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Upward adjustment of 2023 guidance

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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.

CONTACT INFORMATION
DonkeyRepublic Holding A/S
Skelbækgade 4, trappe B, 4. sal.
1717 København V
www.invest.donkey.bike

Niels Henrik Rasmussen, CEO
investor@donkeyrepublic.com

Certified Adviser
Grant Thornton, Jesper Skaarup Vestergaard
Direct (+45) 35 27 50 11

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https://invest.donkey.bike/donkey-republic-company-news/

About Donkey Republic
Founded in 2014, Donkey Republic is a Danish purpose driven impact company active in the micro mobility industry. Donkey Republic provides a flexible, affordable and more sustainable way of transportation to the citizens by partnering with the cities. 

Donkey Republic is a data driven technology company facilitating bike sharing, and we are able to provide cities and citizens a reliable bike sharing service. Sustainably at its core integrates with the city’s public transportation system, by pursuing innovation Donkey Republic develops end-to-end products and services that solve city and riders problems. Riders are able to enjoy a more convenient and high quality ride, with our bike and ebike fleet, designed for durability and optimal maintenance through our servicing software platform. This collaborative dedicated software solution together with our bikes, seeks to improve people's health & well-being, the environment, reducing traffic congestion across cities as well as public space optimisation.

Donkey Republic is a publicly traded company listed on the Nasdaq First North Growth Market. The company was listed in 2021 to onboard investors and support its growth and expansion into the European Market, and to continue securing its foothold and developing its market position in the European Micro mobility space. With thousands of Donkey bikes successfully implemented, Donkey Republic aims to grow its business and fulfill its vision of making urban city life quality better through responsible bike sharing

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