Meituan reports 42.8% rise in in-store, hotel & travel businesses revenue in Q2
08/23/2019|6:39:29 PM|Meituan

Meituan Dianping today announce the unaudited consolidated results of the Company for the three and six months ended June 30, 2019. 

Financial Performance Highlights

In the three months ended June 30, 2019:

• Total revenues increased by 50.6% year-over-year to RMB22.7 billion from RMB15.1 billion in the same period of 2018 and increased by 18.4% quarter-over-quarter from RMB19.2 billion in the three months ended March 31, 2019, benefiting from strong revenue growth across all major business segments.

• Total gross profit increased by 179.5% year-over-year to RMB7.9 billion from RMB2.8 billion in the same period of 2018 and increased by 56.6% quarter-over-quarter from RMB5.1 billion in the three months ended March 31, 2019, resulting from growth in the business scale, continuous improvement of the gross margin in food delivery, and narrowing losses in the new businesses.

• Selling and marketing expenses as a percentage of total revenues decreased to 18.3% from 25.7% in the same period of 2018 and 19.3% in the three months ended March 31, 2019, as Meituan further enhanced operating leverage across all of the business segments and optimized branding and marketing spending.

• Adjusted EBITDA and adjusted net profit were RMB2.3 billion and RMB1.5 billion, respectively. Following a positive adjusted EBITDA in the three months ended March 31, 2019, Meituan achieved both positive adjusted net profit on a consolidated basis and positive adjusted operating profit in the food delivery segment in the three months ended June

30, 2019, attributable to the ongoing efforts to improve the operating margin of the core businesses, narrower operating losses in the new initiatives and seasonality.

Operating Highlights In the three months ended June 30, 2019:

• Total Gross Transaction Volume (GTV) on the platform grew by 28.7% to RMB159.2 billion from RMB123.7 billion in the same period of 2018.

• Annual Transacting Users on the platform in the last twelve months ended June 30, 2019 grew by 18.4% to 422.6 million from 356.9 million in the last twelve months ended June 30, 2018.

• Average number of transactions per annual Transacting User on the platform increased to 25.5 transactions in the twelve months ended June 30, 2019 from 21.4 transactions in the twelve months ended June 30, 2018.

• Annual Active Merchants on the platform grew by 16.2% to 5.9 million in the twelve months ended June 30, 2019 from 5.1 million in the twelve months ended June 30, 2018.

• Overall monetization rate increased to 14.3% in the three months ended June 30, 2019 from 12.2% in the same period of 2018.

In-store, hotel & travel

GTV of the in-store, hotel & travel businesses grew by 20.7% to RMB51.3 billion in the three months ended June 30, 2019 from RMB42.5 billion in the same period of 2018, and the monetization rate increased to 10.2% from 8.6%. Revenues from the in-store, hotel & travel businesses increased by 42.8% to RMB5.2 billion in the three months ended June 30, 2019 from RMB3.7 billion in the same period of 2018. Gross profit from the in-store, hotel & travel businesses increased to RMB4.7 billion in the three months ended June 30, 2019 from RMB3.3 billion in the same period of 2018, while the gross margin slightly declined to 88.8% from 90.8%.

In the three months ended June 30, 2019, the number of active marketing merchants in this segment grew by more than 50% year-over-year, and the average revenue per active marketing merchant continued to grow steadily.

Domestic room nights consumed increased by 28.9% to 94.0 million in the three months ended June 30, 2019 from 72.9 million in the same period of 2018, and the average daily rate per room night experienced a steady year-over-year increase. Furthermore, Meituan launched the “Hotel+X” campaign in April 2019 to stimulate the growth of the high-end hotel booking business and help high-end hotels to promote their non-lodging services, such as restaurants, wedding venues, spa and gyms, thereby further substantiating their revenue streams. As a result, the contribution from high-end hotels further increased year-over-year in the three months ended June 30, 2019.

New initiatives and others

Revenues from the new initiatives and others segment increased by 85.1% to RMB4.6 billion in the three months ended June 30, 2019 from RMB2.5 billion in the same period of 2018. Gross profit of the new initiatives and others segment was 421.1 million in the three months ended June 30, 2019, turning from negative to positive. Gross margin was 9.1% in the three months ended June 30, 2019, improving from negative 76.4% in the same period of 2018.

• Bike sharing: Operating losses for the three months ended June 30, 2019 narrowed significantly from that for the three months ended March 31, 2019.

• Car-hailing: By June 30, 2019, Meituan had rolled out the new aggregated model in a total of 42 cities, including Beijing, Shanghai, Shenzhen, Guangzhou, Hangzhou, Nanjing and Chengdu.

Revenues

Revenues increased by 50.6% to RMB22.7 billion in the three months ended June 30, 2019

from RMB15.1 billion in the same period of 2018.

Revenues from the in-store, hotel & travel segment increased by 42.8% to RMB5.2 billion in the three months ended June 30, 2019 from RMB3.7 billion in the same period of 2018

Revenues from the new initiatives and others segment increased by 85.1% to RMB4.6 billion in the three months ended June 30, 2019 from RMB2.5 billion in the same period of 2018, primarily due to the increases in the revenues from the food distribution business, micro loan, and Meituan Instashopping. 

Commission revenue increased by 39.2% to RMB15.4 billion in the three months ended June 30, 2019 from RMB11.1 billion in the same period of 2018.

Online marketing services revenue increased by 73.0% to RMB3.6 billion in the three months ended June 30, 2019 from RMB2.1 billion in the same period of 2018, primarily due to the increase in the number of online marketing Active Merchants and the increase in the average revenue per online marketing Active Merchant from the in-store, hotel & travel businesses and food delivery business.

Other services and sales revenue increased by 92.6% to RMB3.6 billion in the three months ended June 30, 2019 from RMB1.9 billion in the same period of 2018.

Cost of revenues increased by 20.7% to RMB14.8 billion in the three months ended June 30, 2019 from RMB12.2 billion in the same period of 2018. 

Cost of revenues for in-store, hotel & travel businesses increased by 73.0% to RMB586.0 million in the three months ended June 30, 2019 from RMB338.7 million in the same period of 2018.

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