Sixt earns nearly half a billion Euro after the first nine months of 2018
- Earnings before taxes at EUR 482 million; EUR 286 million adjusted for the sale of DriveNow
- Consolidated operating revenue up 13.6% after nine months; +17.5% in Q3
- Growth abroad picks up even more
- Investment in fleets already at approx. EUR 5.5 billion after nine months
- Outlook for full fiscal year 2018 raised in October
Pullach, 15 November 2018 – After recording its best ever quarterly operating results, the Sixt Group has already outperformed the previous year’s full annual results after nine months, even when excluding the one-time effect from the sale of its stake in DriveNow. Including this non-recurring effect, the international mobility service provider recorded consolidated earnings before taxes (EBT) for the period January to September 2018 of EUR 481.6 million, nearly half a billion Euro.
Erich Sixt, CEO of Sixt SE: “Operating business performance so far, and in particular the third quarter, has exceeded all of our expectations. Sixt is growing across the board, in all customer groups, and in particular abroad but also in Germany. We are confident to achieve yet another record year in 2018.”
Key Group figures for the first nine months 2018
- Total Group revenue increased by 13.3% to EUR 2.22 billion.
- Consolidated operating revenue (excluding revenue from the sale of returned leasing vehicles from the Leasing Business Unit) increased by 13.6% to EUR 1.97 billion.
- Operating revenue generated in the Vehicle Rental Business Unit recorded a 15.2% increase to EUR 1.62 billion. As in previous years, foreign operations proved to be the main growth driver, recording a revenue gain of 22.8% to EUR 951.2 million. Almost all foreign subsidiaries saw healthy double-digit growth rates and accordingly gained market share. Sixt benefitted from its clear focus on private customers and tourists in key holiday destinations such as Spain, France, Italy and the US. The share of foreign business in the operating rental revenue therefore increased by 3.6 percentage points to 58.5%. In Germany, Sixt recorded a growth in operating rental revenue of 5.9% to EUR 673.7 million.
- Operating leasing revenue (without proceeds from vehicle sales) for the first nine months amounted to EUR 349.0 million, a gain of 6.5%.
- The Group’s EBT, the Sixt Group’s principal performance indicator, amounted to EUR 481.6 million compared to EUR 224.2 million for the first nine months of 2017. This figure includes the non-recurring effect in the amount of EUR 196.1 million from the sale of the Company’s stake in DriveNow, which had been completed during the first quarter of 2018. Excluding this amount, EBT totalled EUR 285.5 million, a gain of 27.4% which significantly exceeded the growth in revenue. As such, Sixt has already achieved the EBT level of the full fiscal year 2017 (EUR 287.3 million) after the third quarter 2018.
Key Group figures for Q3 2018
- Consolidated operating revenue for Q3 increased by 17.4% to EUR 874.6 million
- The Group’s operating revenue increased by 17.5% to EUR 789.0 million.
- EBT growth of 27.3% significantly outperformed revenue growth and climbed to EUR 154.7 million.
From January to September 2018 Sixt added around 200,300 vehicles to the rental and leasing fleets (9M 2017: approx. 181,100 vehicles) with a total value of EUR 5.47 billion (9M 2017: EUR 4.86 billion). This corresponds to an increase of 10.6% in the number of vehicles and 12.7% in the investment volume. Despite significantly higher demand and the strong growth in revenue, Sixt maintained its cautious fleet policy and whilst managed to increase utilisation levels for the rental fleet.
Outlook for the full year 2018
In light of the strong business performance of the third quarter, which substantially outperformed last year’s comparative period, as well as the developments seen until that time in the current fourth quarter, the Managing Board of Sixt SE raised its earnings expectations and revenue forecast for the full fiscal year 2018 on 18 October 2018.
Sixt now expects the full fiscal 2018 to see a very strong increase in consolidated EBT compared to the the previous year (2017: EUR 287.3 million). This does not include the earnings contribution generated from the sale of the stake in DriveNow.
Regarding consolidated operating revenue the Managing Board now expects to see a strong increase compared to the previous year (EUR 2,309.3 million).
Sixt SE publishes its Group Quarterly Statement as at 30 September 2018 today on its website http://ir.sixt.eu under the section “Financial Reports”.
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 Sixt Group at a glance
(Figures according to IFRS; rounding differences may occur)
|in EUR million||9M 2018||9M 2017||in %||Q3 2018||Q3 2017||in %|
|Rental Business Unit||1,624.9||1,410.8||+15.2||670.4||562.4||+19.2|
Thereof rental revenue
Thereof other revenue from rental business
|Leasing Business Unit||591.1||545.3||+8.4||202.6||181.8||+11.4|
Thereof leasing revenue
Thereof other revenue from leasing business
Thereof sales revenue
|in EUR million||9M 2018||9M 2017||in %||Q3 2018||Q3 2017||in %|
|Fleet expenses and cost of lease assets||744.8||663.7||+12.2||269.1||239.0||+12.6|
|Depreciation and amortisation expense||405.3||396.3||+2.3||146.2||142.3||+2.7|
|Net other operating income/expenses||-450.0||-383.9||+17.2||-185.8||-138.6||+34.0|
|Earnings before interest and taxes (EBIT)||313.8||250.4||+25.3||163.6||131.3||+24.6|
|Net finance costs||167.9||-26.2||>-100||-8.9||-9.8||-9.2|
|Earnings before taxes (EBT)||481.6||224.2||>+100||154.7||121.6||+27.3|
Thereof Rental Business Unit
Thereof Leasing Business Unit
|Income tax expense||81.1||64.2||+26.3||34.9||34.5||+1.2|
|Other key figures for the Group||30 Sep. 2018||31 Dec. 2017||Change in %|
|Total assets (in EUR million)||5,585.2||4,491.0||+24.4|
|Rental vehicles (in EUR million)||2,828.8||2,076.0||+36.3|
|Lease assets (in EUR million)||1,253.1||1,219.2||+2.8|
|Equity (in EUR million)||1,407.9||1,177.9||+19.5|
|Equity ratio (in %)||25.2||26.2||-1.0 Points|
|9M 2018||9M 2017||Change in %|
|Investments (in EUR billion)1||5.47||4.86||+12.7|
|Average number of rental vehicles (Group)||131,700||114,500||+15.0|
|Number of rental offices (worldwide)2||2,166||2,283||-5.1|
|Number of leasing contracts as at 30 Sep. (Group)||131,300||130,300||+0.8|
1 Value of vehicles added to the rental and leasing fleets
2 Incl. franchise countries