Just Eat Takeaway.com (TKWY) Q2 2024 earnings summary

Executive summary

• Constant currency GTV growth excluding North America was 3% in H1 2024, in line with guidance.

• Adjusted EBITDA rose over 40% year-on-year to €203 million.

• Free cash flow before working capital changes reached €38 million, up significantly from H1 2023.

• A new €150 million share buyback programme was launched, with 5% of issued shares to be cancelled.

• Net loss widened to €301 million, mainly due to non-cash impairment losses and amortisation of intangibles from acquisitions.

Financial highlights

• Group GTV (excluding North America) grew 3% year-on-year; total group GTV declined 1-2%.

• Adjusted EBITDA margin improved to 1.5% of GTV, up from 1.1% in H1 2023.

• Revenue was €2,570 million, down 1% year-on-year; revenue less order fulfilment cost per order increased by 7%.

• Free cash flow before changes in working capital was €38 million, compared to minus €78 million in H1 2023.

• Net loss for the period was €301 million, compared to €258 million in H1 2023.

Outlook and guidance

• 2024 guidance reiterated: constant currency GTV growth (excluding North America) of 2–6% year-on-year.

• Adjusted EBITDA for 2024 expected to be approximately €450 million.

• Free cash flow before changes in working capital expected to remain positive in 2024 and beyond.

• Long-term target of group adjusted EBITDA margin in excess of 5% of GTV reaffirmed.

• Management continues to explore partial or full sale of Grubhub, with no certainty on timing or outcome.