Deliveroo Earnings: Good Performance and New Buyback on Profitability Milestone Signals Confidence

Deliveroo released its interim results, which included gross transaction value up 6% in constant currency (5% in reported currency), broadly in line with company-compiled consensus. Order growth was up 2% for the group, driven by the international segment (up 3%), with the UK and Ireland up 1%. In the latter region, GTV at reporting currency was up 7%. This compares with 9% GTV growth (reported currency) and flat order growth for Just Eat Takeaway in the UK and Ireland in the first quarter, implying incremental value market share losses for Deliveroo in the period. In international, GTV growth was 5% in constant currency (6% in reported currency), with a mild sequential decline from 6% in the first quarter of 2024 to 5% in the second quarter (at constant currency). Good performance was driven by France, United Arab Emirates, and Italy. Hong Kong was a laggard among major markets in the first half due to tougher competition. Revenue growth came in lower than GTV growth, implying decreasing take rates, a function of Deliveroo's investments in the customer value proposition.