Swvl losses to almost double this year
Swvl expects losses to almost double this year: Cairo-born mass transport app Swvl is expecting its losses to widen to USD 90 mn this year from USD 50 mn in 2021, Swvl CFO Youssef Salem told Bloomberg Asharq. The Nasdaq-listed company still expects to turn a slight profit next year on the back of job cuts and cutting unprofitable routes before making USD 13 mn in 2024. “Part of our plan for the next few months, and in order to turn profitable in light of the sharp change in the market, is to focus on the routes that have the highest rates of operation and profitability,” he said.
Cutting costs: The company has slashed its headcount by a third, cutting executive pay and eliminating unprofitable routes in Egypt, Jordan and Kenya as it looks to ride out current market headwinds and achieve its financial targets for 2023.
Revenues are looking more solid: Swvl raised its 2022 guidance when it reported 1Q 2022 earnings (pdf) in April, and now expects to generate USD 160 mn in revenues this year, up from USD 100 mn in 2021. The company expects this to jump to USD 400 mn in 2023, Salem told the business newswire.
The market still isn’t buying it: The company’s share price fell another 4.5% in New York yesterday, leaving it down almost 81% since its IPO less than four months ago. Shares are now trading at USD 1.9 after debuted at USD 10 apiece.