Revenue at taxi-booking app FreeNow climbed 20 per cent last year, but most of the extra cash was wiped out by additional administrative expenses, the company’s latest set of accounts show.
FreeNow Ireland generated a turnover of €46.1 million for the year ended December 31st, 2023, which was up from €38.4 million in 2022.
The company said the increase came as it focused on “restructuring its internal cost structure” and “refining the expense allocation mechanism for app usage” within the group.
However, administrative expenses also climbed, from €27.4 million to €33.6 million over the year, while the cost of sales rose from €6.1 million to €7.3 million.
As a result, its profit for the year rose just 9 per cent from €4.3 million to €4.7 million.
While no dividend was paid out in 2022, a cash dividend of €7 million was paid from its capital contribution account in 2023.
The directors said they were satisfied this amount “represented a realised profit of the company which can be distributed by way of cash dividend”.
In a note attached to the accounts, FreeNow also outlined plans to “future-proof” the business ahead of a drive towards decarbonisation.
“To ensure a future-proof business model, the directors will continue to invest in their mobility partners and support electric vehicle use among drivers in the coming years, as well as aiming to offer all services via FreeNow climate neutral by 2030,” it said.
Furthermore, the company also started a trial with an electric scooter provider in Dublin “in order to accompany the ongoing change within the mobility market”. It said this move was supported by Government legislation, which was passed in October 2021.
The directors said they expect the company to stay in profit while still investing into its current business models to increase its activity in Ireland, and that budgets and business plans have been put in place in accordance with the group’s other operations across Europe.
The company spent €2.6 million on staff and personnel in the year, which was up from €2.4 million the year before, despite a reduction in headcount from 34 to 31.
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