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Just Eat Takeaway cuts delivery costs as UK boosts earnings

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The UK and Ireland’s love for takeaways and a “simplification” of its delivery model boosted Just Eat Takeaway’s financial results in the first half of the year, but negative growth in North America and southern Europe led to a small drop in overall revenue.

Total revenue dropped by less than 1% at the London-listed food delivery platform year on year in the first half of 2024, going from €259m for H1 2023 to €257m in H1 2024.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 42% to reach $203m globally. The Netherlands-headquartered firm attributed this rise in earnings to a reduced delivery cost per order. UK adjusted earnings increased at a higher rate, 64%, to €92m.

“The delivery cost per order has notably improved in H1 2024 compared with H1 2023, enabled through the simplification of our operations. We completed transition of all UK logistics orders to our own delivery platform in July 2024,” a trading update posted on the London Stock Exchange stated.

Jitse Groen, CEO and founder of Just Eat Takeaway, said: “Driven by growth of our partner base, expansion of our Delivery coverage and significant technological advancements, GTV growth further improved in H1 2024.”

Groen added: “We are well on track to achieve our guidance for the full year.”

While those in the UK have been eager to spend more on each order, with revenue on a constant currency basis growing by 4% in the UK and Ireland, the number of global active consumers at Just Eat fell by 6% to 81 million year on year, as did the average monthly order frequency.

A similar picture was seen in southern Europe and North America.

Revenue dropped by 14% in southern Europe, which Just Eat said was “driven by our committed path to profitability in markets with highly competitive pressure and challenging performance in Israel”.

Meanwhile, orders in North America fell by 9% year on year, due to a “lower consumer base as a consequence of increasing food prices and the competitive nature of the North American market”, it added.

Just Eat also announced a new share buyback programme of up to €150m. It follows another $150m scheme last year.

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