Mobility solutions group Zeda has reported improved first-half earnings led by a strong performance in its leasing business and as car sales volumes rose.Revenue for the six months to end-March increased by 3.2% to R5.5bn and profit before tax rose 5.5% to R520mHEPS was up 6.1% to 201.2c and an interim dividend of 80c per share was declared, an increase of 45% from a year ago.Zeda said its leasing business reported solid growth of 7.5%, while car sales volumes surged by 12.9% compared with a year ago. However, the car rental business partly negated this accomplishment.“The solid performance was weighed down by the car rental business, which declined by 2.7% due to operating in a highly price-sensitive environment,” it said. There was a reduction in rental duration across the subscription and replacement segments, resulting in the utilisation rate falling to 71% from 75% in the prior year. Nevertheless, domestic travel recorded double-digit volume growth due to sustained travel demand and a 2.7% expansion in the rental fleet. “As we navigate the pricing pressures in this market, we are focusing on strategic expansion into previously untapped inbound customer channels to further support growth in the leisure segment, domestic and inbound, which grew by 2.3% in the period under review.”Greater Africa remains a significant contributor, generating 21.3% of group leasing revenue, supported by double-digit growth in key markets such as Ghana, Zambia and Lesotho. However, Namibia and Mozambique remained under pressure and weighed on the portfolio.The group said it recognised a release of R31m in expected credit loss provisions for the first half, reflecting enhanced credit risk management through improved collections and reduced damage costs. This further contributed to earnings growth.The group said economic growth observed in the first quarter did not persist into the second quarter due to supply-side constraints and significant increases in fuel prices related to the conflict in the Middle East. It expects the momentum in the leasing business, including the public sector, to be sustained in the second half.The group expects to see improvements in its Greater Africa businesses as it focuses on performance recovery in Namibia, which is expected to result in a resurgence of the portfolio. “We expect the rental market to remain highly price-sensitive. However, we have implemented strategies to drive our subscription offering and base in the market,” it said.“In addition, we will continue to leverage the strength of our existing partnerships and onboard new partners in the leisure market as we position this segment for the continued momentum.”The vehicle mix in its on-balance-sheet rental fleet favours smaller vehicles, placing Zeda in a stronger position in the used car market as consumers face pressure from higher fuel prices and potential interest rate increases.“This will support the growth of our used car business while our strategic intent to focus on retail channels provides margin enhancement.”After approval of the group’s Africa strategy, Zeda has retained Ghana as a strategic anchor from which to serve the West Africa region under Avis Budget Group’s broadened licence framework. “We have commenced mapping opportunities in West Africa where we can follow our customers and expand in a disciplined manner. The approach remains asset-light and customer-led, with capital deployed only where there are secured customer contracts, embedded demand and appropriate risk-adjusted returns,” it said.The group will prioritise jurisdictions where it can repatriate cash, manage currency volatility and access adequate funding liquidity. Countries that do not meet these gating criteria will be deferred until conditions improve.