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Investing.com -- Delivery Hero (ETR:DHER) on Thursday reported mixed results for the second quarter and the first half of the year, beating revenue and earnings expectations while gross merchandise value (GMV) missed the mark.
Revenue rose 27% year-on-year on a like-for-like basis at constant currency, reaching 3.7 billion euros ($4.3 billion), ahead of analysts’ forecasts of 3.5 billion euros in a company poll.
The company said that the figures exclude businesses exited in 2024 and 2025 as well as suspended restaurant directory services in Spain and South Korea.
GMV in Q2 rose 11% year-on-year on a like-for-like basis to €12.2 billion, slightly below the consensus estimates.
Delivery Hero noted a "positive momentum in Asia, highlighted by a return to growth in APAC and improved growth dynamics in South Korea."
For the first half (H1) of the year, GMV also climbed 11% on a like-for-like basis to €24.6 billion. Total segment revenue increased 25% to €7.2 billion over the same period.
Adjusted EBITDA for the first half surged 71% from a year earlier to €411 million, with the margin improving by 70 basis points to 1.7% of GMV.
Jefferies analysts said the H1 revenue and adjusted EBITDA were 3.7% and 7% ahead of consensus estimates.
The update followed Wednesday’s decision to cut full-year profit and cash flow guidance, citing currency headwinds from a stronger euro against U.S. dollar-pegged currencies and the Korean won.
Delivery Hero now expects adjusted EBITDA of 900 million to 940 million euros, down from its earlier outlook of 975 million to 1,025 million euros. Free cash flow guidance was reduced by about 40% to more than 120 million euros.
The company still anticipates gross merchandise value (GMV) growth at the upper end of its 8% to 10% range for 2025.
"Calling how the equity will respond to the H1 results is difficult," Jefferies analysts said, noting that solid Q2 and H1 numbers, a strong EBITDA beat and improving growth trends are clear positives.
On the downside, the analysts flagged that consensus is about 7% below the company’s downgraded full-year 2025 EBITDA guidance, though they stressed the cut is “solely driven by FX” and should have been anticipated given U.S. dollar moves this year.
They added that the stock remains most sensitive to developments in South Korea, pointing to local reports suggesting Baemin has been “incredibly active” commercially this summer, consistent with management commentary.
"For this reason, after some pressure at the open, we would expect to see an overall positive response in the equity today," analysts led by Giles Thorne concluded.
RBC Capital Markets analyst Wassachon (Fon) Udomsilpa said Delivery Hero posted "a mixed set of results," pointing to the slight Q2 GMV miss and the better-than-expected H1 EBITDA.