Business news in brief
Turnaround for Just Eat after losses of £310m
Just Eat has said it returned to underlying earnings last year and expects to remain profitable in 2023 despite seeing a drop in orders as customers cut back. The Amsterdam-based group swung to underlying earnings of €19ms (£16.7m) last year from losses of €350m in 2021 thanks largely to cost-cutting. In the UK and Ireland, it saw earnings of €23m from losses of €107m the previous year. Order numbers tumbled 9 per cent to 984 million, with the past six months affected in particular amid a consumer spending pullback and an ongoing slowdown in the
online food sector as growth eases back after a pandemic-driven boom in demand.
The group said it expects to remain profitable in 2023, with earnings of around €225m but said growth will be skewed towards the end of the year given the recent decline in orders, while it is also expecting pressures from wage costs and an uncertain economic backdrop. Order numbers were dragged lower by a 13 per cent fall at its beleaguered US division, Grubhub. PA
Green light for £5.4bn satellite firm’s US takeover
The £5.4bn takeover of UK satellite giant Inmarsat by US rival Viasat has been given the provisional green light by Britain’s competition watchdog as it said the merged firm would be “challenged” in the rapidly expanding sector. The Competition and Markets Authority (CMA) said that while the companies compete closely in the aviation sector – specifically in the supply of satellite connections for onboard wifi – the deal does not substantially reduce competition for services provided on flights used by UK customers.
The CMA said the merged company will likely face “significant competition” from both emerging and established players as the sector expands. The satellite sector has seen a wave of investment and acquisition activity in recent years as ventures backed by Elon Musk and Amazon have pushed forward in the race to build a constellation of low-orbit satellites. PA
Revolut in the black for first time
Banking app Revolut has hailed its first profitable year after benefiting from a post-pandemic digital boom and a growth in crypto trading. The company – Britain’s most valuable fintech – published its much-delayed annual report for 2021 on Tuesday, after being criticised for filing its accounts late. But the firm brushed aside the delays and cheered its first full year of
profitability, with a net profit of £26.3m, up from the £223.6m in steep losses it posted the previous year.
Revolut said its financial performance was strengthened by seeing an increase of more than 50 per cent in weekly active retail customers, and an increase in the average spend per user by a tenth. Revolut makes money from products such as transfers and multi-currency cards, paid plans that go up to £12.99 a month for a “metal” card, and crypto assets. PA
Content site OnlyFans loses tax case
OnlyFans should pay UK VAT on the full amount paid by subscribers to content creators, not only its 20 per cent cut of the fees, Europe’s top court has ruled. Founded in 2016 and with more than 150 million users, the adult content platform’s popularity soared as creators look to earn money by selling directly to subscribers.
OnlyFans operator Fenix clashed with UK tax authorities after they ordered it to pay VAT on all the money paid by fans between 2017 and 2020, not just the 20 per cent it took from creators for services such as collecting and distributing fees. The company took its pre-Brexit grievance to the Court of Justice of the European Union but lost. Reuters
Want your views to be included in The Independent Daily Edition letters page? Email us by tapping here email@example.com. Please include your address
BACK TO TOP