Just Eat has slashed its marketing spend by 20% in a year, from £628m in 2022 to £503m in 2023.
The news comes as the company looks to reposition its advertising portfolio after losing its headline sponsorship deal with reality show Love Island.
In the first half of the year alone, the firm cut its marketing spend by 28%, equating to a reduction of over £250m.
In an update, the delivery group said its revenue in North America performed the worst, with revenue dropping to £4.417m from £4.418m, while UK and Ireland revenues dipped slightly, from £1.319m to £1.312m.
GTV (gross transaction value) was also down by 4% on constant currency, across the group including North America.
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CEO Jitse Groen said: “Our enhanced profitability resulted in reaching the critical milestone of returning to positive free cash flow in the second half of 2023. I am particularly pleased with the strong momentum in UK and Ireland, with adjusted EBITDA margin rapidly approaching a similarly high level as Northern Europe.”
“Overall, the business is in a strong position to capture further improvement to our topline performance, adjusted EBITDA and free cash flow in 2024.”
Earlier this month, Just Eat extended its partnership with UEFA Champions League and UEFA Conference League until 2027.
In a McCann London led campaign last year, Just Eat enlisted Christina Aguilera to build on its ‘Did Somebody Say Just Eat’ concept, following on from its enlisting of Snoop Dogg and Katy Perry.
