In the first trading update since completing the acquisition of Grubhub in the US, the FTSE 100-listed food delivery platform operator said it expects to move back towards profitability in the second half of 2021 and beyond.
Underlying (EBITDA) losses “peaked” – though no figures were given – in the period due to investment in the business and fee caps in North America, the company said, though these caps have now been removed.
The combined group grew food order numbers 51% in the first half and guidance for the full year order growth was lifted to “more than 45%” from the previous “more than 42%”.
Gross transaction value (GTV) for the full year for the enlarged group is expected to be in a range of EUR28bn to EUR30bn, with adjusted EBITDA margin expected to be between -1% and -1.5% of GTV.
Management said they will continue to invest in growth and prioritise market share over underlying earnings (EBITDA).
Investment in the UK saw the Just Eat brand grow online share in the UK during the period, including a “significant inflection” in London as order numbers jumped by triple digits compared to last year.
Following the completion of the Grubhub acquisition, a review “to determine the optimal listing venues for the company’s long-term future” is ongoing, which could result in the GBP16bn-plus company ceasing to be eligible for the FTSE 100.