Delivery Hero generates 66% revenue growth in the first six months of 2017
Berlin, 26 September 2017 – Delivery Hero Group (“Delivery Hero”), the leading global online food ordering and delivery marketplace, today reported strong total segment revenue growth in the first half-year of 2017. Total segment revenues grew to EUR 246.5 million (H1 2016: EUR 148.9 million), corresponding to a growth rate of 66% on a like-for-like basis, while order numbers grew by 47% like-for-like. At the same time the adjusted EBITDA margin improved significantly to -18% (like-for-like H1 2016: -47%).
Niklas Östberg, CEO of Delivery Hero, said:
“We had a fantastic first six months of 2017. We made significant investments in our service and saw great return from these investments. At the same time we achieved a good balance between strong growth and moving closer towards profitability. We continue to build on our global leadership positions and implement our vision to create an amazing takeaway experience.”
Group financial developments:
- Strong increase in first half-year 2017 segment revenues by 66% to EUR 246.5 million (like-for-like H1 2016: EUR 148.9 million)
- Growth across all regions with revenues in Europe growing by 36%, Middle East & North Africa by 86%, Asia by 91% and Americas by 117% (all on a like-for-like basis)
- Adjusted EBITDA margin improved significantly to -18% from -47% (like-for-like H1 2016)
Key operational highlights:
- Order numbers grew to 131.8 million in H1 2017 (H1 2016: 89.4 million), up by 47% on a like for like basis
- Gross merchandise volume (GMV) up by 51% on a like-for-like basis as Delivery Hero processed orders with a total GMV of EUR 1,752 million (H1 2016: EUR 1,164 million)
- Improved customer experience through successful own delivery roll-out in MENA and Americas (Q2 and Q3 2017)
- Roll-out of cross listing strategy for high-quality restaurants
- Successful start of a strategic partnership with AmRest, the largest publicly listed restaurant operator in Central Europe
- Acquisition of Carriage a fast-growing food delivery platform based in Kuwait and operating in the Gulf Council Countries¹
- Delivery Hero agreed to acquire the remaining shares in Foodfly, a Korean food delivery marketplace with own delivery
- Subsequent to the half year results, Delivery Hero agreed to acquire Appetito24, the leading food delivery marketplace in Panama to establish Delivery Hero as clear market leader in Panama
- Delivery Hero expects revenues between EUR 530m and EUR 540m for the financial year 2017
- Delivery Hero expects for 2017 to have an adjusted EBITDA margin between -15% to -17%.
- We remain committed to grow into EBITDA break-even for the group in 2018 and full-year adjusted EBITDA positive in 2019.²
Full half-year report
Delivery Hero’s full half-year report 2017 is available on the Investor Relations website: https://ir.deliveryhero.com/websites/delivery/English/3100/financial-reports.html
Key Performance Indicators
1 An indirect investment through GCC entities
2 Outlook based on total segment revenues
3 All numbers on a like-for-like basis. Like for like presents Delivery Hero’s results for the first half of 2016 as if the acquisition of foodpanda had occurred on 1 January 2016 and excludes contributions from operations reported in discontinued operations. In addition, please note that:
> No adjustments have been made for Hungerstation (first fully consolidated in July 2016).
> Asia KPIs (order and GMV) exclude our former operations in China, which were sold in May 2016.
4 Change H1 2017 compared to H1 2016 numbers on like-for-like basis
5 Total segment revenues
The presentation contains forward looking statements, other estimates, opinions and projections with respect to anticipated future performance of Delivery Hero AG (“Forward-looking Statements”). These Forward-looking Statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “anticipates”, “expects”, “intends”, “aims”, “plans”, “predicts”, “may”, “will” or “should” or, in each case, their negative, or other variations or comparable terminology. These Forward-looking Statements include all matters that are not historical facts. They appear in a number of places throughout this presentation and include statements regarding Delivery Hero AG’s intentions, beliefs or current expectations concerning, among other things, Delivery Hero AG’s prospects, growth, strategies, the industry in which it operates and potential or ongoing acquisitions. By their nature, Forward-looking Statements involve significant risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking Statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Similarly, past performance should not be taken as an indication of future results, and nor representation or warranty, express or implied, is made regarding future performance. The development of Delivery Hero AG’s prospects, growth, strategies, the industry in which it operates, and the effect of acquisitions on Delivery Hero AG may differ materially from those made in or suggested by the Forward-looking Statements contained in this presentation or past performance. In addition, even if the development of Delivery Hero AG’s prospects, growth, strategies and the industry in which it operates are consistent with the Forward-looking Statements contained in this presentation or past performance, those developments may not be indicative of Delivery Hero AG’s results, liquidity or financial position or of results or developments in subsequent periods not covered by this presentation. Any Forward-Looking Statements only speak as at the date of this presentation is provided to the recipient and it is up to the recipient to make its own assessment of the validity of any Forward-looking Statements and assumptions. No liability whatsoever is accepted by Delivery Hero AG in respect of the achievement of such Forward-looking Statements and assumptions.
About Delivery Hero
Delivery Hero is the leading global online food ordering and delivery marketplace with number one market positions in terms of restaurants, active users and orders in more countries than any of its competitors and online and mobile platforms across 40+ countries in Europe, the Middle East & North Africa (MENA), Latin America and the Asia-Pacific region. Delivery Hero also operates its own delivery service primarily in 60+ high-density urban areas around the world. The Company is headquartered in Berlin and has over 6,000 employees in addition to thousands of employed delivery drivers.
For more information, please visit www.deliveryhero.com.
WKN: A2E4K4; ISIN: DE000A2E4K43.
Bodo v. Braunmühl
Head of Corporate Communications