Corporate News 13 Aug 2020

Sixt SE: SIXT defines key strategic directions for future growth – H1 earnings severely affected by Corona

SIXT defines key strategic directions for future growth – H1 earnings severely affected by Corona

  • Significant upturn in demand at urban offices continues, while airport business still significantly curtailed
  • Reduction of total cost basis by around EUR 210 million (-35%) in Q2 2020 alone underlines high adaptability of business model
  • Long-term and sound financing basis thanks to strong equity ratio of 23.9% and high liquidity due to EUR 800 million in cash as well as other non-utilised financing instruments
  • Following the successful sale of Sixt Leasing SE, SIXT consistently drives forward its internationalisation and digitisation strategy over the first six months. These include the successful take-over of 10 airport markets in the USA with a volume of USD 3.4 billion, the launch of the new flexible vehicle subscription service SIXT+ as well as kicking off SIXT share in the Netherlands with, for the first time, a 100% electrified vehicle fleet
  • CEO Erich Sixt: “In an ever more consolidated market we want to create further growth potential for us by making the most of the digital transformation for our business and by the consistent expansion of our mobility platform SIXT ONE.”

Pullach, 13 August 2020 – As expected and duly announced, SIXT’s business performance during the first six months of 2020 was significantly impacted by the effects of the global Corona crisis, which as of mid-March had brought national and international travel to a complete halt for some time. With the global volume of passenger at international airports down by over 90%[1], the mobility service provider records consolidated revenue of EUR 717.0 million for the first six months of 2020, a decline of 36.7% against the same period the year before. The Group’s pre-tax earnings (EBT) amounted to EUR -122.9 million (H1 2019: EUR +113.4 million).

The measures taken in Q2 immediately after the outbreak of the pandemic to lower fleet, material and personnel costs are already having a positive effect. Thus, in Q2 2020 alone the total cost basis was cut by around EUR 210 million, a reduction of 35% against the same quarter last year and a clear demonstration of the adaptability of the business model and high variability of SIXT’s cost basis. Consequent actions meant that in a single quarter material and personnel costs alone were reduced by approx. EUR 100 million and thus significantly over half of the annual total target of EUR 150 million. On top of these are savings made to the fleet. In its urban offices business SIXT managed to continue the positive trend registered in the first quarter and also saw significantly rising demand in key markets such as the USA and Germany, which in some cases were back to levels of last year. In the carsharing area bookings even outstripped pre-Corona levels.

Erich Sixt, CEO Sixt SE: “Even in this crisis, which is absolutely none of our doing, SIXT is a company invested with a strong culture of innovation and an unbending will to grow, and thanks to nine record years in a row we are now on a rock solid financial platform. With an equity ratio of 23.9% and high liquidity reserves of over EUR 800 million in cash as well as further available and non-utilised financing instruments, including a syndicated credit line of up to EUR 1.5 billion of which not a single Euro has been drawn down, SIXT is well ahead of the industry’s average. Despite these challenging conditions, we did everything over these last few weeks and months to be optimally prepared for the gradual upturn in demand. One key factor for this will remain the time when air traffic, so important for business travellers and tourists, will pick up again. SIXT, though, will not stand idle but will create further growth potential for itself in this ever more consolidating market, by utilising for our business the digital transformation that Corona has accelerated still further, by generating new mobility concepts for the changing requirements of our customers and by consistently expanding the mobility platform SIXT ONE.”

Despite the crisis: implementation of strategic key projects for further growth
The company has set the course on important directions for future growth once the worldwide pandemic subsides. Thus, and in spite of the Corona crisis, SIXT used the last few weeks and months to set a number of strategically important key projects on their track. The focus remains on the internationalisation and digitisation of business, above all in the growth market of the USA.

  • At the beginning of July SIXT took over ten strategically important airport locations in the USA with a market volume of USD 3.4 billion from the insolvent American enterprise Advantage Rent a Car. This enables SIXT to rent out its premium fleet directly at airport terminals among others at the airports of Boston, all three New York airports, Maui, Denver, Houston, Orlando and Las Vegas. SIXT is now present at 25 of the 30 most important airports in the world’s biggest vehicle rental market, which offers revenue volumes of over USD 32 billion[2], and lays the groundwork for further significant growth after the Corona crisis.
  • By launching the new vehicle subscription service SIXT+ in June, SIXT is reacting not only to changed mobility requirements of many people, who rather use than own a car, but also penetrates a growth market with future potential. According to the Center Automotive Research (CAR) of the university Duisburg-Essen the currently just around 20,000 vehicle subscription contracts in Germany have a market potential to expand into over one million such contracts over the next ten years. SIXT+ is a flexible all-inclusive vehicle subscription with a monthly termination option at an attractive price-performance ratio. The monthly instalment covers all ancillary costs such as third-party liability, maintenance, wear and tear as well as road-safety registration. SIXT is the first company worldwide to offer attractive mobility solutions to cover every need with its services SIXT rent, SIXT share, SIXT ride and now also SIXT+ all coming under the roof of one single app.
  • Also in June, SIXT kicked off its carsharing-Service SIXT share in the Netherlands – with a very encouraging response. In the metropolitan areas of Amsterdam, Rotterdam and Den Haag SIXT is offering a purely electrified fleet of top-notch electric vehicles. Users can not only rent the vehicles in the three cities, but also commute between the metropolitan areas and return the vehicles in any of the three business areas as well as at all SIXT offices in the Netherlands. In Germany, SIXT also stocked up its carsharing fleet substantially since the start of the Corona crisis and demand is now outstripping the levels prior to Corona.
  • As announced on 21 February 2020 the sale of the 41.9% investment Sixt SE held in Sixt Leasing SE was successfully completed on 15 July 2020. Purchaser is the Hyundai Capital Bank Europe GmbH, a joint venture of Santander Consumer Bank Aktiengesellschaft and the Hyundai Capital Services Inc. This step means SIXT is now fully focused on the high-potential business of its Mobility Business Unit.

Alexander Sixt, Managing Board member of Sixt SE: “As much as we were hit by this unparalleled crisis, we are firmly resolved to come out stronger. A strict and comprehensive savings programme has enabled us to lower our entire cost basis by over EUR 200 million in Q2. This equals a reduction of 35%. This also shows once more the high adaptability of our business model and the variability of our cost basis. We have already reduced material and personnel costs, which are set to shrink by over EUR 150 million on an annualised basis, by over half the targeted volume, by cutting approx. EUR 100 million in Q2 alone. We continued to drive forward our international expansion very consistently. The extremely pragmatic takeover of 10 new airport locations in the USA is a key growth step in the worldwide biggest vehicle rental market. We now have a presence there at 25 of the 30 top airports and can service a significantly expanded business segment with much stronger availability. At the same time we also made strides forward with the market launch of the vehicle subscription model SIXT+. This entry into the vehicle subscription market promises to hold market volumes of up to one million contracts over the next ten years. The start of SIXT share outside Germany is also a massive step forward for digitisation.
I want to express my sincere gratitude to all employees, who have performed exceptionally in this crisis.”

Key Group figures for H1 and Q2 2020

Preliminary Note: Where not mentioned otherwise, the following key figures for period 1 January 2020 to 30 June 2020 cover the Mobility Business Unit as well as the other continued activities, which are not categorised as part of the Mobility Business Unit. Pursuant to IFRS 5 the assets and liabilities, as well as the post-tax earnings of the discontinued Leasing Business Unit are listed separately in the Balance Sheet and Profit and Loss Statement. For comparative purposes, the previous year figures are adjusted accordingly where required.

  • Consolidated revenue for H1 came to EUR 717.0 million and was thus 36.7% below the same figure last year (EUR 1.13 billion). While SIXT had recorded revenue performance during the first two months clearly above last year’s level, the effects of the Corona crisis had a massive impact as of March and therefore in particular the second quarter. As government measures to contain the pandemic came fully into force in almost all countries, such as travel warnings, border-crossing restrictions, stay-at-home orders and mobility restrictions for citizens, plus the shutdown of multiple economic industries, business travel, above all cross-border travel, came to a complete halt for some time.
  • Earnings before taxes (EBT), the Sixt Group’s principal indicator for measuring business success, came to EUR -122.9 million for the first six months of the year after EUR +113.4 million for the first half year of 2019. The negative result reflects the significant revenue and earnings loss due to the Corona pandemic, which could not be compensated by the fleet reduction and lower material and personnel costs.
  • For the first six months SIXT recognises post-tax earnings from continuing operations of EUR-114.6 million (H1 2019: EUR 76.7 million).
  • In the second quarter of 2020 Group revenue came to EUR 228.5 million (Q2 2019: EUR 627.1 million; -63.6%). Group EBT amounted to EUR -117.7 million (Q2 2019: EUR +73.3 million).
  • Massive fleet reduction: From January to June 2020 the Group added around 84,400 vehicles to the rental fleet (H1 2019: 148,800 vehicles) with a total value of EUR 2.6 billion (H1 2019: EUR 4.3 billion). This equals a decline of 43.3% in the number of vehicles. The average stock of the rental fleet in Germany and abroad came to 116,600 vehicles during the first half of the year, some 17.9% less than in the same period last year (around 142,000).

Developments in fiscal 2020
Due to the current market conditions prevailing in the travel sector and in air travel in particular, which are strongly influenced by the COVID-19 pandemic, it is impossible to make a reliable estimate of the Sixt Group’s revenues and earnings development for the upcoming months. Therefore, the forecast for 2020 and the outlook for 2021 can no longer be maintained.

Both the Group’s operating revenue as well as the EBT achieved in the first half of 2020 are in line with previous expectations. Nevertheless, the development of revenues in July 2020 and the reservations received so far for the current quarter indicate that the recovery in demand at airports assumed for the crucial third quarter of 2020 will be weaker than Sixt SE had previously expected.

As it is currently impossible to foresee over what period and to what extent the Company can expect further adverse effects from the COVID-19 pandemic and the resulting uncertainties continue to increase significantly, the Company will not issue a new forecast for the financial year for the time being as already announced by the Managing Board of Sixt SE on 4 August 2020.

SIXT SE publishes its Half-Year Interim Statement as of 30 June 2020 today on its website at in the section “Financial Reports.”

About SIXT:

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 is offering a uniquely integrated service of mobility across the fields of vehicle rental, carsharing, chauffeur services and vehicle subscription. The products can be booked through one single app, which also integrates the services of renowned mobility partners. SIXT has a presence in around 110 countries around the globe. The Company is characterised by consistent customer orientation, a lived culture of innovation with a strong technological expertise, the high share of premium vehicles in its fleet and an attractive price-performance ratio. The Sixt Group generated revenue of EUR 3.31 billion in 2019 and ranks as one of the most profitable mobility companies worldwide. SIXT SE is the parent company of the Group and has been listed on the Frankfurt stock exchange since 1986 (German WKN ordinary share: 723132, WKN preference share: 723133).



Stefanie Seidlitz
SIXT Central Press Office
Tel.: +49 (0) 89 / 7 44 44 – 5330


The SIXT Group at a glance
(Data according to IFRS; rounding differences may occur)

Revenue development     Change     Change
in EUR million H1 2020 H1 2019 in % Q2 2020 Q2 2019 in %
Operating revenue 711.3 1,130.1 -37.1 225.8 625.7 -63.9
Mobility Business Unit 711.3 1,130.1 -37.1 225.8 625.7 -63.9
Thereof rental revenue 626.5 1,020.0 -38.6 197.5 569.5 -65.3
Thereof other revenue from
rental business
84.8 110.1 -23.0 28.3 56.2 -49.7
Other revenue 5.7 2.7 >100 2.7 1.4 +94.8
Consolidated revenue 717.0 1,132.9 -36.7 228.5 627.1 -63.6


Earnings performance     Change     Change
in EUR million H1 2020 H1 2019 in % Q2 2020 Q2 2019 in %
Fleet expenses 220.8 282.9 -21.9 79.4 157.6 -49.6
Personnel expenses 182.9 222.4 -17.7 68.3 114.8 -40.5
Depreciation and amortisation expense 238.9 232.5 +2.7 121.4 129.7 -6.3
Net other operating income/expenses -178.5 -268.3 -33.5 -67.7 -145.0 -53.3
Earnings before net finance costs and taxes (EBIT) -104.1 126.8 >-100 -108.3 80.1 >-100
Net finance costs -18.8 -13.4 +40.0 -9.5 -6.8 +39.6
Earnings before taxes (EBT) -122.9 113.4 >-100 -117.7 73.3 >-100
Thereof Rental Mobility -122.6 113.2 >-100 -117.9 72.9 >-100
Income tax expense -8.3 36.7 >-100 -12.8 24.3 >-100
Result from continuing operations -114.6 76.7 >-100 -105.0 49.0 >-100
Result from discontinued operations, net of taxes 59.3 10.4 >100 33.5 4.7 >100
Consolidated profit/loss -55.3 87.1 >-100 -71.5 53.8 >-100
Earnings per share (in EUR) -1.93 1.73   -1.94 1.09  


Other key figures for the Group 30 Jun. 2020 31 Dec. 2019 Change in %
Total assets (in EUR million) 6,379.5 6,249.4 +2.1
Rental vehicles (in EUR million) 2,462.4 3,033.4 -18.8
Equity (in EUR million) 1,521.8 1,592.2 -4.4
Equity ratio (in %) 23.9 25.5 -1.6 points
  H1 2020 H1 2019 Change in %
Investments (in EUR billion)3 2.59 4.26 -39.1
Average number of rental vehicles (Group) 116,600 142,000 -17.9


[1] Passenger traffic April-June according to German airport federation ADV

[2] Source: Euromonitor International, Travel 2019, November 2019

3 Value of vehicles added to the rental fleet

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