Just Eat Takeaway.com (TKWY) Q4 2018 earnings summary

Executive summary

• FY18 active consumers reached 14.1m, up 23%; orders rose 38% to 94m, GMV rose 37% to €1,796m and gross revenue increased 44% to €240m.

• Adjusted EBITDA loss narrowed to €11.3m from €27.6m in 2017, supported by improved marketing efficiency and Scoober operating leverage.

• Strategy focused on defending market leadership, scaling technology and Scoober, improving profitability and disciplined portfolio management.

Financial highlights

• Gross revenue was €240m, up 44%; net revenue was €232m excluding the €8m IFRS 15 voucher adjustment.

• Gross profit rose 38% to €189m; gross margin was 81% of net revenue and 82% excluding the voucher reclassification.

• Adjusted EBITDA was -€11.3m versus -€27.6m in 2017; adjusted EBITDA margin improved to -5% from -17%.

• Average commission rate rose 0.7 percentage points to 12.1%; reported marketing was €128m, up 10% and 53% of gross revenue, down 17 percentage points YoY.

Outlook and guidance

• No 2019 outlook was issued pending the Delivery Hero Germany acquisition and related share issuance; guidance was to be reassessed later.

• Priorities included expanding market leadership and brand awareness, improving technology and mobile apps, raising profitability and developing Scoober in selected markets.

• Annual cost synergies from the German transaction, mainly in marketing, were expected to exceed €60m by 2020.