SIXT consistently penetrates into future markets in Q1 2019 and continues expansion with double-digit growth rates
- Europe’s largest mobility service provider increases consolidated operating revenue by 14.2% in Q1 2019 and generates revenue gains of 26.0% in rental operations abroad
- Expansion in the USA: Opening of around ten stations scheduled, thereof two on-airport stations in Orlando and San Francisco with significant revenue potential
- SIXT share successfully started in Berlin and Hamburg in March, with Munich to follow shortly
- At EUR 47.1 million, earnings before taxes (EBT) are on last year’s level – despite additional expenses for foreign expansion, ramp-up phase of the SIXT ONE platform and continued digitisation of the rental processes
- Full-year outlook 2019 confirmed, with investments of around EUR 8 billion planned for full fiscal year 2019
Pullach, 9 May 2019 – SIXT SE, Europe’s largest mobility service provider, continued its growth path in Q1 2019 and once more managed to increase its revenue substantially. Running contrary to the economic slow-down evident in Europe and the USA, the Group’s operating revenue gained 14.2% over the previous year to EUR 620.0 million. The continued strong increase in demand registered by the foreign vehicle rental companies contributed to this growth in particular. As expected, earnings were affected by the additional expenses for the expansion abroad, the ramp-up phase for the world’s first integrated mobility platform SIXT ONE, and the further digitisation of the rental processes. The accounting standard IFRS 16 (Leases), which has been applicable since the beginning of the year, will also have a negative impact on earnings in the mid-single-digit million range for the full year 2019. Nonetheless, the Group’s earnings before taxes (EBT) amounted to EUR 47.1 million and were thus almost on a par with last year’s figure of EUR 48.2 million, after adjustment for the sale of the stake in DriveNow. Following this dynamic start, the Managing Board of SIXT SE confirms its outlook for the entire fiscal year of 2019 and plans investments of around EUR 8 billion.
Erich Sixt, CEO of SIXT SE: “The first quarter was not only economically successful for SIXT, but also trend-setting. We demonstrated that we are consistently further developing our business model and are changing more and more into a tech-company while being profitable. This was kicked-off by the launch of the new SIXT app together with the unique mobility platform SIXT ONE at the end of February. Thus, enabling us to penetrate deep into our industry’s growth markets. Experts project the mobility market to expand to USD 6,700 billion by 2030.”
Key Group figures for Q1 2019
- Consolidated operating revenue (excluding revenue from the sale of returned leasing vehicles) rose 14.2% to EUR 620.0 million (Q1 2018: EUR 543.0 million). The growth driver was the continued strong increase in demand in the Vehicle Rental Business Unit abroad.
- Operating revenue in the Vehicle Rental Business Unit grew 18.3% to EUR 503.1 million (Q1 2018: EUR 425.4 million). Revenue generated outside Germany climbed 26.0% to EUR 285.5 million. In the domestic rental business SIXT increased revenue by 9.4% to EUR 217.6 million and thereby managed to improve its market position further.
- The Leasing Business Unit’s operating revenue (excluding sales proceeds) came to EUR 116.9 million and thus close to last year’s figure (Q1 2018: EUR 117.7 million; -0.7%). Revenue from the sale of used leasing vehicles increased strongly (+38.5%), primarily due to the sale of vehicle returns from the Online Retail business field.
- Consolidated revenue rose 17.3% to EUR 734.0 million (Q1 2018: EUR 625.7 million).
- The Group’s earnings before taxes (EBT) of EUR 47.1 million is not comparable to last year’s figure of EUR 244.2 million, as the latter contained the one-off income for the sale of the stake in DriveNow generated in Q1 2018. Against last year’s adjusted figure of EUR 48.2 million, this year’s EBT contracted slightly by 2.2%. The result is in line with internal projections and includes substantial additional expenses for expansion activities, the ongoing digitisation of the rental processes as well as the innovative SIXT app together with the SIXT ONE platform. The accounting standard IFRS 16 (Leases), which has been applicable since the beginning of the year, will also have a negative impact on earnings in the mid-single-digit million range for the full year 2019. Before its introduction, the new standard was the subject of controversial discussion, as it entails among other things considerable additional bureaucratic work for the companies concerned.
- Consolidated profit for Q1 is EUR 33.3 million (Q1 2018: EUR 214.6 million).
- Fleet expansion: Over the first three months of the current year, SIXT added around 70,700 vehicles to the rental and leasing fleets (Q1 2018: 69,700 vehicles) with a total value of EUR 1.97 billion (Q1 2018: EUR 1.86 billion). This equals an increase of around 1% in the number of vehicles and around 6% in the investment volume.
Encouraging start of the new SIXT app – swift expansion of the SIXT share network
Since the end of February, SIXT has been offering its customers access to around 270,000 vehicles through the new SIXT app and the integrated mobility platform ONE with around 1,500 partners and over a million drivers in over 250 cities worldwide. The new app brings together the products SIXT rent, SIXT share and SIXT ride. SIXT rent, the regular rental process of SIXT is available worldwide through the SIXT app. The complete handling of the rental process via the app – including the opening of the car – is already possible for all connected vehicles. The new carsharing offer, SIXT share, offers customers the freedom to pick their car whenever and wherever they want and to return it flexibly in all the business areas of SIXT share and in future at all SIXT stations worldwide. Following the successful start of SIXT share in Berlin and Hamburg, Munich is set to follow shortly. With SIXT ride, customers can make instant or advance bookings for taxis, drive and transfer services.
Outlook for full-year 2019 confirmed
SIXT continues to look confidentially ahead towards fiscal year 2019. The Managing Board expects to see growing demand, which continues to be driven primarily by foreign business in the Vehicle Rental Business Unit. Strategically, SIXT plans to further expand in the USA and Europe outside Germany, digitally connect its fleet and gradually integrate its service range into the SIXT app. In the world’s biggest vehicle rental market, the USA, SIXT already won tenders for on-airport stations in Orlando and San Francisco. These two airports alone generate an annual revenue volume of almost USD 1.3 billion for vehicle rentals. In total around ten new stations are due to be opened in the USA during the course of the year. These activities will require additional investments, but will generate strong growth impulses for the future.
SIXT is confirming its previous full-year forecast for 2019. Subject to the general economic climate not worsening substantially, the Managing Board expects to see consolidated operating revenue climb significantly and a stable Group EBT compared with last year’s figures (last year’s Group EBT discounted for the sale of the stake in DriveNow).
SIXT SE today publishes its Quarterly Statement as per 31 March 2019 on its website at http://ir.sixt.eu in the section “Financial Reports”.
SIXT Central Press Office
Phone: +49 (0) 89 / 7 4444 6700
Email: [email protected]
The SIXT Group at a glance
(Data according to IFRS; rounding differences may occur)
|Group’s revenue development||Change|
|in EUR million||Q1 2019||Q1 2018||in %|
|Vehicle Rental Business Unit||503.1||425.4||+18.3|
Thereof rental revenue
Thereof other revenue from rental business
|Leasing Business Unit||229.9||199.3||+15.4|
Thereof leasing revenue
Thereof other revenue from leasing business
Thereof sales revenue
|Group’s earnings performance||Change|
|in EUR million||Q1 2019||Q1 2018||in %|
|Fleet expenses and cost of lease assets||282.1||237.2||+18.9|
|Depreciation and amortisation expense||149.9||123.1||+21.8|
|Net other operating income/expenses||-127.2||-114.7||+10.9|
|Earnings before interest and taxes (EBIT)||56.6||59.3||-4.5|
|Net finance costs||-9.5||185.0||>-100|
|Earnings before taxes (EBT)||47.1||244.2||-80.7|
Thereof Vehicle Rental Business Unit
Thereof Leasing Business Unit
|Income tax expense||13.8||29.6||-53.5|
|Other key figures for the Group||31 Mar. 2019||31 Dec. 2018||Change in %|
|Total assets (in EUR million)||5,933.4||5,193.3||+14.3|
|Rental vehicles (in EUR million)||2,935.5||2,605.2||+12.7|
|Lease assets (in EUR million)||1,151.6||1,204.4||-4.4|
|Equity (in EUR million)||1,485.8||1,442.0||+3.0|
|Equity ratio (in %)||25.0||27.8||-2.8 points|
|Q1 2019||Q1 2018||Change in %|
|Investments (in EUR billion)1||1.97||1.86||+5.9|
|Average number of rental vehicles (Group)||129,200||110,100||+17.4|
|Number of leasing contracts as at 31 Mar. (Group)||125,600||133,500||-5.9|
1 Value of vehicles added to the rental and leasing fleets