Just Eat Plc (LON:JE) has this morning served up an an upbeat set of first-half results, posting a 62 percent surge in underlying earnings.
Highlights from the company statement:
The Group's revenues grew 54% (H1 2014: 58%) compared to the same period last year, reaching £107.8 million (H1 2014: £69.8 million). On a forex neutral basis, revenue growth would have been 58% (H1 2014: 61%).
David Buttress, Chief Executive Officer, commented
"JUST EAT has made a very strong start to 2015, increasing the numbers of active users, takeaway restaurants and orders. We have seen the success of our ongoing strategy to reinvest profits above target to drive additional growth. I am particularly pleased to see the results of our mobile strategy which has already created a much improved experience for our app and mobile users. We have acquired market-leading operations in three new rapidly growing markets of scale: Mexico, Australia and New Zealand. I would like to thank the entire JUST EAT team, who have worked tirelessly to achieve these results."
Current Trading and Outlook
Our 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 exciting 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 £230 million, with such revenue over-performance expected to continue into 2016. By the end of the current financial year, we intend to invest an additional £8 million in marketing in our core markets, together with an additional £5 million of investment into technology and our Latin American teams. Notwithstanding this significantly increased investment, we remain on track to deliver EBITDA for the current year in line with expectations.