Just Eat raises forecast after strong third quarter
Take away delivery service Just Eat has raised its full year guidance after reporting strong earnings that saw the company’s revenue rise by almost 50%. Propelled by strong growth in orders, the company’s revenue for the quarter rose 47% against the same period a year ago to £138.6 million. Revenue’s for the year to date are not far behind, seeing growth of 45% year on year to £385.2 million.
Just Eat’s share price has risen by 34% so far this year
SOURCE: Yahoo Finance
This jump in revenue is partly down to the inclusion of SkipTheDishes, the company’s North American operation. But it was also due to strong underlying growth in orders, which were up 29% from the year-ago quarter.
The company’s CEO, Peter Plumb, said "It is great to see the UK business in good health and positive momentum across our international markets, particularly in Canada where SkipTheDishes' delivery expertise and relentless focus on customer service are driving excellent results."
The company also announced that its proposed acquisition of Hungryhouse had received provisional clearance from the Competition and Markets Authority in the UK, something investors have been waiting to hear for sometime.
In light of the strong results and positive news for the future, Just Eat said that it was raising its guidance. It now expects revenue for 2017 within the range of £515 million to £530 million. This is up from earlier forecasts of revenue within a range of £500 million to £515 million.
Dominion holds Just Eat in its Global Trends Managed Fund.
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