By Scott Kanowsky
Investing.com -- Amsterdam-listed shares in Just Eat Takeaway (AS:TKWY) rose in mid-morning European trading on Wednesday after the food delivery service announced that it had posted positive core earnings in the third quarter, earlier than its initial expectations, thanks to cost cuts that helped outweigh a slide in orders.
Europe's biggest meal delivery group said adjusted income before interest, taxes, depreciation and amortization came in above-zero during the period, ahead of the schedule provided by the company at the beginning of the year. It added that it is also on track to deliver on its long-term margin target.
Gross transaction value, a measure often used by e-commerce firms, grew slightly by 2% thanks to higher menu prices and positive foreign exchange movements. However, the number of orders processed by the company fell by 11% compared to the same three-month period last year to 235 million.
Just Eat Takeaway flagged that the consumer backdrop remains "challenging," particularly as customers rein in spending due to soaring cost-of-living expenses. But it said it was "well-positioned" to achieve future growth in profits.
The firm now expects to report positive adjusted EBITDA in the second half of 2022. Meanwhile, full-year gross transaction value is seen expanding annually in the low-single digits, down from the prior guidance of a mid-single-digit increase.