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Meituan posts an operating loss of RMB 3.3 million for second quarter

08/30/2021| 5:11:59 PM|

Meituan claims that its food delivery and in-store, hotel & travel segments maintained high growth during the quarter.

Meituan said its revenues increased by 77% in the second quarter of 2021 to RMB43.8 billion from RMB24.7 billion for the same period of 2020. Food delivery and in-store, hotel & travel segments maintained high growth during the quarter, realizing an aggregate operating profit by segment of RMB6.1 billion in the second quarter of 2021, an increase from RMB3.1 billion for the same period of 2020.

Operating loss for the new initiatives and other segments widened as Meituan continues to invest in areas that will bring long-term value to the Company and provide consumers and Meituan’s merchants with better products and services.

Meituan had cash and cash equivalents of RMB71.4 billion and short-term treasury investments of RMB51.1 billion as of June 30, 2021, compared to the balances of RMB17.8 billion and RMB35.3 billion as of March 31, 2021, respectively. 

In-store, hotel & travel

Meituan’s in-store, hotel & travel segment continued to post steady growth, with revenue growing by 89.3% year-over-year to RMB8.6 billion in the second quarter of 2021. Operating profit increased 93.7% to RMB3.7 billion in the second quarter of 2021 from RMB1.9 billion in the same period of 2020, and with operating margin increasing to 42.6% from 41.6%.

For hotel booking, demand for travel continued to rise compared to the previous quarter. Domestic room nights surpassed 140 million for the second quarter of 2021, representing a stellar 81% year-over-year growth, and a two-year CAGR of 22% from the same period of 2019. For high-star hotels, the company continued to increase platform supply to meet the changing demand from consumers, and further strengthened service quality and operational capabilities. For low star hotels, Meituan continued to penetrate further into lower-tier markets, through the accelerated digitization process and offline traffic conversion.

In April this year, China's market regulator State Administration for Market Regulation (SAMR) commenced an investigation on Meituan according to the Anti-Monopoly Law. So far the investigation is ongoing and the company said it is actively cooperating with SAMR. Meituan said the company could be required to make changes to its business practices and may be subject to a significant amount of fines. 

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TAGS: Meituan | financial results
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