(Yicai Global) May 25 -- Meituan Dianping, China’s on-demand services giant, reported better-than-expected revenue for the first quarter.

Revenue fell 12.6 percent to CNY16.8 billion (USD2.4 billion) in the three months ended March 31 from a year earlier, the Beijing-based company said in an earnings report released today after the market closed. The market consensus was for CNY16.1 billion.

The coronavirus pandemic has caused severe disruptions since late January to the daily operations of its vendors, the firm said, adding that business segments such as food delivery and in-store, hotel and travel faced significant demand and supply challenges.

But the pandemic has also accelerated the development of consumer behavior, with the number of transacting users up 8.9 percent to 448.6 million on the same period last year.

“In the long run, we believe that this pandemic will help to better cultivate consumer habits, accelerate online penetration, improve the operational efficiencies of merchants, and ultimately expedite the digitization process of the entire local service industry,” said Chairman and Chief Executive Xing Wang.

Wider First-Quarter Loss

Meituan Dianping’s first-quarter operating loss widened to CNY1.7 billion from CNY1.3 billion from the same period last year, with an adjusted net loss of CNY216.3 million (USD30.3 million). It didn’t provide guidance for the current quarter and full year.

“Despite the obvious short-term disruptions, I would like to underscore that our long-term strategy and targets have not changed,” Xing said.

The company’s stock price [HKG:3690] rose almost 6.2 percent today to close at HKD125.8 (USD16.20). The benchmark Hang Seng Index was little changed.

Meituan Dianping’s operating loss from food deliveries stood at CNY70.9 million as revenue fell 11.4 percent to CNY9.5 billion. That was due to a decline in the frequency of purchases and a series of merchant-targeting commission rebates and exemptions. Income from commissions fell 13.7 percent to CNY8.6 billion.

The gross transaction volume for meal deliveries fell 5.4 percent to CNY71.5 billion. The daily average number of such transactions dropped 18.2 percent to 15.1 million, with an annual gain of 14.4 percent in the average value per order.

Revenues from the firm’s in-store, hotel and travel businesses slumped 31 percent to CNY3.1 billion as consumers scaled back on trips and other such activities, with operating profit down 57 percent to CNY680 million.

Revenues from new initiatives and others segment rose 4.9 percent to CNY4.2 billion on increased income from Meituan Shangou and the firm’s small loan business, with the operating loss widening to CNY1.4 billion.

Editor: Peter Thomas