Just Eat has issued new full-year guidance on earnings – and investors are lapping it up.
Shares in the takeaway ordering firm rocketed more than seven per cent in early trading after upping its revenue forecasts for the year by £8m and earnings before interest, tax, depreciation and amortisation (Ebitda) by £4m, all thanks to an increase on its commission.
Revenue is expected to come in at £358m, up from £350m, and Ebitda is forecast at between £102m and £104m, up from previous estimates of £98m to £100m.
Just Eat increased the commission it takes on orders by one per cent in April.
Read more: Wanted: Chief takeaway tester
“We have had an excellent start to 2016," said chief executive David Buttress.
"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."
Orders were up 57 per cent in the first quarter and 41 per cent on a like-for-like basis, in line with growth in the same quarter last year. Orders in the UK continued to rise, up 40 per cent on a like-for-like basis, while its joint venture in Brazil, iFood, experienced order growth of 160 per cent.
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