JUST EAT reports 59% growth in revenues in H1

The digital platform for takeaway food orders, JUST EAT (LON: JE) today reported record earnings up 59% from the first half of 2015 as orders over the platform having more than doubled compared to H1 the past year.

JUST EAT revenues for the first half of 2016 stood at £171.6 million, up 59% from last year’s £107.8million by the 30 June.

Basic earnings per share were up a staggering 118% to 3.7p compared to 1.7p in the same time period last year.

Underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 107% to £53.4million.

Net cash flows grew to £47.8million and represent a 97% conversion from EBITDA excluding restaurant cash, compared to 88% conversion rate in H1 2015.

The astonishing growth in revenues was driven by a 55% increase in orders, from 41.9million in the first half of 2015 to 64.9milllion in the period of 2016 ending on the 30 June.

The platform now processes orders worth more than £1.1billion, up more than 400 million from H1 2015, for restaurants in 13 countries around the world.

Active user numbers were up 45% to 15.9million.

70% of all orders now come in via mobile devices compared to 60% in the same period last year.

CEO David Buttress commented:

“JUST EAT has made a very strong start to 2016. […] Particularly pleasing has been the continued scaling of our international markets in the period, highlighted by our success in creating the clear market leaders in Spain, Italy and Mexico.”

The company acquired businesses in Italy, Brazil, Mexico and Spain earlier this year and reports that the integration of the businesses is progressing well.

The company has increased its’ forecast on full year revenues to £368million, dependent on exchange rates remaining at current levels. This represents an upgrade of £10million from former forecasted figures. £7million of the upwards adjustments are attributed to an improved trading positions and £3million to favourable changes in exchange rates.

JUST EAT also hopes to profit from investment in product, technology and marketing throughout the second half of 2016 as it reports that it will continue to invest in its’ business for “profitable growth”.

JUST EAT PLC (LON: JE) share prices jumped 7.7% on the encouraging earnings report in early morning trading to a high of 522.0.

At 1.04pm JUST EAT PLC shares were trading at 508.61(+5.11%).

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