Deliveroo profits beat estimates after cutting advertising costs


Deliveroo Plc reported earnings above analysts’ estimates after the company announced it would tighten its marketing budget and cut costs.

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(Bloomberg) – Deliveroo Plc reported earnings above analysts’ estimates after the company announced it would tighten its marketing budget and cut costs.

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Adjusted profit before interest, tax, depreciation and amortization was a loss of £68 million ($82.1 million) in the first half, the company said in a statement on Wednesday. That compared to analysts’ average estimate for a loss of £73.3m, according to a Bloomberg survey.

In July, the London-based food delivery company cut its forecast for sales growth this year. Delivery companies across the industry have faced worse-than-expected slowdowns in order growth, with higher energy bills and inflation eating away at customer revenue.

“We made good progress in delivering on our profitability plan, despite increasing consumer headwinds and slowing growth during the period,” chief executive Will Shu said in the statement. “Our progress is based on a disciplined approach to capital allocation, ensuring that we invest behind the opportunities that offer the highest returns.”

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