Just Eat profits plunge 98 per cent on delivery investment
Just Eat saw profits plummet in the first half of this year due to investment in its delivery platform, however revenue was up as more customers signed up to the takeaway app.
The figures
Profit before tax plunged 98 per cent from £48.1m to £800,000.
Revenue was up 30 per per cent from £358.3m to £464.5m as orders increased 21 per cent to 123.8m. 2m net new customers joined the platform in the first half of the year.
The company said basic earnings per share dropped 115 per cent year on year to a loss of 0.8p, down from 5.5p the previous year.
Net cash generated by operations was £65.9m down 15 per cent from £77.2m.
What Just Eat said
Interim chief executive Peter Duffy said: “We’ve been working at pace and made good progress in the first half of the year to become the preferred food delivery app for our customers, with a broader choice of restaurants, a better user experience and a more personalised and impactful approach to communication.
“Performance in our UK business strengthened in Q2, our Canadian and European businesses are performing well and Australia has returned to top line growth with our delivery operations achieving gross profitability.
“These are strong foundations for Just Eat to build on, as the business continues to drive forward.”