Tech: Global EV momentum drives Vmoto’s full-year earnings up over 15,000pc
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Electric scooter company Vmoto (ASX:VMT) showed some strong earnings momentum in its preliminary final report this morning.
The company told investors today that its EBITDA (earnings before interest, tax, depreciation and amortisation) had climbed to $2.9m – up from $18k in the year prior.
In percentage terms, that’s a healthy 15,825 per cent. The core earnings result was derived from top-line revenue growth which more than doubled to $45.7m, a 133 per cent jump over 2018.
And the result also flowed through to the company’s provisional net profit figures which came in at $1.3m, in line with December guidance.
Shares in the company ticked lower in morning trade, as the broader market downturn remains ongoing amid coronavirus uncertainty.
The company has been actively growing its presence in international markets. In January, the company inked a sales agreement with major European ride-sharing platform GO Sharing for another 2,000 scooters.
Total sales into international markets reached 17,257 scooters in 2019, representing 86 per cent of Vmoto’s total sales.
This increased uptake has been driven by several countries stepping up the push to reduce their carbon emissions and combat climate change.
British Prime Minister Boris Johnson has moved forward the UK ban on the sale of new petrol and diesel vehicles from 2040 to 2035 while Norway, the current leader in EV adoption, is looking to stop the sales of fossil fuelled vehicles by 2025.
Other European countries are also looking at similar phase-outs.
But electric cars are still pretty pricey, so it looks as if consumers are leaning towards the more affordable two-wheel version.
To capitalise further on this growing market, Vmoto revealed this week it and long-time partner Super Soco Intelligent Technology (Shanghai) Co would form their own Chinese-registered manufacturing company.
Vmoto managing director Charles Chen said that by the pair joining forces on manufacturing, they would be able to achieve economies of scale and favourable trading terms that they wouldn’t be able to achieve if they went solo.
The new company, Vmoto Soco, will be the sole and exclusive manufacturer for both Vmoto and Super Soco electric scooter and motorcycle products.
eSports company iCandy Interactive (ASX:ICI) beat the market blues, after announcing it’s received 450,000 pre-registrations ahead of the April launch of its new game, Rocky Rampage: Wreck ‘em up!.
The game was developed by iCandy’s Indonesian studio, Joyseed, and is one of the four new in-house developed major games that iCandy plans to launch this year. Shares in ICI jumped more than 15 per cent to 1.5 cents, but the stock is still well off its 12-month high of nine cents reached in March last year.