Just Eat upgrades its guidance to full year 2016 revenues

The company reported that total orders in the First Quarter ended 31 March 2016 were 31.5 million, up 57% year-on-year, up 41% on a like-for-like basis.

Given the increase in the UK commission rate going into the second quarter, the company increased its expectations for full year revenues to £358 million, at current exchange rates, up from £350 million given at the time of the Full Year 2015 results.

Supported by this improved revenue performance, whilst reinvesting a proportion of the additional UK revenue for growth, Underlying EBITDA for the full year is expected to be within the range of £102-104 million, up from the previous guidance of £98-100 million.

According to the company, all segments continued to deliver strong growth, with orders in the UK up 40% year-on-year. A one percentage point increase in the commission rate for existing UK restaurants came into effect in early April, alongside a change from twice monthly to weekly payments, which will significantly improve our partners’ cash flows. The initial response to these changes has been positive.

Just Eat reported that the integration of the businesses acquired in Italy, Brazil and Mexico in February is going well, and following competition authority approval, the associated acquisition of La Nevera Roja in Spain closed on 4 April. Order growth in all of these markets has remained strong.

David Buttress, Chief Executive Officer, said, “We have had an excellent start to 2016 and I am delighted with the Company’s performance and the momentum in the business. The team has continued to work hard to deliver increased value and ever more orders to our restaurant partners. Our focused strategy and improvements to both our consumer offering and restaurant support are working and we are well positioned to continue benefitting from channel shift in the category. With this in mind, we are pleased to increase our guidance to full year 2016 revenues to £358 million and Underlying EBITDA in the range of £102-104 million.”

Also Read

Pizza chains losing ground to restaurant rivals: report

Shift in fast food menus sees focus on £5-£10 offerings

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit