T2 results Møller Mobility Group: Still challenging market for new cars

29 Oct 2024 09:00 CET

Møller Mobility Group reported a profit before tax of NOK 819 million per second
quarter, NOK 591 million lower than in the corresponding period last year. The
turnover decreased by 12.3 per cent compared with the previous year, and the
profit margin has been reduced from 5.1 per cent to 3.4 per cent this year. The
main reason for the decline is a challenging market situation for new cars,
characterized by strong price competition and high interest rates.

"We are still experiencing a demanding market for new cars, even though the
order intake is better than last year," says CEO Petter Hellman.

The Group's revenue was NOK 24,336 million in the second quarter, compared with
NOK 27,755 million in the same period last year. This decline is largely due to
lower new car volumes in both Norway and the Baltic countries. Despite the fact
that the order intake so far in 2024 is higher than last year, the number of
deliveries is still lower, but the order bank is now at a more normalized level.

"Last year was characterized by high deliveries from a large order bank and a
number of cancellations in the first half of the year, while this year we have a
more steady development," Hellman explains. "However, we see positive signs with
higher order intake after the summer.

Good development in the service market
Despite the challenges in new car sales, the Group's service market has had a
positive development in all markets. Turnover from used car sales is somewhat
lower than last year, but maintains stable earnings.
"We must create even better customer experiences and constantly work to improve
our service. Customer preferences are changing, and we've put in place many
initiatives to improve the customer journey. This work will continue with great
vigour going forward," says the CEO.

Challenging total market
As expected, the total market has been lower than last year, this applies to
both Norway, Sweden and the Baltic countries. In Norway, 78,828 passenger cars
were registered in the period January to August, a decrease of 7 per cent from
last year. The group's passenger car brands had a market share of 19.3 per cent,
down from 20.8 per cent at the end of last year. However, the increase in the
commercial vehicle segment has partly compensated for this decline.

"We have had a good development in commercial vehicles and now have a market
share of 36 percent" Hellman emphasizes.

Hyre improved results significantly
Møller Mobility Group owns over 85 per cent of the car-sharing company Hyre.

"Hyre has continued solid revenue growth this year, but is now steering more
towards profitability, especially in Norway. We still have great faith in the
further development of the company and further growth in the Nordic region,"
says Hellman.

Outlook
The Group expects the market to continue to be challenging for the rest of the
year, but is positive about its market position:
"We expect good market shares in 2024 and 2025, and have several attractive
models on the way in such as the Skoda Elroq and Audi A6 etron. A lower interest
rate level could lead to increased demand for new cars in all markets. We also
have a committed organization with us. I want to commend the efforts of our
people who are working hard and see opportunities and solutions in a demanding
market," Hellman concludes.

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