Meituan Dianping, China’s online, on-demand service specialist, reported its second consecutive quarterly profit Thursday. Earnings rose sharply from the previous period on steady improvement in its bike-sharing and food-delivery units, which are still believed to be losing money.
Meituan reported a net profit of 1.3 billion yuan ($185 million) for the third quarter, compared with a loss of 83.3 billion yuan in the same period the previous year. The company posted its first-ever quarterly profit of 875.8 million yuan in the second quarter this year.
Meituan is China’s third-most valuable company behind technology giants Alibaba Group Holding Ltd. and Tencent Holdings. In the year since its blockbuster Hong Kong listing, the company has largely halted expansion of its less-profitable transportation sector.
Revenue rose 44% to 27.5 billion yuan in the three months ended September, beating analysts’ expectations from research firm Jefferies Financial Group.
The food-delivery business, which contributed more than half of the company’s total revenue, booked gross profit of 3 billion yuan, representing an increase of 64.5% from the previous year. The number of food delivery orders increased 38.1% to 2.5 billion during the period. But Meituan didn’t disclose a net profit for the business sector.
The company reported gross profit of 1.1 billion yuan from the category of “new initiatives and others,” compared with losses of 1.3 billion yuan in the same period last year, partly due to “significant reduction in depreciation” of its sharing bikes, the company said in its earnings report.
Contact reporter Tang Ziyi (firstname.lastname@example.org)