Meituan reports 11.8% rise in in-store, hotel & travel transaction value
03/11/2019|6:41:50 PM|Meituan

Meituan Dianping (Meituan) today announced its unaudited financial results for the year ended December 31, 2018.

Financial Performance Highlights

In the year ended December 31, 2018: 

• Total revenues increased by 92.3% year-over-year to RMB65.2 billion from RMB33.9 billion in 2017. We achieved strong revenue growth across all major business segments.

 • Total gross profit increased to RMB15.1 billion year-over-year from RMB12.2 billion in 2017. We continued to make gross margin improvement in the core businesses such as food delivery and in-store, hotel & travel. 

• Selling and marketing expenses as a percentage of total revenues decreased to 24.3% from 32.2% in 2017, attributable to economies of scale, the stronger brands and healthy operating leverage. 

• Negative adjusted EBITDA and adjusted net loss were RMB4.7 billion and RMB8.5 billion, respectively. 

Operating Highlights 

In the year ended December 31, 2018:

• Total Gross Transaction Volume (GTV) on the platform grew by 44.3% to RMB515.6 billion in 2018 from RMB357.2 billion in 2017. 

• Annual Transacting Users on the platform grew by 29.3% to 400.4 million in 2018 from 309.5 million in 2017. On average, the annual number of transactions each Transacting User made on the platform increased to 23.8 transactions in 2018 from 18.8 transactions in 2017. 

Business Highlights

In 2018, the food delivery business sustained its strong growth momentum. The daily average number of food delivery transactions increased by 56.3% to RMB17.5 million in 2018 from 11.2 million in 2017. GTV of the food delivery business increased by 65.3% to RMB282.8 billion in 2018 from RMB171.1 billion in 2017. Revenue from food delivery increased by 81.4% year over-year to RMB38.1 billion.

In-store, hotel & travel 

The GTV of in-store, hotel & travel businesses grew by 11.8% to RMB176.8 billion in 2018 from RMB158.1 billion in 2017, the monetization rate increased to 9.0% from 6.9%, which was primarily due to the increasing contribution of online marketing revenue. As a result, revenues from in-store, hotel & travel businesses in 2018 increased by 46.0% to RMB15.8 billion in 2018 from RMB10.9 billion in 2017. Gross profit from in-store, hotel & travel businesses increased to RMB14.1 billion in 2018 from RMB9.6 billion in 2017, while the gross margin expanded to 89.0% from 88.3%. Domestic room nights consumed increased by 38.5% to 283.9 million in 2018 from 205.0 million in 2017, while average daily rate per room night experienced a steady increase year-over-year.

New initiatives and others

GTV from the new initiatives and others segment increased by 99.8% to RMB56.0 billion in 2018 from RMB28.0 billion in 2017. Revenues from the new initiatives and others segment increased by 450.3% to RMB11.2 billion in 2018 from RMB2.0 billion in 2017. Gross margin of the new initiatives and others segment was negative 37.9% in 2018, compared with positive 46.0% in 2017.

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