Shares slump 14 per cent after the announcement
British takeaway food app Just Eat has announced that it would invest an additional £50m in 2018 to stay ahead of competition. A “significant part” of this would be invested on expanding delivery service in the UK, Australia and Canada.
In its trading update today, Just Eat reported a 45 per cent surge in revenue for last year amid international and domestic expansion, as well as its recent £200m acquisition of Hungryhouse. However, its shares slumped more than 14 per cent after the announcement.
The app — which competes with Deliveroo and Uber Eats — added: “We expect these investments to improve overall group performance over the medium- to long-term, helping us to capture clear opportunities and insulate the business from fast-moving and well-capitalised competitors.”
“2017 was a record year for Just Eat,” said chief executive Peter Plumb, adding: “More restaurant partners joined our platform, increasing the breadth of choice for our customers and strengthening the group’s geographical coverage to over 82,000 restaurants.”
For 2018, Just Eat expects underlying core earnings of between £165m to £185m.