Ongoing restrictions in response to corona burden Sixt SE’s consolidated EBT in the first quarter of 2021 – positive development in Europe and the USA in March
- SIXT able to limit consolidated EBT to EUR -13.7 million in the first quarter of 2021 by consistently reducing its cost base by EUR 136 million (-32%) despite a 32% decline in revenue due to the ongoing lockdown in Europe
- Positive development at the end of the first quarter: International mobility services provider already achieved positive consolidated EBT again in the month of March and consolidated revenue at the previous year’s level
- Demand picks up again, particularly in the USA, due to the progress being made with the vaccination campaign and the easing of corona restrictions
- Positive Corporate EBITDA in the USA and Europe in the first quarter despite pandemic-related restrictions
- Thanks to a high equity ratio of 31.7% and financial resources well in excess of EUR 2 billion available, SIXT is ideally positioned for a resurgence in demand compared to its competitors
- Due to high uncertainties regarding the future course of the COVID-19 pandemic, it is still not possible to forecast business development for the full year 2021
- CEO Erich Sixt: “The positive development of the past few weeks gives us hope and clearly shows our customers’ desire for individual mobility. Nevertheless, it is definitely still too early to sound the all-clear.”
Pullach, 12 May 2021 – SIXT has seen its business performance brighten in recent weeks despite the current strict restrictions on international travel and ongoing national contact restrictions and curfews in Europe due to the COVID-19 pandemic. In the month of March 2021, the international mobility service provider once again managed to generate consolidated revenue at the previous year’s level and positive consolidated earnings before taxes. This was primarily due to an upturn in demand in the fast-growing market in the USA, where SIXT achieved positive Corporate EBITDA overall in the first quarter of 2021. Capacity utilisation remains stable in all segments, not only in the USA, but also in the city offices and in the long-term rental and car subscription segments. Thanks to the recovery in demand and continued strict cost management, consolidated EBT could be limited to EUR -13.7 million in the first quarter. Personnel and material expenses fell by 33% compared to the same period of the previous year, and fleet costs were reduced by 31%. Altogether, this equates to a decrease of around EUR 136 million, or 32%, compared to the same quarter of the previous year. Overall, however, business performance in the period from January to March continued to be impacted by the tough, and in some cases even stricter, lockdown in Europe. In view of the continuing high level of uncertainty regarding the future course of the pandemic, the Managing Board continues to refrain from issuing a forecast for the full year.
Erich Sixt, CEO of Sixt SE: “The positive development in the first quarter, which continued in the month of April, gives us hope for the important second and third quarters. We are seeing that once COVID-19 restrictions are relaxed, people have an unbridled urge to be individually mobile and travel. SIXT will benefit greatly from this with its broad product portfolio. The easing that has now also been announced in many European countries should have a positive impact on how demand develops. Despite the encouraging signals, we must remain cautious and monitor the further course of the pandemic closely. It is definitely too early to sound the all-clear.”
Q1 2021 – Key Group figures
- Consolidated revenue for the period from January to March amounted to EUR 329.9 million, 32.5% less than in the first quarter of the previous year (EUR 488.5 million). Throughout the reporting period, revenue performance was impacted by the ongoing severe, and in some cases even stricter, public sector restrictions in Europe and the correspondingly weak international travel market. In the same period of the previous year, SIXT had still recorded an increase in revenue at a high level in the months of January and February, before the onset of the corona measures.
- In Germany, revenue declined by 34.8% to EUR 137.0 million.
- In the Europe region (excluding Germany), revenue was down 36.0% to EUR 110.6 million. There were signs of an upturn in demand in some countries towards the end of the first quarter.
- In the USA, revenue was 22.0% lower at EUR 82.3 million.
- Consolidated earnings before taxes (EBT) was limited to EUR -13.7 million thanks to the continued substantial reduction in fleet, material and personnel expenses. EBT (from continuing operations) in the first quarter of 2020 was EUR -5.1 million.
- Corporate EBITDA, which reflects the operating result including interest income and depreciation on rental vehicles, reached a positive value of EUR 17.1 million in the Mobility Business Unit. Positive earnings contributions from the USA in particular, but also from Europe, were offset by negative Corporate EBITDA in Germany. At Group level, Corporate EBITDA amounted to EUR 18.3 million.
- SIXT recorded a consolidated net income after taxes of EUR -10.0 million for the first quarter (Q1 2020: EUR -9.6 million from continuing operations).
Continued cautious fleet policy
SIXT has significantly reduced the size of its fleet due to the COVID-19 pandemic. In the first three months of 2021, SIXT added around 37,700 vehicles (Q1 2020: around 55,900 vehicles) worth a total of EUR 1.15 billion (Q1 2020: EUR 1.72 billion) in its rental fleet across the Group. This represents a decrease in the number of vehicles by around 32% and in the investment volume by around 33%. The average fleet size in the first three months was 93,200 vehicles, down from 130,900 in the first quarter of last year (-28.8%). As demand rises in the course of the ongoing vaccination campaign towards the summer, the fleet can also be increased again accordingly.
Alexander Sixt, Board member of Sixt SE: “SIXT has created all the conditions to emerge stronger from this crisis and to benefit from the gradual return to normal demand to a greater extent than the competition. This was made possible by the consistently implemented cost adjustments of EUR 136 million in fleet, material and personnel expenses compared to the same period of the previous year (-32%), but also by our strategic growth initiatives, such as our expansion in the USA, our investments in our digitalisation strategy and the launch of our car subscription offer SIXT+. Last year, SIXT already managed to increase its market share in Europe by around 3 percentage points despite the crisis. Through the syndicated loan we concluded in the first quarter and a total of over EUR 2 billion in available funds, we also have increased our financial flexibility to expand our business and invest in our fleet.”
Outlook for the full year 2021
Despite initial positive signals at the end of the first quarter, there are currently still very high uncertainties surrounding the future course of the COVID-19 pandemic. Therefore, a reliable estimate of the extent and duration of the pandemic-related restrictions, in particular the restrictions on travel, is currently not possible. For this reason, the Managing Board is still unable to issue a forecast on how the SIXT Group’s business will develop in 2021.
Sixt SE is publishing its Group Quarterly Statement as at 31 March 2021 today on its website at http://ir.sixt.eu in the section entitled “Financial Publications”.
Sixt SE with its registered office in Pullach near Munich, is a leading international provider of high-quality mobility services. With its products SIXT rent, SIXT share, SIXT ride and SIXT+ the company offers a uniquely integrated premium mobility service across the fields of vehicle and commercial vehicle rental, car sharing, ride hailing and car subscriptions. The products can be booked through one single app, which also integrates the services of its renowned mobility partners. SIXT has a presence in around 110 countries around the globe. The company is characterized by consistent customer orientation and excellent customer experience, a living culture of innovation with strong technological expertise, the high share of premium vehicles in its fleet and an attractive price-performance ratio. The Sixt Group doubled its revenue since 2009 and generated revenues of EUR 3.31 billion in 2019 and is ranked as one of the most profitable mobility companies in the world. In 2020, SIXT generated consolidated revenues of EUR 1.53 billion despite travel and outbound restrictions due to the COVID-19 pandemic and reported a positive consolidated net income of EUR 2 million after cost savings of approximately EUR 600 million among others. Sixt SE is the parent company of the Group and has been listed on the Frankfurt stock exchange since 1986 (ISIN ordinary share: DE0007231326, ISIN preference share: DE0007231334). https://about.sixt.com
Kathrin Greven / Stefanie Seidlitz
SIXT Central Press Office
Phone: +49 (0) 89 / 7 44 44 – 6700
e-mail: [email protected]
The SIXT Group at a glance
(Data according to IFRS; rounding differences may occur)
|in EUR million||Q1 2021||Q1 2020||in %|
|Mobility Business Unit||327.3||485.5||-32.6|
|Thereof rental revenue||289.0||429.0||-32.6|
|Thereof other revenue from
|in EUR million||Q1 2021||Q1 2020||in %|
|Depreciation and amortisation expense||79.4||117.4||-32.4|
|Net other operating income/expenses||-77.8||-110.8||-29.8|
|Earnings before net finance costs and taxes (EBIT)||-4.9||4.2||>-100|
|Net finance costs||-8.8||-9.3||-5.1|
|Earnings before taxes (EBT)||-13.7||-5.1||>100|
|Income tax expense||-3.7||4.5||>-100|
|Result from continuing operations||-10.0||-9.6||3.8|
|Result from discontinued operations, net of taxes||–||25.8||-100|
|Other key figures for the Group||31 Mar. 2021||31 Dec. 2020||Change in %|
|Total assets (in EUR million)||4,422.6||4,428.5||-0.1|
|Rental vehicles (in EUR million)||2,326.1||2,204.6||+5.5|
|Equity (in EUR million)||1,400.0||1,394.7||+0.4|
|Equity ratio (in %)||31.7||31.5||+0.2 points|
|Q1 2021||Q1 2020||Change in %|
|Investments (in EUR billion)1||1.15||1.72||-33.1|
|Average number of rental vehicles (Group)||93,200||130,900||-28.8|
1 Value of vehicles added to the rental fleet