You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App
Join our mailing list to receive top business news every weekday morning.

Just Eat shares decline as growth in UK orders slows

The company sees revenue amounting to 1.1bn pounds.
Just Eat expects to conclude a deal with Takeaway.com by year end, in which it will sell itself for 5bn pounds in shares. Image: Krisztian Bocsi, Bloomberg

Just Eat’s shares fell as much as 6.4% in London trading on Monday after the company said UK order growth slowed in the third quarter.

Shares declined 6% to 587.6 pence at 8:56 am after earlier touching 622.8 pence, the biggest intraday retreat since September.

UK order growth slowed to 8% for the calendar third quarter — compared to 11% for the period before — after the company’s marketplace business slowed, Just Eat said in a statement on Monday.

Increased competition from the likes of Uber Eats and Deliveroo as well as easy access to grocery delivery may be impacting the business’s expansion, analysts at Peel Hunt said in a note to investors on Monday.

The company left its guidance for the full-year unchanged and expects revenue of as much as 1.1 billion pounds ($1.4 billion).

The firm agreed this year to sell itself to Takeaway.com of the Netherlands for 5 billion pounds in shares. The companies have said they expect the deal to close by year end. The deal gave Just Eat shares an implied valuation of 731 pence.

The UK competition regulator said last week that it had started a probe into Amazon.com’s bid for Roofoods, which does business under the Deliveroo brand.

© 2019 Bloomberg L.P.

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

COMMENTS   0

You must be signed in to comment.

SIGN IN SIGN UP

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: