Just Eat reports shrinking core loss, maintains profitability forecasts - Reuters

A Just Eat delivery man rides his bicycle in Nice amid the coronavirus disease (COVID-19) outbreak in France, February 16, 2021. REUTERS/Eric Gaillard/File Photo

AMSTERDAM, Aug 3 (Reuters) - Just Eat Takeaway.com (TKWY.AS), Europe's largest meals delivery company, on Wednesday reported a smaller core loss for the first half of 2022 and maintained its growth and margin forecasts for the full year.

Revenue came in at 2.78 billion euros ($2.83 billion), compared with 2.6 billion euros in the first six months of 2021 and analysts' expectation of 2.8 billion euros, according to Refinitiv data.

Takeaway reported adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of negative 134 million euros, improving from a loss of 189 million euros in the same period a year earlier.

"Our path to profitability is accelerating and we expect to continue to materially improve our adjusted EBITDA in the second half of this year and to be adjusted EBITDA positive at a group level in 2023," Chief Executive Jitse Groen said in a statement.

Just Eat took a 3.5 billion euro impairment charge on Grubhub on Wednesday, recognising that sector valuations have fallen as the COVID pandemic effects fade and amid fears that squeezed consumers will order less. read more

The company reiterated that it is exploring the "full or partial" sale of Grubhub, the U.S. company it bought in 2021 for $7.3 billion, but which has been losing market share. read more

Last month, Just Eat struck a deal with Amazon offering Amazon Prime users free delivery in the Grubhub app in the hope of restoring its competitiveness. read more

Takeaway's shares are down more than 60% this year, closing at 18.80 euros on Tuesday.

($1 = 0.9824 euros)

Reporting by Toby Sterling; Editing by Subhranshu Sahu and Shailesh Kuber

Our Standards: The Thomson Reuters Trust Principles.

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Just Eat reports shrinking core loss, maintains profitability forecasts - Reuters
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