Just Eat Profits Surge As More Join, Expects Strong Growth To Continue

LONDON (Alliance News) - Online takeaway platform Just Eat PLC Tuesday reported strong growth in profit and revenue in 2014, as order volumes grew by half on the back of increased numbers of active users, particularly those using mobile devices to do their ordering, and it said the strong trading momentum has continued into 2015.

The company, which listed last April, reported a pretax profit of GBP57.4 million in 2014, up from GBP10.2 million in 2013, as it booked GBP37.8 million in gains for changes in control at its French and Brazilian operations.

Its closely-watched earnings before interest, tax, depreciation and amortisation, excluding items including exceptional gains and foreign exchange gains and losses, rose to GBP32.6 million, from GBP14.1 million, as revenue rose to GBP157.0 million from GBP96.8 million. The revenue increase was driven by a 52% increase in orders to GBP61. 2million and a 37% increase in active users to 8.1 million.

"As well as sharply higher order volumes in 2014, which increased 52% year-on-year, we have seen a continuing shift to mobile. Through our mobile-led strategy this channel now provides over 60% of orders for the UK. We also enhanced our relationship with our restaurant partners, who are embracing the improved tools we offer them," Chairman John Hughes said in a statement.

Chief Executive David Buttress said the strong trading momentum has continued into 2015, and it is expecting revenue for the year as a whole to marginally exceed GBP200 million, taking account of the investments into technology, marketing and staff it intends to make.

"Looking forward, we must capitalise on our clear leadership positions both in established markets such as the UK and in large, developing markets such as France, Brazil and Spain, markets of significant scale but in which online ordering is still at an early stage. Building leadership positions in those markets will create great long-term value for shareholders," the CEO said.

By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1

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