German online takeaway food company Delivery Hero on Friday forecast a smaller loss for the year as it shifts its focus more firmly to profitability in the improving competitive environment.
The shares, which have lost more than a half of their value since the start of the year as investors moved away from pandemic-era darlings, were up 12.9% at 09:56 GMT.
The Berlin-based group now sees smaller negative margin on adjusted core loss (EBITDA) in 2022, at -0.9% to -1% of gross merchandise value (GMV), against a previous guidance of -1% to -1.2%.
"The scale of improvement in the loss is better," Berenberg analyst Sarah Simon said, adding the investor sentiment is much more geared towards profitability now.
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Outlook
Delivery Hero cut its full-year revenue forecast to between €9.0 billion and €9.5 billion ($9.14 billion-$9.65 billion) from a previous range of €9.5 billion to €10.5 billion.
Including Spanish delivery startup Glovo where it holds a majority stake, the group sees revenue of €9.8 billion to €10.4 billion for the year, with an adjusted EBITDA/GMV margin of -1.5% to -1.6%.
It expects its platform business - including loss-making Glovo - to break even on adjusted EBITDA level in the third quarter, and to generate between €40 million and €120 million in the fourth.
It had previously forecast fourth-quarter EBITDA of between €0 to €100 million for the platforms segment.
Delivery Hero also released preliminary figures for the second quarter, including a 38% boost in quarterly revenues to €2.1 billion driven by strong performance in its core food delivery business.
News by Reuters, edited by ESM – your source for the latest technology news. Click subscribe to sign up to ESM: European Supermarket Magazine.
