January 23, 2018 / 8:51 AM / in 4 months

UPDATE 1-Online pizza orders help DP Eurasia deliver 33 pct sales growth

(Adds shares, analyst comments, details)

Jan 23 (Reuters) - DP Eurasia, operator of the Domino’s Pizza brand in Turkey and Russia, reported a 32.8 percent rise in annual sales on Tuesday helped by expansion of its store networks and boost from online orders.

Online orders, supported by revamped mobile apps and investment in its technology, jumped by 72.2 percent and accounted for more than half of all deliveries compared to 42.4 percent in 2016, it said.

Its efforts to boost online sales have included a loyalty programme in Turkey.

“Growth in online is particularly encouraging and with what we view as a best-in-class IT system, Domino’s is well-placed for meaningful share gains,” Liberum analysts wrote in a note, reiterating its “buy” recommendation.

DP Eurasia, the largest pizza delivery firm in Turkey and the third biggest in Russia by number of stores, also said it expects its adjusted EBITDA to be in line with expectations.

Its system stores sales, comprising those from its corporate and franchised stores, rose to 859.8 million Turkish lira ($227.02 million) from 647.4 million lira.

The company, which debuted on the London Stock Exchange last year, reported 10 percent growth in like-for-like sales in Turkey and 28.9 percent in Russia driven by online orders.

The company, which opened its first store in 1996, beat expectations for store openings in Russia, where it added 49 and surpassed 100 stores last year, opening its first outlets outside Moscow.

“This momentum coupled with the full-year benefits of a number of initiatives supports a robust outlook (for 2018),” Liberum analysts said in a note.

DP Eurasia shares were up 1.8 percent at 231p in early trade in London.

$1 = 3.7874 lira Reporting by Anna Pruchnicka in Gdynia; editing by Jason Neely

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