BEIJING (Reuters) -Chinese food delivery giant Meituan reported on Friday better than expected quarterly revenue growth of 28.2% as the company recovered from COVID-19 curbs.
Meituan, whose services also include restaurant reviews and bike-sharing, said total revenue rose to 62.62 billion yuan ($8.74 billion) in the three months ended September, compared with analysts’ average estimate of 61.79 billion yuan, according to Refinitiv data.
The company swung to a quarterly profit of 1.22 billion yuan from a loss of 9.99 billion yuan a year earlier, as it pulled the brakes on heavily funding its new initiatives.
Sales from new initiatives, including its community e-commerce business Meituan Select, grew by 39.7% year on year to 16.29 billion yuan.
Revenue from core local commerce, which includes food delivery and in-store, hotel and travel businesses, rose 24.6% to 46.33 billion yuan.
($1 = 7.1615 Chinese yuan renminbi)
(Reporting by Yingzhi Yang and Brenda GohEditing by Mark Potter)