Blink targets December profits with cost-saving measures

US CPO Blink Charging has outlined a cost-saving plan to reach Ebitda breakeven by the end of the year, after Q1 gross profits did not translate into positive net income.

Despite reporting a $13.4mn gross profit for the quarter, Blink still registered a $10.2mn Ebitda loss across the period.

Revenues were up by 73pc to $37.6mn, driven by an increased share of service revenues relative to hardware, which Blink has long maintained differentiates it in the charging industry. Services accounted for 30pc of all revenues in the quarter.

"As you can see from these numbers, our revenue is becoming increasingly diversified. We have a competitive advantage in our industry because we offer flexible business models and we can provide L2 and DC chargers as well as network and charging services," CEO Brendan Jones says.

While revenues are showing promising momentum, however, the company is framing its prospective net profitability more in terms of reducing operating costs.

"We are engaged in cost reduction activities across a multiplicity of the businesses," Jones explains. "There is structurally adjusting certain businesses and reorganisations that will result in savings on headcount in there, and there is also the closing of non-performing assets."

Management admits that one of the biggest contributors to cost reductions that the firm hopes will drive it to positive Ebitda by December is the spinoff of its ride sharing operation Blink Mobility, which CFO Rama says is typically "burning about $4mn bottom line Ebitda".

And management suggests that, while it sees opportunities for growth across the second half of the year, the projection of net profit by December is based on assumption of current revenue levels combined with planned cutbacks.

"We see ourselves right now at the current market rate and at the current revenue streams that are coming in, we see ourselves achieving the goal based on the cuts that we have planned," Jones says.