £76m loss for 2017



Shares in Just Eat have plunged after it slumped into the red thanks to a £180m hit from its Australia and New Zealand operations and warned of higher investment across the group.
 
The fast-expanding takeaway delivery platform reported a £76m loss for 2017, compared to a £91m profit the year before.
 
 
It also said it would ramp up spending in 2018 in the face of intensifying competition, resulting in an earnings outlook lower than markets have been forecasting.


Shares opened 14% lower on Tuesday. They partially recovered later but were still 9% down in midday trading.


Chief executive Peter Plumb hailed the wider success of the group's performance, saying it enjoyed a record year with 21.5 million customers ordering 172 million takeaways around the world.


In the UK, it saw its highest single day of orders in December on the night of the X Factor final, when more than 500,000 were processed.


Group revenues rose 45% to £546m, while Just Eat said that its underlying measure of earnings was up 42% to £164m.


But it added that while it had enjoyed a strong performance in 2017, the market was evolving with competition "intensifying in certain markets", including Australia and New Zealand, and customers expecting an "ever-better experience".




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