35 new European cities have pre-approved GreenMobility

The concept is in-line with cities’ green political agenda

Our estimates include 5 unannounced cities by ‘22e

GreenMobility says 35 cities have pre-approved the concept
GreenMobility released a press statement today that 35 European cities have given pre-approval for GreenMobility to operate in their city. According to the company, many of the cities have also announced plans for subsidy grants and other initiatives to expand Co2-friendly urban mobility in their cities. In its 2018 annual report, GreenMobility said that they had identified 60 cities based on population size, density and green agenda to operate in. The company said then that 15 cities were in the scope which they hoped to operate in before end-2021. Since then, the company has decided to operate in more (but smaller) cities with fewer cars, however we remain to have the original 2021 targets in our financial estimates. We believe this announcement will be operationalized after 2021, where we have not received enough insight to be included in our estimates yet.

We continue to expect launch of 5 unannounced cities by ‘22
In our 2021/22e estimates, we continue to have 15 operational cities included, where Copenhagen, Oslo, Århus, Malmø, Gothenburg, Helsinki, Wien, Antwerp and Brussels will operate during 2020 and Gent along with 5 unannounced cities (prev. 3 UK cities) during 2021. As a result, we reiterate our sales estimates for 2020-22e of DKK 38m, DKK 100m and DKK 110m with EBIT of DKK -46m, DKK -8m and -20m, respectively. The company aims for a share emission during H2’20e where we include DKK 50m in our estimates, however given the strong price performance (1M: +38%), this could be DKK 80-100m (~30%).

research@abgsc.com (Introduce.se)

ABG Sundal Collier - Introduce.se