Just Eat Takeaway reported a more than 40% jump in first-half core profit on Wednesday, led by its main European markets, and announced a share buyback programme.
The food delivery group also said it was focused on using technology to cut costs further.
Europe’s biggest food delivery company by revenue posted half-year adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of €203 million.
A consensus of analysts had forecast €196 million.
Shares rose more than 10% in early trade before pairing gains slightly.
Regions
In Northern Europe, gross transaction value (GTV) – a common metric for food delivery companies – increased by 5%.
It also grew by 6% in Britain and Ireland, although it fell by 9% in North America, where the company had fewer orders and more competition.
Britain and Ireland’s adjusted EBITDA leapt by 64%, which chief executive Jitse Groen said followed a shift to an in-house delivery platform.
It also jumped 57% in North America – despite a free cap in New York City on how much it can charge restaurants for delivering meals.
Just Eat reiterated its plans to sell part of its Grubhub unit in the US, which it brought in 2020 and has been looking to sell since 2022.
In Northern Europe, however, adjusted EBITDA dropped 3% as the company invested in entering new cities, expanding existing delivery zones and extending opening hours.
Groen said in a statement the overall improvement in GTV followed “growth of our partner base, expansion of our delivery coverage and significant technological advancements.”
He also said the focus remained on reducing costs and using AI to reduce the workload at its call centre.
The company also announced a share buyback programme of up to €150 million, citing its strong liquidity position.
It retained its annual core profit forecast announced in late February.
Read More: Just Eat Teams Up With Amazon In Three European Countries
