Meituan Dianping Q2 Revenue Surges 8.9% to $3.58B, Beats Estimates

meituan-dianping-q2
(Source: Lu Zhao/Pandaily)

Meituan Dianping on Friday reported a revenue of 24.72 billion yuan ($3.57 billion) in the second quarter of 2020, up 8.9% year over year and 47.6% quarter over quarter, surpassing the 23.48 billion yuan average estimates from 16 analysts, according to Refinitiv data.

The company said its adjusted profit for the period increased by 82% from the same time last year to 2.7 billion.

SEE ALSO: Meituan App No Longer Supports Alipay

“Although we continue to see impacts from the outbreak of COVID-19 in the second quarter, our business demonstrated resilience and recovered at a good pace,” said Wang Xing, chairman and CEO of Meituan Dianping. “During this quarter, we helped our merchants weather the storm, which created value for our vast community of consumers and merchants. And as a result, we stimulated the progressive recovery of the local service industry from the pandemic.”

The Beijing-based company provides local services ranging from food delivery to hotel booking and other services. Meituan Dianping earned more than half of its revenue in Q2 from food delivery.

“We further boosted the competitive advantage of our core businesses, while enhancing our ecosystem during our business recovery process,” Wang said. “In the second quarter, we utilized advanced digital operation tools to enable more merchants to enhance our on-demand delivery infrastructure, to facilitate the digital lifestyles of consumers and to accelerate the online penetration and digitization of essential local services on both the demand and supply side.”

The company said its annual active merchants increased to 6.3 million in the second quarter, up 6.7% year on year.