Meituan Narrows Quarterly Operating Loss to 6.5 Billion Yuan as Beijing Cools Delivery Competition
Updated
Updated · Bloomberg · Jun 1
Meituan Narrows Quarterly Operating Loss to 6.5 Billion Yuan as Beijing Cools Delivery Competition
1 articles · Updated · Bloomberg · Jun 1
6.5 billion yuan was Meituan’s operating loss for the March quarter, improving from analysts’ roughly 9 billion yuan estimate as pressure on margins eased.
Repeated warnings from Beijing helped cool the food-delivery price war that had battered China’s online commerce sector and deepened losses.
91 billion yuan in revenue, up 5.6%, was broadly in line with projections, suggesting the earnings improvement came more from softer competition than from faster top-line growth.
The results indicate regulators’ efforts to rein in aggressive rivalry are starting to stabilize profitability in China’s delivery market.
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