Just Eat delivers strong first quarter numbers

The group, which was promoted to the FTSE 100 in December, processed 51.6m curry, pizza, sushi and kebab orders in the first three months of the year, 32% higher than at this time last year.

Having hitherto mainly offered an online marketplace for the lethargic and hungry to find and order food from local restaurants, Just Eat has recently begun expanding its delivery services. This activity, which has always been part of the offer in its original market of Denmark and via courier at its 2016 acquisition SkipTheDishes in Canada, is seen by the company as an £18bn market opportunity that increases its profit margins.

So, not only were first quarter revenues up 49% to £177.4m, driven by strong order growth in the UK and overseas, but there was also a greater proportion of these higher-value delivery orders in the mix.

UK orders, which have been under the microscope due to the competition from cash-rich rivals Deliveroo and UberEats, were up 24% to 29.7m in the quarter, including the 400 millionth order in the region, or 18% without the 1.4m contribution from Hungryhouse.

International orders leapt 46% to 21.9m as Canada saw further triple-digit order growth, while strong performances in Italy and Spain were partly offset by softness in Australia. Management said Australia's Menulog online platform was rejigged and in April a delivery service was launched using the Canadian courier model.

Chief executive Peter Plumb reiterated guidance for full year revenue of £660-700m and underlying earnings before interest, tax, depreciation and amortisation of £165-185m.