Meituan Tumbled Over 5% in Morning Trading after Posting 31% Jump in Q4 Revenue and Higher Losses

Tiger Newspress2022-03-25

Meituan tumbled over 5% in morning trading after posting 31% jump in Q4 revenue and higher losses.Meituan on Friday (Mar 25)  reported a better-than-expected 30.6 percent rise in fourth-quarter revenue, at the same time as investment in new initiatives increased losses.

Meituan, whose services also include restaurant reviews and bike-sharing, said revenue rose to 49.52 billion yuan (US$7.78 billion) in the final three months of 2021.

Consensus analysts expectations were for 49.20 billion yuan, Refinitiv Eikon data showed.

Quarterly loss swelled to 5.34 billion yuan from a loss of 2.24 billion yuan a year earlier, as Meituan invested in initiatives including its community e-commerce unit Meituan Select and Kuailv Jinhuo, a B2B unit delivering fresh food to restaurants.

Revenue in the food delivery business, which accounts for over half of Meituan's total revenue, increased 21.3 percent to 26.13 billion yuan over the quarter.

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Comments

  • th0mastan
    2022-03-27
    th0mastan
    The losses are part of the business strategy to reinvest in future growth and the cost related to other causes to align with govt initiatives 
  • Pluto891
    2022-03-27
    Pluto891
    losses create fear. But growth stocks burn millions and billions , yet no fear? I think hype is the word to describe the situation.
  • halforc
    2022-03-26
    halforc
    Like
  • StartSmall
    2022-03-26
    StartSmall
    Buying opportunities 
  • Bspn
    2022-03-26
    Bspn
    Ok
  • vaicrazy
    2022-03-26
    vaicrazy
    Ok
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