OK Mobility, the global mobility platform, has focused its efforts this year on strengthening its balance sheet and expects to close the 2024 financial year with a turnover of more than €550 million, an EBITDA of around €60 million and a free cash flow of around €120 million. Even so, the company expects to close the year with a negative net result. The data were presented by OK Mobility CEO Othman Ktiri during the fifth edition of the OK Strategic & Financial Day, held at the Uría Menéndez Auditorium in Madrid. The company highlights the growth in its turnover, both in the Mobility Services division, which includes vehicle rental and subscription, and especially in the sale of pre-owned vehicles from its fleet.
With regard to the sale of its fleet, which the company carries out in more than 15 countries through its own distribution channels, OK Mobility will close the year with more than 25,000 cars sold, twice as many as in 2023. Even so, as expected by the company, losses are expected for the sales division since most of the sales made in 2024 correspond to vehicles purchased in 2022 and 2023 at exceptionally high prices due to the microchipcrisis. In this regard, the CEO of OK Mobility wanted to highlight that “instead of adopting the 'not sold-not lost' approach, we chose to be courageous, to take advantage of our great distribution and sales capacity, to clean up ourstock, to generate revenue andthus have a good treasury to buy new vehicles again in a context of normalised supply in which our business model has always been profitable.In fact, despite having a smaller share of this year's sales, we are already generating positive margins on all sales of vehicles purchased in 2024”.
As for the Mobility Services division, despite the slight drop in rental prices experienced by the leisure sector this year, OK Mobility expects to close 2024 with a higher turnover than the previous year. This growth has been achieved thanks to the increase in the number of bookings and rental days, the improvement in fleet occupancy levels, the diversification of its mobility revenues with subscription and renting aimed at residents, and an increase of more than 40 % in sales in its direct channels. In this regard, Ktiri wanted to highlight that “the power and potential of our brand never cease to surprise us. Our app has been downloaded more than half a million times and so far this year, more than 1,000 new users download it every day. Our brand is completely global when it comes to mobility services. Proof of this is the successfulsubscription for 3 to 9 months, some months withmore than 1.000 contracts, and the recent launch ofrenting for 12 to 60 months, with which, after only four months of activity, we have reached a rate of 100 monthly contracts. These subscription and renting contracts are in addition to ourmore than 100,000 monthly bookings for short-term rentals.”
The company's growth path has also materialised through diversifying its mobility services, including the launch of OK Renting and the inauguration of the Flagship Storeselling pre-owned vehicles to individualsthis year: “The Showroom by OK Mobility”.
In terms of geography, so far in 2024 the opening, with local franchisees, of new markets such as Bosnia, Dubai, Tunisia, Gambia and Senegal stands out. “I feel extremely proud to see howa Spanish brand that was born in Mallorca 20 years ago is now part of the landscape of 20 destinations worldwide,” says the company's CEO.
During the event, which brought together a hundred representatives of the national and international financial sector, Ktiri presented an EBITDA forecast of around €60 million at the end of 2024. This figure exceeds the €46 million obtained in 2023 and is significantly above the pre-COVID period levels.
However, the estimated net results would be negative due to unusually high amortisations due to the high value of vehicles purchased in 2022 and 2023 that are still on the balance sheet in 2024 and the high financial expense related to the associated interest rates. “The net result is impacted, mainly by the purchase prices of vehicles in 2022 and 2023 during the microchip crisis, which has had atriple negative impact onthis year's results: reduced margins in the sale of vehicles, unusually high amortisations and exceptionally high financial expenses for the same reasons,” explains Ktiri.
In this way, OK Mobility closes a year 2024 shaped by the transformation, consolidation and professionalisation of the business, supported by the globalisation of its brand and the digitalisation of its processes; which “demonstrates our company's commitment to innovationandcontinuous customer listening”, concludes Ktiri, who affirms that “we are optimistic for the future since we have achieved our main objective this year of generating significant positive cash flow as a prerequisite for consolidating profitability in the coming years, based on our know-how and the power of ourbrand”. In 2025, we will prioritise quality over quantity and our efforts will focus more on profitability than on turnover.”
