Just Eat Takeaway down after earnings miss on weaker orders, higher costs

Investing.com -- Shares of Just Eat Takeaway.com NV (AS:TKWY) slipped on Wednesday after the Dutch company missed first-half 2025 earnings expectations, pressured by falling order volumes and increased investments in logistics and marketing.

The online food ordering and delivery company reported adjusted EBITDA of €147 million for the first six months of the year, 12% below its own consensus forecast of €158 million. 

The shortfall was primarily due to underperformance in the European segment, where adjusted EBITDA came in at €117 million, 29.5% below expectations. 

That weakness was only partially offset by better-than-expected results in the U.K. and Ireland, where adjusted EBITDA rose to €121 million, 9% above forecast, according to UBS data.

Gross transaction value (GTV) for the group reached €9.4 billion, missing consensus estimates by 0.7%. 

GTV in the Rest of World segment declined sharply to €1.2 billion from €1.45 billion a year earlier, 7.5% below expectations. 

In contrast, GTV in Europe slightly exceeded forecasts, while the U.K. and Ireland segment came in largely in line.

Group revenue totaled €1.75 billion, falling short of consensus by 1.4%. Regionally, revenue in the U.K. and Ireland missed by 1%, while the Rest of World segment underperformed by 3%. Europe came in 0.9% below expectations.

Order volumes continued to decline. Total (EPA:TTEF) orders dropped to 308 million from 330.4 million in the prior-year period. 

Orders in Europe fell 4% year-over-year, while those in the U.K. and Ireland declined 5%. Orders in the Rest of World segment were down 16% from a year ago. 

Despite this, average transaction values (ATVs) were stronger in core markets, with Europe and the U.K. and Ireland posting beats of 1.5% and 1.3%, respectively.

Just Eat Takeaway reaffirmed its full-year guidance but said it now expects GTV and adjusted EBITDA to fall at the lower end of its target ranges. 

The company is guiding for GTV growth excluding the Rest of World between 4% and 8%, and adjusted EBITDA of €360 million to €380 million. 

Free cash flow before changes in working capital is forecast to be around €100 million, down from €111 million estimated by UBS.

The company said it continues to execute on a €150 million investment plan focused on Europe and the U.K. and Ireland. 

Marketing spending in the U.K. and Ireland was up 31% year-over-year, while operational efficiencies such as a unified delivery model helped lower order fulfillment costs in the region.

Free cash flow before working capital changes declined to €16 million in the first half, compared with €41 million a year earlier.

In a separate update, Prosus (OTC:PROSF) NV extended the acceptance period for its public offer to acquire Just Eat Takeaway until Oct. 1. 

The only remaining hurdle is regulatory approval from the European Commission, which is expected to issue its decision on Aug. 11. 

EU regulators are also reviewing Prosus’s proposal to reduce its stake in Delivery Hero to below 10% in response to antitrust concerns.

“We see performance once again as weak, with weaker order/ GMV trends across the board partially offset by higher ATVs,” said analysts at UBS in a note.