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Bloomberg
Meituan Dianping reported a smaller slide in revenue than analysts projected after the Chinese internet services giant proved resilient to virus-induced lockdowns.
Sales fell 12.6% to 16.8 billion yuan ($2.4 billion) in the three months ended March, compared with the 15.6 billion yuan average of analysts’ estimates. It reported net loss of 1.58 billion yuan, while analysts projected a 1.79 billion-yuan loss.
Shares of Meituan rose 6% in Hong Kong before earnings were announced. It’s gained roughly $40 billion in market value since China began to return to normal in mid-March.
Backed by Tencent Holdings Ltd, Meituan’s sprawling services from food delivery to in-store dining and hotel booking were among the most vulnerable during China’s Covid-19 shutdowns. While it’s expanding offerings to sell things like handsets and farm produce, rivals including Ant Financial and SF Express, both backed by Alibaba Group Holding Ltd, are elbowing their way into Meituan’s core takeout business. Alibaba’s food-delivery arm Ele.me is also engaging in a subsidy battle with the startup for market leadership.
Longer term, Meituan will also have to grapple with China’s worsening economy, which may further dent consumer spending.