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Meituan Plunges 10% on Weak Earnings Report

Published 03/12/2019, 01:58 AM
Updated 03/12/2019, 01:58 AM
© Reuters.

Investing.com - Shares of the Hong Kong-listed food delivery giant Meituan (HK:3690) fell almost 10% on Tuesday in Asia after the company posted growing losses in the fourth quarter.

For the quarter ended Dec 31, net loss was 3.4 billion yuan, compared with the 2.2 billion yuan loss in the year-earlier period, according to an earnings report.

Annual revenue increased by 92.3% to 65.2 billion yuan. The fast revenue growth was offset by rising labor costs due to much higher order volumes, the company said.

As a result, the adjusted annual loss came in at 8.5 billion yuan, a 198.6% surge year-on-year.

Meituan is backed by technology giant Tencent Holdings. Shares of the company, which was listed on the stock market since last September, plunged 9.6% to HK$53.25 by 1:50 AM ET (05:50 GMT).

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