GreenMobility - ABGSC’s DK small/mid cap seminar feedback
Despite profit in CPH, usage is low vs. objectives B2B and partnerships to increase off-peak sales Limited seasonality effect expected this year, as in ‘20 Usage/prices must increase to reach revenue objectives GreenMobility delivered a positive EBT result for Copenhagen in August, and guides for a full-year positive result for 2021e. In August, revenue/car in Copenhagen was 7. 3k vs.
cost/car of 6. 7k. This equated to DKK ~240/day vs.
the company’s overall goal of DKK 300/day. Similarly, Århus delivered around DKK 150/day during Q4'20. The current fixed daily rate is DKK 495, and as such, there is significant potential for the firm to boost the usage and effectiveness of its fleet.
As a result, new partnerships are being launched (e. g. with food delivery service Wolt during off-peak hours) alongside B2B partnerships to increase usage.
At today's seminar, GreenMobility IR said the company intends to engage in similar initiatives when entering new cities. Limited seasonality expected in 2021 for Copenhagen Overall, customer satisfaction is generally high following the new platform initiated in H2'19; the platform has also lowered the amount of manual assignments, reducing staff costs. Due to travel restrictions, there was high demand for domestic long-distance trips (+10km).
GreenMobility does not operate install charging stations/electrical grids, but recognizes the needs for more stations in e. g. vacation areas of Denmark.
This is a topic of concern, and the company is pressuring local municipalities to increase the availability of such infrastructure. As such, we see a likelihood of limited seasonality for summer ’21 in Denmark, and a market in line with operations for 2020.
