China's Meituan Quarterly Revenue Rises 33.4%, Beats Estimates

Reuters2023-08-24

SHANGHAI, Aug 24 (Reuters) - Chinese food delivery giant Meituan on Thursday posted a bigger-than-expected 33.4% rise in quarterly revenue, defying a slowing Chinese economy.

Meituan - which has an app that provides services as varied as bike-sharing, ticket-booking and maps - reported April-June revenue of 67.9 billion yuan ($9.33 billion), versus 50.9 billion yuan in the same period a year earlier.

The result was higher than the 66.7 billion yuan average of 15 analyst estimates compiled by Refinitiv.

Net profit for the second quarter hit 4.7 billion yuan, from a loss of 1.1 billion yuan a year earlier.

Last year's April-June quarterly results were hit by China's COVID-19 containment measures, which included a strict two-month lockdown in Shanghai that made the city largely inaccessible to delivery services.

China's post-pandemic recovery has lost steam in recent months as demand remained lacklustre at home and weakened abroad, giving rise to a trend that has seen low-cost and discounted products become the focus for platforms and shoppers alike.

Revenue from core local commerce, which includes food delivery and non-food delivery service Meituan Instashopping, rose 39.2% to 51.2 billion yuan.

Sales from new initiatives grew by 18.4% year on year to 16.7 billion yuan.

Meituan remains China's biggest delivery platform, with a 69% share of the 1 trillion yuan market, showed data from researcher ChinaIRN.

($1 = 7.2777 Chinese yuan)

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