Just Eat lifts profit forecast amid restaurant commission increase
Just Eat has upped its full-year profit guidance after increasing the amount it charges restaurants in the UK.
The company said full-year revenues are now expected to come in at £358 million, up from £350 million, and operating profit is forecast to be within the range of £102-104 million, up from previous guidance of £98-100 million.
A 1% increase in the commission rate for UK restaurants came into effect in early April, and Just Eat said " the initial response to these changes has been positive".
The firm also reported a 41% jump in like-for-like orders in its first quarter, taking 31.5 million overall in the period as the firm saw a boost from its international divisions.
A joint venture in South America with iFood saw orders grow 160% in Brazil.
Just Eat chief executive David Buttress said: "We have had an excellent start to 2016 and I am delighted with the company's performance and the momentum in the business. The team has continued to work hard to deliver increased value and ever more orders to our restaurant partners.
"Our focused strategy and improvements to both our consumer offering and restaurant support are working and we are well positioned to continue benefiting from channel shift in the category."