Upward adjustment of 2023 guidance

Company Announcement no. 23-2023
*Contains insider information*

Donkey Republic raises 2023 guidance for revenue and increases upper levels for EBITDA and EBIT. The upward adjustment is driven by a higher than anticipated demand and fleet utilization during the summer months coupled with the ability to keep costs levels stable.

Guidance is adjusted as follows:

• Revenue: Raised to 112-120M DKK from 97-112M DKK (15-16M EUR from 13-15M EUR)
• EBITDA: Raised to 9-13.5M DKK from 9-10.5M DKK (1.2-1.8M EUR from 1.2-1.4M EUR)
• EBIT: Raised to negative 11-6.5M DKK from negative 12-9.5M DKK (negative 1.5-0.9M EUR from negative 1.6-1.3M EUR)

After the publication of the financial report for H1-2023, the following underlying assumptions have developed in a positive direction: 

Higher than expected performance on rider revenue over the summer months 

• Donkey Republic experienced higher than expected user demand and fleet utilization during the high season which positively impacted rider revenue. The strong performance can be attributed to strategic operational changes such as better placement of fleet and improved rebalancing as well as successful commercial activities to improve membership adoption and price structures. 

Stable cost levels despite significant revenue increase

• Despite the significant revenue increase, Donkey Republic was able to keep operational cost at a stable level, which is testament to the execution of the strategy which is built on increasing efficiencies to grow at sustainable margins. Keeping operational cost levels stable despite the significant revenue increase, resulted in a positive impact on contribution margin, which gives the opportunity to invest further into growth.  

Roll out of the fleet 

• As was communicated in connection with the H1-2023 report, ongoing market driven delays in the deal cycle, especially in regards to the periods prior to awarding contracts have led to lower fleet depreciation than originally planned.

Fulfillment of the guidance for 2023 depends on the remaining key drivers and assumptions put forth in the 2022 Annual Report.

Forward-looking statements
Statements about the future reflect Donkey Republic’s current expectations for future events and financial results. The nature of these statements is affected by risk and uncertainties. Therefore, the company’s actual results may differ from the expectations expressed in this company announcement.