Avis operator Zeda saw revenue from its car rental business grow 26%, thanks to the boom of tourism and corporate travel following the Covid-19 pandemic.
Zeda is Africa’s largest mobility solutions provider with long-term license agreements to operate the leading car rental brands Avis and Budget.
In its interim results for the six months ended 31 March 2023, Zeda reported a 20% growth in revenue for the period.
The company’s operating profit was up 25% to R803 million, while its basic earnings per share increased by 27%.
Zeda’s car rental business played a large role in the company’s revenue growth.
The car rental business delivered solid revenue growth of 26% compared to the prior period, driven by strong corporate, inbound, and domestic travel demand.
“The car rental business continues to benefit from diversification of offerings, such as subscription and aggressively growing the replacement (insurance) business,” Zeda said.
“This, together with the recovery of inbound, corporate travel and used car sales, yielded a strong revenue of R3.304 billion, representing a 26% growth year on year.”
Revenue in inbound and corporate business travel surged by 138.7% and 69.5%, respectively, compared to the previous period.
These factors saw the company achieve a record EBITDA of R1.016 million in its car rental business. This is a 39% increase in EBITDA compared to the previous period.