SIXT expects significant record annual result thanks to successful internationalisation strategy and continued high demand
- Strategic investments in relevant growth markets, especially the US, are paying off and, in combination with high demand, provide the mobility service provider with a strong third quarter with preliminary consolidated earnings before taxes of around EUR 253 million, well above market expectations
- Very positive business performance driven by market share expansion in Europe and especially the US, continued high demand and continued good market price levels due to vehicle shortages
- In light of the very strong third quarter and the positive booking run-up for the fourth quarter, SIXT is raising its earnings forecast for 2021 to between EUR 390 million and EUR 450 million, which is significantly higher than the record annual result of EUR 308 million in 2019
- Alexander Sixt, Co-CEO of Sixt SE: “The investments in our internationalisation and digitalisation strategy are increasingly paying off and we have been able to further expand our strong market position. My thanks and greatest respect go to our employees, in particular. Their tireless efforts have played an important role in enabling us to significantly exceed our record annual result in 2019 – despite the fact that the year 2021 is still dominated by corona.”
Pullach, 20 October 2021 – The continued strong travel activities and strategic investments in international growth markets have provided the international mobility service provider SIXT with a strong third quarter and a continued significantly more positive business development than expected by analysts. The company is benefitting from high demand into autumn in Europe and particularly in the US, as well as from a good market price level, which in turn is being driven by high demand and the limited availability of vehicles due to the shortage of semiconductors. Against this backdrop, Sixt SE raised its earnings forecast for the current financial year 2021 again today and expects to achieve a significant record annual result.
According to preliminary figures, consolidated operating revenue in the third quarter of 2021 is expected to be approximately EUR 795 million (Q3 2020: EUR 460 million), while consolidated earnings before taxes (EBT) reached approximately EUR 253 million (Q3 2020: EUR 66 million). The average analyst estimate for EBT in the third quarter of 2021 of EUR 226 million was thus significantly exceeded. The projected quarterly revenue is in line with market expectations (average analyst estimate: EUR 807 million).
Internationalisation strategy pays off
SIXT had also forged ahead with its internationalisation strategy in the corona crisis year by making strategic investments in important growth markets, such as the U.S. Through the acquisition of ten major airport stations in 2020, the company had expanded its position as the fourth largest car rental company in the US and is now represented at 25 of the 30 most important airports in the largest car rental market in the world. As recently as August 2021, SIXT managed to become the market leader at Miami Airport.
Strong third quarter and updated forecast indicate record annual result
The preliminary results for the third quarter and the continued positive business development with a good market price level are decisive for the further increase of the forecast for financial year 2021. In addition, the high demand both here in Germany and abroad has continued so far in the fourth quarter. Based on the preliminary results for the third quarter, the current business situation and a correspondingly updated forecast for the coming months, the Sixt SE Managing Board has decided to raise the forecast again for financial year 2021. SIXT now expects consolidated operating revenue of between EUR 2.1 billion and EUR 2.3 billion (previously: between EUR 2.0 billion and EUR 2.2 billion) and consolidated earnings before taxes (EBT) of between EUR 390 million and EUR 450 million (previously: between EUR 300 million and EUR 330 million). The latest average analyst estimate for the Sixt Group’s consolidated revenue for 2021 is in line with the forecast at EUR 2.21 billion. The forecast EBT range is significantly above market expectations (latest average analyst estimate: EUR 326 million).
Due to the volatile market environment, it is still difficult to predict how demand will develop. Furthermore, there is still great uncertainty as to the extent and duration of the supply bottlenecks caused by the semiconductor shortage at the vehicle manufacturers and the resulting effects on vehicle availability as well as the market price developments in the industry for the coming months.
Alexander Sixt, Co-CEO of Sixt SE: “The investments in our internationalisation and digitalisation strategy are increasingly paying off and we were able to further expand our strong market position. In the US in particular, we are continuing on our growth course and have managed to increase our market share. My thanks and greatest respect go to our employees, in particular. Their tireless efforts have played an important role in enabling us to significantly exceed our record annual result in 2019 – despite the fact that the year 2021 is still dominated by corona.”
Prof. Dr. Kai Andrejewski, CFO of Sixt SE: “Evidently, the catch-up effect on people’s travel and mobility after the long corona lockdown is much more pronounced than first expected. Together with the increased market price level, there is a positive effect on the earnings situation of our Group. The main drivers are, on the one hand, the high demand as well as the shortage of semiconductors and the resulting vehicle shortage, and on the other hand, catch-up effects in how prices are developing. To make a comparison: The prices of new cars alone have risen by nearly 30 percent from 2010 to 2019. Nevertheless, due to the volatile market environment, we would be well advised not to lose sight of the challenges we will face in the months ahead: The further course of customer demand is just as difficult to forecast as the extent and duration of the supply bottlenecks at vehicle manufacturers caused by the shortage of semiconductors and the associated impact on our business.”
Sixt SE will publish its third quarter results as of 30 September 2021 as planned on 11 November 2021.
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. Sixt SE has more than doubled its revenue in the Mobility business segment since 2009 and generated revenue of EUR 2.49 billion in this segment in 2019 (total group EUR 3.31 billion) 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).
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