* Company to invest additional 50 mln stg in 2018
* Will expand delivery services
* 2017 results slightly ahead of expectations
* Shares down more than 7 pct (Adds CEO comments, analyst reaction, shares)
By Paul Sandle and Elizabeth Burden
LONDON, March 6 (Reuters) - British takeaway platform JustEat JE.L will spend an extra 50 million pounds ($69 million)this year to battle competition from rivals such as Deliverooand Uber Eats, its new CEO said on Tuesday, sending its shareprice sharply lower.
Peter Plumb, who joined Just Eat in September, said thecompany needed to address intensifying competition.
"There is a large and complementary opportunity to offerdelivery services to certain markets," he told reporters afterthe company reported full-year results.
"And at the same time we will develop our apps, brands andthe technology we will provide (to) restaurants to further growour core marketplace by increasing awareness of the brand andimproving the customer experience."
Just Eat's platform connects customers with local takeawayrestaurants, which generally provide their own delivery service,unlike competitors Deliveroo and Uber Eats.
Plumb said that the increased investment would mainly gotowards extending Just Eat's own delivery services. It alsoplans to work with more branded restaurants after trials withSubway, KFC and Burger King last year.
The level of investment, however, was far above marketexpectations and shares in Just Eat fell 11 percent in earlytrading. By 1042 GMT the shares were down 7.4 percent at 788pence, still the biggest faller on the FTSE 100 index.
'REALITY CHECK'
Northern Trust (NASDAQ:NTRS) Capital Markets analyst Ameet Patel said theJust Eat had effectively signalled "a material shift in businessmodel from one that's marketplace-focused to one that needs tofocus on deliveries".
"We think today's update is a reality check that brings anabrupt end to earnings and rating momentum for now at least,"Patel said.
Just Eat, the shares of which had risen more than 70 percentover the past year, reported 2017 revenue and core earningsabove its guidance.
It posted a 45 percent rise in revenue to 546 million poundsand 42 percent increase in underlying core earnings to 164million pounds for 2017, both ahead of expectations.
Its UK operations performed strongly, it said, processinghalf a million orders on the evening of the final of TV talentshow The X Factor in December, which it sponsored.
Just Eat, which has grown rapidly in recent years to enterthe FTSE 100, said the extra investment would also support itsgrowth in Canada, Australia and New Zealand, as well asdeveloping markets.
For 2018 it forecast underlying core earnings of between 165million pounds and 185 million pounds. The market had expected afigure of 226 million pounds. ($1 = 0.7220 pounds) (Editing by Kate Holton and David Goodman)