Latest news with #Zeda
TimesLIVE
27-05-2025
- Automotive
- TimesLIVE
Zeda records lower revenue as corporate customers delay investment
Car rental group Zeda, which operates the Avis and Budget businesses, reported lower revenue for the half year to March as the challenging trading environment forced corporate customers to delay investment decisions, including fleet replacement and holding onto vehicles for longer. Small to medium enterprises (SMEs) also came under similar strain, particularly in the mining and transport sectors. Revenue was down 1.6% to R5.2bn. The leasing business segment delivered a solid performance, with revenue increasing by 5.6% to R1.4bn, underpinned by increased penetration within the corporate, heavy commercial fleet and the rest of Africa businesses. The leasing business maintained its growth trajectory, despite the overall delayed fleet investments, Zeda said. It said the upward trajectory of additional revenue was affected by corporate customers delaying replacement cycles and some constraints from SMEs with contracts in the mining and transport sectors in South Africa. Heavy commercial remains a steady growth pillar for Zeda, with a healthy order book. The car rental segment's revenue decreased by 4% to R3.8bn due to a drop in used car volumes. However, excluding the car sales business, rental revenue remained flat. 'We were able to defend the revenue levels despite a decline in the replacement and inbound business. Rental days increased by 2.5%, primarily driven by a 49% rise in the short-term subscription business, following an improvement in technology that made transactions easier for customers,' said Zeda. Zeda has on average more than 20,000 vehicles in its fleet in Southern Africa. Its customer segment base is diversified and consists of the private sector, public sector, insurance business (replacement), inbound market, domestic leisure market and short-term subscription. This business provides a range of self-drive and driven products and services, including car and van rental, chauffeur services and luxury vehicle services. 'In a period where traditional car rental and vehicle sales faced mounting pressure, our leasing, subscription and greater Africa strategies delivered, helping grow earnings, improve margins and continue investing for the long term. 'We achieved this through a stringent implementation of the operating model of financing right, buying right, using right and disposing right,' said Zeda CEO Ramasela Ganda. Zeda anticipates improved performance in the second half of its 2025 financial year, driven by stronger car sales, contract renewals and subscription momentum. Ganda said the bedrock of Zeda's growth pillars consists of the subscription business, the corporate leasing book, greater Africa, and the used car business. 'These pillars provide us with access to vehicles, markets and a disposal channel, which are core to our fundamentals, which remain strong despite the challenging trading environment.'
Zawya
19-03-2025
- Business
- Zawya
South Africa: Strong investor demand fuels Zeda's $46mln bond raise led by Standard Bank
Standard Bank has teamed up with Zeda Limited for its inaugural bond issuance since listing on the Johannesburg Stock Exchange (JSE). Zeda, Southern Africa's top integrated mobility solutions provider, was spun off from Barloworld Group in 2022 before its JSE listing. Among some of its notable assets, the company boasts the short-term rental, long-term leasing and car sales businesses in its stable and operates the global Avis and Budget brands. Last year, Zeda reported impressive results and declared its first dividend since listing. 'We are proud to have partnered with Zeda Limited from its inception and during the unbundling. We have seen the fruits of this partnership on a first-hand basis as the company has gone from strength to strength,' says Luvuyo Masinda, chief executive officer of Corporate & Investment Banking at Standard Bank. 'Standard Bank has been instrumental in the refinancing of Zeda's existing funding and was appointed to establish a JSE-Registered Bond Programme. This partnership culminated in the successful inaugural bond auction to access the debt capital market to diversify its funding base,' says Kaone Lekalake, executive vice president: Client Coverage at Standard Bank CIB. The inaugural bond auction was exceptionally well subscribed for, with R2,36bn of bids received across the notes on offer from a wide range of institutional investors. This strong demand allowed Zeda to upsize the issuance to raise a total of R850m at very favourable pricing, which cleared 5 basis points through the price guidance provided in both notes on offer. The overwhelming investor demand underscores Zeda's robust performance and highlights the positive sentiment toward the company. 'Standard Bank is proud to have walked this journey and partnered with Zeda in accessing the Debt Capital Market. We are also pleased to have played a role in developing the market by bringing a new issuer such as Zeda to market.' say Allister Lamont-Smith, Debt Capital Market Transactor at Standard Bank, CIB. 'We are extremely proud to partner with a bank that supports our integrated mobility strategy in Southern Africa. Funding is one of our strategic objectives, which seeks to lower cost of funding as we invest in growth pillars of the business. Zeda is confident that the first bond auction will be a key enabler to achieving this objective and will unlock value for our shareholders. We believe this is the first of many more successful collaborations,' says Ramasela Ganda, Zeda Limited Group chief executive officer. 'Companies like Zeda delivering mobility solutions across Southern Africa, illustrate what we mean when we say Africa is our home; we drive her growth,' concludes Masinda from Standard Bank. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
