Meituan said its first-quarter net loss widened despite higher revenue, as continued investment in new businesses weighed on its bottom line.
The Chinese food-delivery giant
posted a net loss of 5.70 billion yuan (US$852.5 million), compared with a loss of CNY4.85 billion a year earlier.
Revenue rose 25% to CNY46.27 billion, driven by the steady growth of its main food delivery business and a 47% jump in revenue from new initiatives, which include grocery delivery and group-purchase operations.
While revenue grew, losses widened as Meituan’s marketing expenses, research and development spending rose to a higher percentage of total revenue, weighing on profitability.
The cost increase was in part driven by Meituan’s continued investment in its new businesses. The company said it expects the segment to remain a “key investment area.”
Write to Yifan Wang at firstname.lastname@example.org