Danish micromobility operator Donkey Republic has recorded a positive lift on all its performance indicators, according to its 2024 H1 financial report.
Compared with 2023 H1, the operator recorded a 75% increase in EBITDA, a 17% increase in total revenue, as well as a 25% increase in trips taken.
Donkey Republic – which today celebrates its 10-year anniversary – also announced a 10% increase in monthly revenue per bike, 24% increase in riders, and 7% increase in fleet size.
“Our unique blend of rider-revenue and B2G models sets us apart and fuels our success,” Donkey Republic Chief Financial Officer Christian Dufft told Zag Daily. “Having rider revenue-driven operations and subsidised operations allows us to have the best from both worlds. We can apply cost-efficient operations and a rider-friendly app to better service subsidised operations, and at the same time we apply our focus on good relationships with cities and its citizens to all our cities.”
In Q2 2024, Donkey Republic rolled out its services in the German city of Hannover commencing the long-term B2G contract it was awarded last year. It also completed a capital raise earlier this year in April.
The operator claims its positive cashflow enabled it to initiate early debt repayment and conclude the debt restructuring agreed with its main lenders in 2023 H1. It could then invest the additional capital raised into fleet expansion, with the deployment of bikes scheduled for early 2025.
“Positive cashflow is the result of our business model. We have a strong focus on profitable growth, that does not stop with EBITDA but is focused on also generating a positive cash flow. This comprises proper cost management that does not put revenue generation at risk and efficient networking capital management. You can say that we do not just make every ride count but also make every Euro that we have, count.”
The operator says the 3.5 million trips taken on its services in 2024 H1 corresponds to a total reduction of approximately 1.4 million trips taken by car, bus, and train, DKK 30.6 million (€4.1 million) on health benefits, and 172 tons of CO2 saved.
While Donkey Republic’s EBITDA of DKK 2.8 million (€375,000) and total revenue of DKK 59.8 million (€8 million) in 2024 H1 surpassed its 2023 H1’s levels, they were lower than 2023 H2 levels which were DKK 7.9 million (€1 million) and DKK 64.2 million (€8.6 million) respectively.
Christian told Zag this is because historically the operator generates 60% of its annual revenue in the second half of the year.
“The reason is that we are well positioned in several tourist hot spots across Europe like Copenhagen, Barcelona, and Amsterdam, to fully utilise the summer vacation period and that the second half in general is warmer than the first half.
“Even though we are less dependent on weather with our increasing share of B2G/ B2B revenue, good weather is still an important factor for us.”
Donkey Republic marked its milestone anniversary and financial progress with a celebratory parade in the streets of Copenhagen today.
