Just Eat revenues soar amidst merger pressure

UK revenue was up 27% despite the impact of hot weather.

Food delivery platform Just Eat posted revenues of £779.5 million in the 12 months ended 31 December 2018, up by 43% from the £546.3 million recorded the previous year.

Underlying EBITDA showed an increase of 6%, with a recorded £173.9 million from last year’s £163.5 million. Order growth for the platform jumped 28%, with an estimated total of 26 million active customers.

“We are creating a leading hybrid offering founded on our unrivalled marketplace, combined with the targeted roll-out of delivery. This gives our growing customer base access to the greatest choice of restaurants and drives even more orders to our Restaurant Partners, ultimately strengthening the network effects of our business," Interim Chief Executive Officer Peter Duffy said.

“We have a clear plan for the year ahead as our highly experienced team works hard to accelerate the execution of our strategy and we remain focused on long-term returns for

In 2019, Just Eat targets full year 2019 revenues in the range of £1.0 billion to £1.1 billion and uEBITDA in the range of £185 million to £205 million (both excluding Brazil and Mexico), as the company rolls out initiatives to increase its customer base in key markets.

Investment firm and Just Eat shareholder Cat Rock Capital, which has urged the food delivery platform to pursue merger talks, said that the results "underscore the need for a world-class CEO with online food delivery experience" whilst welcoming Duffy's decision to not be part of the CEO search process.

"Notwithstanding the poor UK performance, Just Eat’s 43% overall revenue growth in 2018 is a testament to the high quality and significant growth opportunity of the business," the firm said.

"We respect and appreciate Peter Duffy’s decision to withdraw from the CEO search process, allowing the Board to secure a leader with the appropriate online food delivery experience. We believe that a merger with a well-run industry peer is a very attractive avenue for securing world-class leadership, delivery expertise, and a premium."