Just Eat revenues jump as orders hit 39 million in first quarter

Just Eat

The figures

Revenues on a like-for-like basis were up 40 per cent in the three months to 31 March, after adjustment to be currency neutral, City AM reports.

Total orders across the whole business were up 25 per cent to 39 million, with overseas sales boosted by the acquisition of similar service SkipTheDishes in Canada.

There were 24 million orders in the UK, marking a year-on-year increase of 17 per cent. The company said this goes up to 19 per cent when taking this year’s late Easter and the additional leap year day in 2016 into account.

Why it’s interesting

Revenues have grown faster than orders because Just Eat increased the commission paid by restaurants for orders last year.

Buying another service, SkipTheDishes, has helped non-UK orders rise 38 per cent to 15 million. Just Eat has another acquisition in the works, as its deal to take over Hungry House is still under consideration by the Competition and Markets Authority, with a decision due next week.

What Just Eat said

Paul Harrison, the company’s interim CEO, said the results put Just Eat on track to make revenues of £480-495m and underlying pre-tax profit of £157-163m this year.

He commented: “Just Eat has enjoyed another period of strong growth. In addition to structural market growth, we are also seeing the benefits of ongoing investments in technology and marketing.”