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Investing.com -- Delivery Hero reported gross merchandise value (GMV) of 12.2 billion euros for the third quarter, a 7% like-for-like increase at constant currency, broadly matching analyst expectations of 12.25 billion euros.
The company said it expects GMV growth to pick up in the final quarter of the year as demand in its Asian operations improves.
"Early signs from Q4 are encouraging, especially thanks to the turnaround in Korea, and we’re expecting to finish the year with return to growth in Asia and faster group GMV growth in the final quarter," CEO Niklas Oestberg said.
Shares in Delivery Hero surged nearly 9% after the report.
The company also said its quick-commerce unit posted its first-ever quarterly profit, keeping it on track to break even for the full year. That business accounts for around 7% of total GMV.
RBC Capital Markets analyst Wassachon Fon Udomsilpa said this was "an in-line trading update from Delivery Hero."
"There are some encouraging signs pointing to a turnaround in Korea and the company expects Asia to return to GMV growth in Q4 (versus consensus at +2.8%), which should be reassuring," she added.
Delivery Hero’s total segment revenue rose 22% on a like-for-like basis to 3.7 billion euros in the quarter. Gross profit margin expanded by 40 basis points year-on-year to 8.0%.
The group also reported continued improvement in free cash flow and ended the quarter with 2.2 billion euros in cash.
It reaffirmed its full-year guidance.