LONDON (Alliance News) - Just Eat PLC on Tuesday increased its revenue guidance for 2018 following a strong half-year performance which saw revenue and orders rise.
The FTSE 100-listed online takeaway platform said it now expects full-year revenue of around GBP740 million and GBP770 million, up from previous expectations of between GBP660 million and GBP700 million.
Adjusted earnings before interest, taxes, depreciation and amortisation guidance remained unchanged between GBP165 million and GBP185 million.
For the six months to June 30, the group posted revenue up 45% to GBP358.4 million from GBP246.6 million year-on-year.
Pretax profit was lower by 3% to GBP48.1 million from GBP49.5 million due to costs associated with the acquisition of rival online food delivery company Hungryhouse in the UK.
"These results reflect increased investment, specifically in key areas such as marketing, technology and product development. These improvements are benefitting both sides of our marketplace and providing a solid platform for the launch of delivery services," the company said.
Customers orders increased 30% to 104.4 million from 80.4 million in the comparative year ago period, as more people ordered via the Just Eat app. Orders via mobile app accounted for 54% of the total orders compared to 46% last year.
By geography, Canada revenue more than doubled after the merger with SkipTheDishes, while UK revenue increased 30%.
International revenue increased 36% with strong growth in Italy, Spain and Mexico, with Australia as the only location experiencing a revenue fall. Sales dropped by 8% as the country continues the transition to hybrid delivery, Just Eat said.
Just Eat said in the six-month period it added a net 11,400 restaurants and 5.6 million new customers.
"The Just Eat Group served 24 million customers with 104 million takeaways through the group's platforms around the world. Our increased investments in technology, brand and delivery are on track to make our service even easier to use, whilst expanding our customer's choice," Chief Executive Officer Peter Plumb said.
Just Eat paid no interim dividend - unchanged from last year - as it raised its investment plan for long-term growth to a range of GBP55 million to GBP60 million from GBP50 million.
Just Eat shares were trading down 2.7% at 824.00 pence each.
