GreenMobility: Announces new strategy update and changes its 2023 guidance after closing of Finland and the Netherlands

This morning, GreenMobility announced a new strategy update to achieve its ambition of becoming profitable in 2024. As a result, GreenMobility will invest substantially in the Danish market and only focus on profitable markets, implying that the company will either divest or close its markets in Finland and the Netherlands as soon as possible (Sweden and Germany were closed earlier this year). After this change, GreenMobility will only have cars in Denmark (Copenhagen and Aarhus) and Belgium. 

With the exit of GreenMobility’s main competitor, Share Now, from Copenhagen in November 2023, GreenMobility will relocate 300 cars from its international markets to Copenhagen where the revenue per car is significantly higher than in the international markets. As a result, GreenMobility expects to have more than 1,000 electric vehicles in Copenhagen. In total, the fleet size is expected to be approx. 1,400 electric shared vehicles in Denmark and Belgium.

Financially, the costs of closing Finland and the Netherlands will affect the result for 2023 negatively. Moreover, the closing of Finland and the Netherlands will be treated as discontinued operations in the 2023 annual report. This will have a material impact on its revenue and net result, implying that GreenMobility adjusts its 2023 revenue guidance range to DKK 93-98m (from the range DKK 120-130m) and 2023 net result guidance to the range DKK -35m to -25m (from the range DKK -42m to -32m). 

As mentioned in the H1 2023 report, GreenMobility will continue to assess possible solutions to strengthen its liquidity position. This includes solutions such as loans, credit lines or a capital raise.

The strategy update also implies that GreenMobility is postponing its international strategy and ambitions to focus on profitability in the short term. After this is achieved, the company will present an updated international growth plan.

Read the full announcement here: https://view.news.eu.nasdaq.com/view?id=bcf58739db7678d5ac312de522261d359&lang=en&src=listed

Tomorrow at 10:00, GreenMobility's CFO Anders Wall will present the strategy update in a virtual live event. Sign up at the following link and ask questions beforehand or during the event: https://hca.videosync.fi/2023-12-13-presentation/register

Dislclaimer: HC Andersen Capital receives payment for a Digital IR/Corporate Visibility subscription agreement. CEO of HC Andersen Capital, Tue Østergaard, owns shares and is the Chairman of the Board of GreenMobility A/S. /Kasper Lihn, 12:00, 12 December 2023.