Just Eat 2

Revenues rose 25% but investors were not pleased with the slowing performance

Just Eat revenues have risen 25% in the third quarter to reach £247.5m, as orders through the delivery firm saw double-digit increases.

In the three months to 30 September, Just Eat received a total of 62 million orders, up 16% on the comparative period a year ago.

Of these, 33 million were from the UK, driven by “rapid growth in Just Eat’s delivery proposition”.

In Europe, order growth was “good”, driven by strong performances in Italy and Switzerland and new brand partnerships in Spain.

Meanwhile, Just Eat’s struggling Australian business “remained on its recovery path”.

So far this year, revenues amounted to £717.8m, up 28% on 2018.

The latest figures, however, failed to please investors with Just Eat shares trading 5.6% lower on Monday morning at 588.80p.

Despite double-digit growth, the company “hasn’t delivered enough to leave investors feeling satisfied”, AJ Bell investment director Russ Mould said.

He added: “Ultimately today’s numbers show growth has slowed since the first half in the third quarter of the year.

“The market has been a bit grumpy with Just Eat since the summer when the group agreed its merger with Dutch firm Takeaway.com – with the 15% premium to the company’s previous close seen as a very miserly portion.”

Commenting on the £9bn deal, the company said it expected a shareholder vote to be held in December and, if approved, the merger to complete before the end of 2019.

CEO Peter Duffy said: “We are seeing strong growth in many of our markets, including Canada, Europe and pleasingly Australia, where we are starting to reap the benefits of our turnaround plan.

“Our UK marketplace business is a strong and clear leader; however, we are seeing a structural shift, with increasing demand on our platform from customers for broader cuisine choice and more meal occasions, led by quick service restaurant chains. The strong growth in our UK delivery business shows that we can successfully meet these needs.”

Looking ahead, the company reiterated its annual guidance of revenue between £1bn and £1.1bn.

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