FILE PHOTO: Drivers of meals supply service Meituan are seen in Shanghai, China June 25, 2018. Information/Aly Track/File Picture
BEIJING (Information) – Chinese language meals supply large Meituan Dianping beat market expectations to report a 44% soar in third-quarter income and submit a second straight quarterly revenue, because it gained market share and cemented its dominance within the enterprise.
Competitors in China’s meals supply sector has turn into much less cut-throat as corporations roll again profit-damaging subsidies, which in flip has allowed Meituan to capitalize on its first-mover benefit over rivals within the nation’s smaller cities.
In keeping with analysis agency Trustdata, Meituan has steadily elevated its share of China’s meals supply market to 65.eight% as of end-September, in contrast with 60.1% a 12 months earlier.
Income for Meituan, which is China’s third-biggest web firm by market worth and is backed by gaming large Tencent Holdings Ltd, got here in at 27.49 billion yuan ($three.5 billion) for the July-September quarter, up from 19.1 billion yuan in the identical interval a 12 months earlier.
That compares with a market consensus estimate of 25.92 billion yuan drawn from 11 analysts, based on Refinitiv I/B/E/S information.
It booked a revenue of 1.33 billion yuan, its second consecutive quarter of revenue since itemizing final September.
“The 2 consecutive quarters of profitability offers buyers extra confidence on the meals supply enterprise mannequin,” stated David Dai, an analyst at Bernstein Analysis.
Meituan’s meals supply division – its core enterprise – reported income of 15.58 billion yuan within the quarter, a 39.four% enhance from a 12 months earlier.
Meituan stated gross transaction volumes for the quarter rose 33.6% to 194.6 billion yuan, whereas the annual variety of transacting customers climbed 14% to 435.eight million. Valued at some $72 billion, Meituan operates one in all China’s hottest tremendous apps, additionally providing journey bookings, restaurant suggestions, film tickets, bike sharing and map companies.
Reporting by Yingzhi Yang and Brenda Goh; Enhancing by Alex Richardson and Muralikumar Anantharaman