Just Eat delivers 63% rise in first-half profit
Takeaway ordering app Just Eat posted a 63% increase in first-half pre-tax profit as active users rose, and said it now expects revenue for the year to be higher than previously thought.
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Pre-tax profit for the six months ended 30 June, came in at £14m from £8.6m in the first half of last year, on revenue of £107.8m, up 54% from £69.8m. No dividend was declared for the first half as the company said it intends to retain any earnings to expand the growth and development of the business.
Just Eat said strong growth in the UK business continued in the period, with orders up 49% to 30.7m and the number of active users up 59% to 11m. This was underpinned by driving more app downloads, increasing traffic to the website and improving both conversion and consumer reorder rates.
The company said its focus on driving incremental revenue by further investing in technology and marketing is expected to continue into the second half of the year, alongside additional investment into the early-stage Brazilian and Mexican markets.
As a result of the additional orders delivered by this extra investment, management now expects revenue for 2015 of around £230m, “with such revenue over-performance expected to continue into 2016”.