China’s Meituan posted a better than expected 30.6% jump in Q4 revenue while posting higher losses in investment initiatives, according to a press release by Meituan on Friday.
- Meituan stated that revenue increased to 49.52 billion yuan ($7.78 billion) in the last three months of 2021. The consensus revenue estimate from analysts was 49.20 billion yuan.
- Meanwhile, the quarterly loss widened to 5.4 billion yuan from a loss of 2.24 billion yuan a year earlier, as Meituan continued to invest in programs, including its community e-commerce unit Meituan Select.
- Wang Xing CEO Meituan stated that the company anticipates its operating loss from new initiatives to narrow in 2022.
- Last year, Chinese regulators demanded food delivery companies to give their workers insurance and pay income above the minimum wage.
The results showed Meituan’s food delivery-related costs grew by 38.3% in the quarter to 68.18 billion yuan. Meituan down -8.16%