SIXT generates new record revenue during first half-year and further extends its position as European market leader
- Expansion of US business and digital services increase operating revenue in the Mobility Business Unit by 18.1 percent, operating revenue of the Group increased by 14.3 percent
- Despite high investments EBT margin in the Mobility Business Unit remains at the long-term minimum target of at least 10 percent
- Strong revenue growth from customer gains on mobility platform SIXT ONE: SIXT share already established in three German cities, cooperation between SIXT ride and taxi centres intensified, service range extended by thousands of e-scooters
- SIXT confirms forecast for the whole of 2019
Pullach, 13 August 2019 – SIXT SE records the strongest six-month revenue figures in its corporate history. Europe’s biggest mobility service provider increased its operating revenue of the Group for the first six months of the current fiscal year by 14.3 percent. The performance of the Mobility Business Unit (previously: “Vehicle Rental Business Unit”) which bundles together the entire mobility services of the company SIXT rent, SIXT share and SIXT ride, grew even by 18.1 percent and here in particular the US business.
Erich Sixt, CEO of Sixt SE: “I am delighted with the best first six months in our company’s history. We managed to further extend our position as Europe’s leading mobility service provider. In the USA we are not only growing fastest, but also profitably. With over 270,000 vehicles our fleet is bigger than ever before. I am particularly pleased to see our customers responding so well to our digital and innovative mobility services. SIXT is developing here above our expectations, so that we might just invest even more into these markets of the future during the second half of the year.”
The key growth driver for the Mobility Business Unit was once again the USA, where SIXT managed to increase its revenue by around 30 percent. SIXT is already present at 19 of the 25 most important airports in the USA. The rental stations at the airports of Miami, Los Angeles and Orlando even rank among the five biggest stations in SIXT’s worldwide network. Europe’s market leader estimates that over the medium term it can generate a revenue potential of USD 1 billion in the USA, where the market volume stands at USD 31 billion. This means that the USA would replace Germany as the company’s biggest single market.
Alongside the international expansion, SIXT’s digital services are also developing very successfully, above all the SIXT App, which was launched in February. It integrates SIXT rent, SIXT share and SIXT ride, to offer customers individual mobility solutions from one single source. The popularity of the SIXT App is also evident from the app stores, where in the category “Travel” it is still well ahead of other vehicle rental and carsharing apps. Furthermore, during the period under review, the company successfully established its new car-subscription models on the markets and is very content with their development so far. SIXT wants to retain this growth speed in future. To this end, the company is investing record amounts in the fleet, the international expansion and the digital mobility concepts of the future. With a recorded EBT of EUR 127.5 million, the earnings situation during the first half-year remained almost stable at a high level.
Mobility platform SIXT ONE consistently extended
- In February 2019 SIXT launched its integrated mobility platform ONE together with the new SIXT app. Through the integration of SIXT rent, SIXT share and SIXT ride, customers receive access to more than 270,000 vehicles, some 1,500 partners and over 1.5 million drivers in well over 250 cities worldwide.
- The carsharing service, SIXT share, is so far available in Berlin, Hamburg and Munich. The ride hailing service, SIXT ride, concluded further partnerships with taxi centres in Germany, so that customers can book a taxi in various German cities at any time simply through their SIXT app. This service is also set to be expanded further.
- For the SIXT share segment, SIXT also integrated the first partners in the mobility platform ONE. Through the SIXT app, customers can make use of thousands of E-scooters across the entire country.
Overview of key Group figures for first six months of 2019
- Operating revenue (excluding revenue from the sale of returned leasing vehicles) climbed 14.3% to EUR 1.35 billion (H1 2018: EUR 1.18 billion).
- The operating revenue for the Mobility Business Unit registered a rise of 18.1% to EUR 1.13 billion (H1 2018: EUR 954.5 million). The main driver of growth was foreign operations, which saw revenue climb 26.3% to EUR 675.5 million (H1 2018: EUR 534.8 million). Thus, the share of foreign operations in the Business Unit’s revenue for the first time scaled the 60 percent mark. Key growth market was the USA, which continues to offer substantial potential. During the first half of the year, SIXT managed to expand revenue in this market by around 30%. At 7.7% growth in Germany, SIXT is still outperforming the market, generating revenue of EUR 452.2 million (H1 2018: EUR 419.7 million).
- The Leasing Business Unit reports operating revenue for the first half-year 2019 of EUR 226.4 million, some 1.7% less than in the same period the year before (EUR 230.3 million). At around 126,200 contracts, however, the portfolio of contracts was again above the figure recorded at the end of the first quarter 2019 (125,600 contracts).
- The SIXT Group’s total revenue (including the proceeds from vehicle sales in the Leasing Business Unit) climbed to EUR 1.55 billion and was thus some 15.3% higher than the figure for the same period last year (H1 2018: EUR 1.35 billion).
- Consolidated earnings before taxes (EBT) for the first six months came to EUR 127.5 million, a decrease of 2.6% on the corresponding period last year (H1 2018: EUR 130.8 million). Last year’s figure is adjusted by the one-off income from the sale of the stake in DriveNow (reported figure: EUR 326.9 million). The reason for this is record investment in digital services, in the vehicle fleet and in marketing measures. Despite these investments the EBT margin of both Business Units is within the long-term target level of at least 10% (Mobility) respectively 6% (Leasing).
- Record investment in the vehicle fleet: From January to June 2019 SIXT added around 157,600 vehicles to the rental and leasing fleet (H1 2018: approx. 148,800 vehicles) with a total value of EUR 4.45 billion (H1 2018: EUR 4.02 billion). The number of vehicles climbed 5.9%, while the investment volume increased by as much as 10.7%. For the whole of the year the Managing Board expects to see record investments of around EUR 8 billion.
Outlook for the whole of 2019 confirmed
In view of the development of the first six months, the Managing Board is affirming its economic targets for the full fiscal year 2019. Subject to the general economic climate not worsening substantially, the Board compared with last year’s figures expects the SIXT Group to generate significantly higher consolidated operating revenue as well as a stable Group EBT (discounting the sale of the stake in DriveNow last year).
SIXT SE today publishes its Interim Report as of 30 June 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)
|in EUR million||H1 2019||H1 2018||in %||Q2 2019||Q2 2018||in %|
|Mobility Business Unit||1,127.7||954.5||+18.1||624.6||529.2||+18.0|
Thereof rental revenue
Thereof other revenue from rental business
|Leasing Business Unit||421.8||388.5||+8.6||191.9||189.2||+1.4|
Thereof leasing revenue
Thereof other revenue from leasing business
Thereof sales revenue
|in EUR million||H1 2019||H1 2018||in %||Q2 2019||Q2 2018||in %|
|Fleet expenses and cost of lease assets||558.4||475.7||+17.4||276.3||238.6||+15.8|
|Depreciation and amortisation expense||327.1||259.1||+26.2||177.2||136.0||+30.2|
|Net other operating income/expenses||-275.5||-264.2||+4.3||-148.3||-149.5||-0.8|
|Earnings before net finance costs and taxes (EBIT)||146.7||150.2||-2.3||90.2||90.9||-0.8|
|Net finance costs||-19.3||176.8||>-100||-9.8||-8.2||+19.0|
|Earnings before taxes (EBT)||127.5||326.9||-61.0||80.4||82.7||-2.8|
Thereof Mobility Business Unit
Thereof Leasing Business Unit
|Income tax expense||40.4||46.2||-12.6||26.6||16.5||+60.8|
|Other key figures for the Group||30 Jun. 2019||31 Dec. 2018||Change in %|
|Total assets (in EUR million)||6,744.4||5,193.3||+29.9|
|Rental vehicles (in EUR million)||3,700.0||2,605.2||+42.0|
|Lease assets (in EUR million)||1,137.6||1,204.4||-5.5|
|Equity (in EUR million)||1,424.2||1,442.0||-1.2|
|Equity ratio (in %)||21.1||27.8||-6.7 Points|
|H1 2019||H1 2018||Change in %|
|Investments (in EUR billion)1||4.45||4.02||+10.7|
|Average number of rental vehicles (Group)||142,000||121,100||+17.3|
|Number of leasing contracts as at 30 Jun. (Group)||126,200||133,800||-5.7|
1 Value of vehicles added to the rental and leasing fleets