February 7, 2018 / 10:05 AM / a month ago

UPDATE 1-Delivery Hero shares rise as Q4 revenue soars

(Updates with share price reaction, background, CEO comment)

Feb 7 (Reuters) - Delivery Hero, a German online food delivery platform, said on Wednesday its fourth-quarter revenue surged 51 percent to 160 million euros ($198.34 million), buoyed by strong order growth, especially in the Middle East and North Africa.

The results were well received by the investors, with the shares in the company rising 5 percent by 1000 GMT.

Full-year revenue rose 60 percent to 544 million euros, beating the company’s expectations of 540 million euros.

Delivery Hero Chief Executive Niklas Ostberg reiterated confidence in achieving 2018’s targets. The company previously said it expects to reach EBITDA (earnings before interest, tax, depreciation and amortisation) break-even this year.

Delivery Hero is the world’s biggest food delivery platform but is competing for control of its home market with Takeaway.com.

Online food delivery is seen as a “winner takes all” business, meaning there is only enough space in most markets for one or two major players.

The CEO of the Dutch company, Jitse Groen, said in an interview in January that orders at Takeaway.com’s German unit Lieferando were estimated to have outstripped those of Delivery Hero’s top German brands Lieferheld and Pizza.de by 20 percent in the fourth quarter.

Delivery Hero, whose competitors also include Deliveroo, UberEATS and Amazon, doesn’t disclose details about its performance in the German market, but it said that the orders in the European region, that also includes its home market, grew by 27 percent in the fourth quarter.

The company, which had its stock market debut in Frankfurt last year, will publish its full annual report for 2017 on April 26, in which it will present details about its profitability in the period.

Shares have risen 30 percent from its initial public offering price. ($1 = 0.8067 euros) (Reporting by Sylwia Lasek; Editing by Sherry Jacob-Phillips and Louise Heavens)

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