PHOTO FILE: Drivers of Meituan food delivery service seen in Shanghai, China 25 June, 2018. REUTERS / Aly Song / File Photo
BEIJING (Reuters) – Chinese food giant Meituan Dianping broke market expectations to record a 44% jump in third-quarter income and direct second quarter profits, getting market share and consolidating its leadership in the business.
Competition in the Chinese food delivery sector is never smaller than companies return subsidized profit, allowing Meituan to benefit from competitors in smaller cities in the country.
According to the Trustdata research firm, Meituan has increased its share of the Chinese food delivery market to 65.8% by the end of September, compared with 60.1% in the previous year.
Revenue for Meituan, which is China's third largest internet company according to market value and supported by gaming man Tencent Holdings Ltd, joined at 27.49 billion yuan ($ 3.5 billion) for the fourth July-September. , up from 19.1 billion yuan the same period a year earlier.
That compares with a market consensus estimate of 25.92 billion yuan from 11 analyzes, according to data Refinitiv I / B / E / S.
He booked a profit of 1.33 billion yuan, the second consecutive quarter of profit since enlisted last September.
“The two consecutive quarters of profitability give investors greater confidence in the food delivery business model,” said David Dai, an analyst at Bernstein Research.
Meituan food delivery division – its core income – reported income of 15.58 billion yuan in the quarter, increased 39.4% from a year earlier.
Meituan said that the gross number of transactions for the quarter rose to 33.6% to 194.6 billion yuan, and that the annual number of users dealing with 14% went to 435.8 million. Meituan, which is valued at around $ 72 billion, is operating one of China's most popular apps.
Reporting by Yingzhi Yang and Brenda Goh; Edited by Alex Richardson and Anantharaman Muralikumar
. t) Technology (TRBC) (t) Asia / Pacific (t) Major News (t) Pictures (t) Emerging Market Countries