ZEDA full-year revenue up 12%

Car rental and leasing group ZEDA has announced a robust double-digit revenue growth, fueled by increasing demand in its rental and leasing business sector. The company's CEO, Ramasela Ganda, highlighted the significant contribution from corporate revenue to ZEDA's overall performance. Ganda expressed optimism regarding the sustainability of their operational margins and growth trajectory. Despite facing challenges such as high-interest rates and debt obligations, ZEDA remains confident in their ability to maintain strong financial performance. The company's strategic focus on innovation and seizing opportunities in the mobility market has positioned them for continued success. The following key themes and points emerged from the interview with Ganda: Key Theme: Shifting Mobility Landscape The evolving mobility landscape has played a pivotal role in driving ZEDA's growth. Ganda emphasized the company's initiative to reposition car rental as a short-term mobility solution rather than solely airport-centric service. This shift in perspective has attracted a broader customer base and increased activity levels in non-airport locations. Additionally, ZEDA's subscription model has garnered significant traction, reflecting changing consumer behaviors and preferences in the transportation sector. Key Points: 1. Corporate Demand Driving Rental Business Growth Ganda highlighted the surge in corporate travel demand despite initial concerns during the COVID-19 pandemic. The need for mobility remains strong, leading to increased reservations and utilization of ZEDA's rental services. The company's focus on catering to diverse customer segments and expanding service offerings has been instrumental in capturing corporate clientele. 2. Tourism Sector Resilience and Growth Prospects ZEDA anticipates a robust tourism season, with forward bookings exceeding vehicle supply projections. International travelers have shown keen interest in renting vehicles, indicating a promising outlook for the upcoming months. The tourism sector's extended peak season from October to Easter bodes well for ZEDA's rental business, reinforcing their position as a key player in the market. 3. Challenges in Car Sales Amidst Market Constraints While ZEDA's car rental division thrives, the car sales segment faces challenges due to limited availability of new cars and rising interest rates. The company expects a stabilization period in the used car market, albeit with margin declines. By leveraging their fleet management expertise and prioritizing quality assurance, ZEDA aims to navigate the market uncertainties and maintain a competitive edge. Quote: In closing, Ganda highlighted ZEDA's focus on digitalization and innovation in the mobility sector, particularly through their iLease product. The launch of iLease aims to redefine how people perceive mobility by offering long-term leasing solutions at a fixed price, emphasizing cost efficiency and flexibility. Ganda expressed confidence in the growth potential of iLease amidst evolving market dynamics and emphasized ZEDA's commitment to enhancing customer experience and operational efficiency. As ZEDA continues to adapt to changing mobility trends and consumer preferences, the company's strategic vision and proactive approach position them well for sustained success in the competitive car rental and leasing industry.