BERLIN (dpa-AFX) - Delivery Hero SE (DHER.DE) increases its provisions for legal risks as of December 31, 2024, following the receipt of a first instance Italian court decision relating to the legal status of delivery riders by Delivery Hero's Italian subsidiary Glovo operating food delivery business under the Glovo brand in Italy.
The Management Board has resolved to increase the provisions by 183 million euros non-cash expenses to cover social security contributions, interests and fines that Italian authorities may claim for the period from 2016 until the end of 2024 for Glovo in Italy. This results in a provision for legal risks related to this reclassification of Glovo's rider fleet in Italy in the amount of 253 million euros to be reflected in the company's 2024 consolidated financial statements.
The increased expenses attributable to fiscal year 2024 are reflected in the adjusted EBITDA in fiscal year 2024. The increased expenses attributable to prior periods are normalized as part of the management adjustments.
The previously disclosed adjusted EBITDA of around 750 million euros for fiscal year 2024 is now expected to amount to 693 million euros. Delivery Hero confirms all other preliminary results for the fiscal year 2024.
Delivery Hero also confirms the previously provided guidance for fiscal year 2025 remains unchanged.
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