China food delivery giant Meituan posts fourth straight quarterly loss

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SHANGHAI, Nov 26 (Reuters) – Chinese food delivery giant Meituan (3690.HK) reported a fourth consecutive quarterly loss on Friday, because it plowed extra funding into increasing its varied companies.

Tencent-backed (0700.HK) Meituan, whose companies additionally embrace restaurant evaluations and bike sharing, reported a ten billion yuan ($1.57 billion) loss within the July-September interval versus a revenue of 6.3 billion yuan a yr earlier.

Excluding one-off objects, it reported an adjusted web loss of 5.5 billion yuan for the quarter, in contrast with analysts’ estimate of 5.3 billion yuan.

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Revenue rose 37.9% within the interval from a yr earlier to 48.8 billion yuan.

That in contrast with a 48.6 billion yuan common of 13 analyst estimates polled by Refinitiv.

The 11-year-old Meituan has been increasing aggressively into resort reserving and neighborhood group-buying, taking over such rivals as Alibaba (9988.HK) and Pinduoduo (PDD.O).

Food delivery, the corporate’s core enterprise, posted quarterly income progress of 28% to 26.5 billion yuan.

Revenue from new initiatives, together with its neighborhood group-buying service, Meituan Select, grew by 66.7% year-on-year to 13.7 billion yuan.

Like a lot of its Chinese tech friends, it has run into regulatory hurdles over the previous yr, as Chinese authorities crack down on monopolistic habits.

In October, the nation’s antitrust regulator fined Meituan 3.4 billion yuan ($527.4 million) for abusing its dominant market place, equating to three% of its home gross sales in 2020. learn extra

Meituan has additionally confronted criticism for its remedy of delivery riders, most of whom will not be coated for fundamental social and medical insurance coverage. The firm mentioned in its assertion that it had launched an occupational harm safety pilot program and deliberate to roll out extra welfare initiatives.

($1 = 6.3888 Chinese yuan renminbi)

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Reporting by Brenda Goh; Editing by Edmund Blair and Kim Coghill

A Meituan delivery worker wearing a face mask, following the outbreak of the coronavirus disease (COVID-19), has his temperature checked as he enters a shopping complex, in Beijing, China July 15, 2020. REUTERS/Tingshu Wang/File Photo