Sixt SE: Sixt continues on its growth track in first half of 2016
Sixt continues on its growth track in first half of 2016
- Unabated dynamism in foreign operations: rental revenues outside Germany up by almost one third
- Operating Group revenue for first six months 13.1% higher than last year
- Consolidated earnings before taxes (EBT) up 9.5% to EUR 81.9 million despite ongoing additional expenditures incurred for expansion measures
- Unchanged positive outlook for full fiscal year 2016
Pullach, 18 August 2016 – Sixt Group remains on its expansion track. During the first half of 2016 the international mobility service provider continued its double-digit growth and improved its consolidated operating revenue by 13.1% year-on-year to EUR 1.00 billion. These developments were driven by a strong gain in revenues in the foreign operations of the Vehicle Rental Business Unit, which climbed almost one third. Despite ongoing high extra expenditure for the international expansion, the Group’s earnings before taxes (EBT) – Sixt’s key earnings parameter – gained 9.5% in the first half of the year and totalled EUR 81.9 million. The Management Board confirmed its previous revenue and earnings expectations for the full fiscal year of 2016.
Erich Sixt, CEO of Sixt SE: “We recorded an encouraging business development in the first half of the year. Outside Germany Sixt continues to outperform the vehicle rental industry as a whole and thereby continually manages to gain market shares. Although the general conditions for travel and tourism traffic in Europe have become more difficult, we remain confident for the further course of the year and expect to achieve our economic targets for 2016.”
Group performance after the first six months of 2016
- The Group’s total revenue climbed 14.6% to EUR 1.15 billion (H1 2015: EUR 1.00 billion).
- At EUR 1.00 billion consolidated operating revenue, excluding revenue from the sale of used leasing vehicles, was 13.1 % higher than the prior-year figure (H1 2015: EUR 886.9 million). 43% of this revenue was generated outside Germany as against the 39% in the same period last year.
- Rental revenues climbed to EUR 718.0 million after EUR 613.4 million in the first six months of last year. This is equal to a growth of 17.1% or EUR 104.6 million. The increase was due to stronger demand from commercial and corporate customers as well as private clients, and measures undertaken to intensify sales and marketing activities. The foreign share in total rental revenue reached 53% (H1 2015: 47%).
- Operating leasing revenue came to EUR 206.1 million and was thus marginally lower than last year, down 2.2% (H1 2015: EUR 210.8 million). This development is essentially due to gasoline prices, which generated lower income from fuel services.
- The Group’s profit before taxes (EBT) rose 9.5%, from EUR 74.8 million to EUR 81.9 million. The half-yearly earnings already include the extension to the stations network, the international expansion of the transfer service myDriver, which kicked off in the first quarter, and the further expansion of the premium carsharing service DriveNow into European countries outside Germany.
Group developments in the second quarter of 2016
- From April to June 2016 the Group registered an 11.5% gain in consolidated operating revenue to EUR 538.2 million (Q2 2015: EUR 482.7 million).
- Rental revenues climbed 15.2% to EUR 392.7 million compared to EUR 340.9 million in the second quarter of 2015.
- Operating leasing revenue amounted to EUR 105.0 million, (Q2 2015: EUR 107.2 million; -2.1%).
- In the second quarter, EBT improved 8.9% from EUR 46.7 million to EUR 50.8 million.
High investment in the rental and lease fleets
Over the first six months of this year the Group added around 115,900 vehicles to the rental and leasing fleet (H1 2015: 107,800 vehicles; +8%) with a total value of EUR 3.07 billion (H1 2015: EUR 2.94 billion; +4%). These higher investments reflect the expansion of the operating business.
Rock-solid capital base
The share buy-back programme, which Sixt SE had decided upon in March 2016, with a volume of EUR 50 million (excluding additional acquisition costs), was successfully completed on 18th July. The shares bought back are to be retired in order to lower the company’s share capital. The buy-back programme is having a positive effect on the appeal of Sixt shares, since from an investor’s point of view, a lower number of shares serve to improve key financial parameters such as EPS, earnings per share.
Following the share buy-back and the payment of the dividend for the fiscal year 2015 in June this year, the Group’s equity as of 30 June 2016 came to EUR 987.2 million and was thus marginally lower than at the end of the year 2015 (EUR 1.06 billion). Nonetheless, with an equity ratio of 22.6% Sixt continues to have a capital base that is far above the average in the rental and leasing industry.
Outlook for the whole of 2016
Following the good business performance of the first six months, the Management Board affirms its previous projections for the whole of 2016. Upholding the cautious and demand-driven fleet policy, the Board continues to expect to see a slight gain in consolidated operating revenue over last year. Allowing for ongoing extra expenses for strategic expansion measures, the Management Board expects to generate stable to slightly higher consolidated pre-tax profits (EBT).
Developments in the operating business units
The number of Sixt rental stations worldwide (corporate and franchise) grew to 2,214 by the middle of 2016, some 61 more than at the end of the previous year (2,153). The international franchise network and Germany accounted for most of this increase. The number of stations in the Sixt corporate countries remained almost unchanged at 1,062 (1,063 at the end of 2015). In Germany, the network of stations grew by 12 branches to 520.
The average number of vehicles in the Vehicle Rental Business Unit (in Germany and abroad, excluding franchisees) for the first six months of 2016 came to around 105,300 vehicles, a rise of 15.4% against the average figure for the same period in 2015 (approx. 91,200 vehicles).
Rental revenue generated by the Business Unit over the first six months of the year climbed 17.1% year-on-year and totalled EUR 718.0 million. Growth outside Germany reached 31.5% totalling EUR 377.1 million, while rental revenue in Germany grew 4.3%, to EUR 340.9 million. All in all, the Vehicle Rental Business Unit reports revenue growth of 17.9% for the first six months of 2016 to EUR 797.3 million (H1 2015: EUR 676.1 million).
Despite the extra expenditure on expansion measures, the pre-tax profit (EBT) closed out at EUR 66.1 million, some 8.9% higher than for the first half of 2015 (EUR 60.7 million).
At the end of June 2016, DriveNow, the premium carsharing joint venture operated together with BMW, already had more than 650,000 customers inside and outside Germany. This means that around 70,000 new customers were won over in the first half of the year (end of 2015: 580,000). Since early July the carsharing service has also been available in Brussels, making it the tenth DriveNow city.
Sixt Leasing SE, which bundles together all of the Sixt Group’s activities in fleet leasing, fleet management and online retail leasing, is one of Germany’s leading bank and vendor-neutral leasing companies.
As of reporting date, 30 June 2016, the Leasing Business Unit’s total number of contracts inside and outside Germany (excluding franchisees and cooperation partners) increased to 105,200 contracts, 1.8% more than the number recorded on 31 December 2015 (103,200 contracts). Especially the Online Retail business field (private and commercial customer leasing) continued its dynamic growth in contracts, gaining a total of 15.5%.
The Leasing Unit’s revenue from January to June 2016 rose 7.6% to EUR 348.6 million
(H1 2015: EUR 323.9 million). This was mainly due to higher proceeds from the sale of used leasing vehicles, which in turn is the result of the expansion in the contract portfolio over the last few years, which leads to correspondingly more vehicle returns with a certain time lag.
The Leasing business’ EBT showed an above-average improvement and was 18.2% higher at EUR 16.2 million after six months (H1 2015: EUR 13.7 million).
Sixt Central Press Office
Tel.: +49 (0) 89 / 99 24 96 – 30
Fax: +49 (0) 89 / 99 24 96 – 32
E-Mail: [email protected]
The Interim Report of Sixt SE as of 30 June 2016 is now available for download at http://ir.sixt.de/interim-reports.
The Sixt Group at a glance
(All figures in accordance with IFRS)1
Consolidated revenue development
|Consolidated operating revenue||1,003.5||886.9||+13.1||538.2||482.7||+11.5|
|Vehicle Rental Business Unit||797.3||676.1||+17.9||433.2||375.5||+15.4|
|Thereof rental revenue||718.0||613.4||+17.1||392.7||340.9||+15.2|
|Thereof other revenue from rental business||79.3||62.7||+26.4||40.5||34.6||+17.0|
|Leasing Business Unit||206.1||210.8||-2.2||105.0||107.2||-2.1|
|Leasing sales revenue||142.5||113.1||+26.0||71.5||53.9||+32.8|
Consolidated earnings development
|Fleet expenses and cost of lease assets||417.2||385.4||+8.2||214.7||202.3||+6.1|
|Depreciation and amortization expense||243.2||197.7||+23.1||128.8||104.7||+23.0|
|Net other operating income/expenses||-238.5||-201.7||+18.2||-130.9||-112.7||+16.2|
|Earnings before interest and taxes||100.9||88.4||+14.1||60.3||50.4||+19.6|
|Net finance costs||-19.0||-13.6||+39.3||-9.5||-3.7||> +100|
|Earnings before taxes||81.9||74.8||+9.5||50.8||46.7||+8.9|
|Income tax expense||25.2||20.8||+21.4||15.1||13.5||+11.2|
|Earnings per share – basic (EUR)2||1.04||1.00||–||0.67||0.57||–|
Other key figures for the Sixt Group
|30 Jun. 2016||31 Dec. 2015||Change in %|
|Total assets (EUR million)||4,369.9||3,660.5||+19.4|
|Rental vehicles (EUR million)||2,204.9||1,763.3||+25.0|
|Lease assets (EUR million)||974.9||957.8||+1.8|
|Equity (EUR million)||987.2||1,058.8||-6.8|
|Equity ratio (%)||22.6||28.9||-6.3 points|
|H1 2016||H1 2015||Change in %|
|Investments (EUR billion)3||3.07||2.94||+4.3|
1 Due to rounding it is possible that individual figures presented in this news may not add up exactly to the totals shown and that the half-year figures listed may not follow from adding up the individual quarterly figures. Furthermore, the percentage figures presented may not exactly reflect the absolute figures they relate to.
2 Based on 47.7 million shares in the first six months of 2016 and 48.1 million shares in the first six months of 2015
3 Value of vehicles added to the rental and leasing fleets