Delivery Hero Se Unsp/Adr

Ladies and gentlemen, welcome to the Delivery Hero Q2 2024 Trading Update Conference Call. I am George, the Callers Call Operator. I would like to remind you that all participants will be listed only more than the conference has been recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and 1 on your telephone. For operator assistance, please press star and 0. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Christoph Bast, Head of Investor Relations. Please go ahead.

Hello and welcome everyone. Thank you very much for joining our Q2 2024 earnings call. We would like to remind you that this call is being webcast and the replay will be available later today on our website. With me today we have Niklas Oestberg, CEO and Marianne Popp, Interim CFO of Delivery Hero. who will take us through the most relevant aspects of true performance and also the half-year financial statements. After that, we look forward to answering your questions. And now, let me hand it over to you, Niklas. Thanks, Christoph.

Hey, everyone, and thanks for listening in. Today, I'd like to start off by sharing my gratitude to the full Delivery Hero team. Last six months, many of us, including myself, have been working incredibly hard. And as you can remember, we had a great Q1 where we outgrew our competitors in almost every market. But as we highlighted in our last trading update, we had a significant drop in category share in Korea at the end of Q1, starting Q2. This led us to not only accelerate our plans in Korea, but also compensate for the impact by finding growth and cost levers in other places. We came together and delivered incredibly well on this. So a big thanks, everyone, for this enormous effort. We ended the quarter with growth levels not seen since COVID time in 2022. And we did this while growing EBITDA and cash flows rapidly. I also like to thank Marianne for stepping into the interim C4 role. You have pushed efficiencies as our first priority. It's not been easy, but I have appreciate the challenge and I'm sure many of the actions we are taking will make us even stronger. So thank you for that. Moving to some highlights for Q2. So despite this tough start to the quarter, We delivered 7% year-on-year growth in constant currency GMV. We ended the quarter on a strong note, achieving a 10% increase in GMV in June. The positive momentum was driven by healthy order growth, which has been in the double digits across our markets outside of Asia, where GMV has grown in aggregate by 23% year-on-year this quarter. This is ahead of all public peers, and it shows the strength of our team and our product. Total segment revenues continue to significantly outgrow GMV with a 200% year-on-year increase in the quarter, driven by multiple levers, including higher commissions around delivery, DMARs, ad tech, as well as services and subscription fees. I'm also very pleased to say that We not only delivered solid top line growth, but that the majority of our footprint saw improved profitability over the last six months, leading to a strong year-on-year uplift in adjusted EBITDA of 231 million euros. I'd like to single out that in June, Dovo achieved positive ideas EBITDA, including group cost for the first time. The team is on fire and we are outscoring our competitors big time. We expect Glovo to continue improving its adjusted EBITDA in the coming quarters. Due to the strong revenue growth in combination with the strict focus on profitability, we concluded H1 with an adjusted EBITDA of €240 million, resulting in a positive operating cash flow of €103 million and the break-even on free cash flow level. Our liquidity position remains strong, and at the end of H1, we had €1.8 billion in cash and cash equivalents. You've likely seen our recent corporate news. We are preparing an IPO of Talabat in Q4. Our team is working diligently to make this happen, which will help us strengthen our local relationships and position Talabat for a long-term success in the MENA region. Last but not least, I'm sure you have seen our announcement regarding a potential listing in Talabat. I think that was already mentioned now. But also to share here is, of course, the Taliban is an incredibly strong business and has a very impressive track record of combining highly attractive growth with industry-leading margins. We believe it is in our best interest of Taliban to pursue minority listing as a logical next step and position Taliban for the long-term success in partnership with strong regional investors. This announcement is not the subject of the matter of today's call. Please understand that we cannot make detailed comments or answers to the question today. Delivery Hero will publish further information as part of the IPO process at the latest stage. However, in line with best practice, we have prepared a case study that highlights the financial performance of Palabas business. Now on to the next slide. So both GMV and revenue continue their positive development as we generate double digit order growth in most of our segments. We continue to grow the business while delivering substantial profit and cash flow improvements. If you take a look at slide Five, you can get a very good understanding of where our growth is coming from. During the quarter, four out of five segments were generating strong double-digit revenue growth in constant currency and excluding hyperinflation accounting, with MENA even growing above 30%. Now let me hand over to Marianne, who will then give a deep dive into the financials Starting on the next slide, Marianne.