Sixt SE / Key word(s): Half Year Results/Quarter Results
2015-08-20 / 07:31
Sixt Group accelerates growth during first half of 2015 and rises full-year outlook
Pullach, 20 August 2015 – The Sixt Group recorded strong growth during the first half of 2015, that surpassed expectations. The improvement was mainly driven by higher rental revenues in the Vehicle Rental Business Unit. In the second quarter, growth dynamism picked up against the first three months. For the first half of 2015 Sixt recorded consolidated operating revenue of EUR 886.9 million, an increase of 16.7% against the same period last year. Earnings before taxes (EBT), which are the key success figure of the international mobility provider, climbed 10.8% to EUR 74.8 million, despite the significantly higher expenditures incurred for expansion measures abroad. In view of the remarkably business performance the Management Board revised expectations for the whole of fiscal year 2015 upwards.
Erich Sixt, Chairman of the Managing Board of Sixt SE: “Sixt was exceptionally successful during the first half of the year. We are growing rapidly with our vehicle rental business outside Germany and are continuously gaining market shares. Even at home, where we are already the clear market leader, we managed to raise rental revenues by almost 10%. This shows the strength of our Company. The IPO of Sixt Leasing AG has meant that in the second quarter we created the conditions, for both Business Units to realise their ambitious growth plans without having to compete internally for equity.”
Group performance in the first half of 2015
Group developments in the second quarter of 2015
Higher investments in the rental and leasing fleet
IPO of Sixt Leasing AG strengthens Group equity
As per the end of June 2015 the equity ratio stood at 26.7%. This means it was higher than on 31 December 2014 (26.3%) and substantially above the long-term minimum target of at least 20%.
Outlook for the whole of 2015
Developments in the operating Business Units
As per 30 June 2015 the number of Sixt rental stations came to 2,176 worldwide (Company offices and franchisees), which was on the level at the end of 2014 (2,177 stations). The further expansion in the number of Sixt’s own stations in the Sixt corporate countries, above all in the USA, Spain and the UK, was offset by a smaller number of stations in the franchise countries due to the reorganisation of some markets. The number of rental offices in Germany as per the end of June 2015 increased to 507 (31 December 2014: 483 stations).
In the first six months of 2015 Sixt continued to drive forward with its expansion in the United States, the world’s biggest rental market. As per 30 June 2015 the number of stations had gone up to 61 compared to 50 at the end of 2014. Another 20 stations are being planned for the end of the current fiscal year.
The average number of vehicles in the Vehicle Rental Business Unit (in Germany and abroad, excluding franchisees) for the first six months of the year came to around 91,200 vehicles, an increase of 15.2% against the average figure for the first six months of 2014 (79,200 vehicles). The increase reflects the substantially stronger demand as well as the growth outside of Germany.
The Business Unit’s rental revenue increased by 20.8% in the first six months of 2015 to EUR 613.4 million (H1 2014: EUR 507.7 million). The main driver of this growth was the foreign operations sector, which climbed 36.3% to EUR 286.7 million (H1 2014: EUR 210.4 million). In all the large rental markets, such as the USA, France, Spain and the UK, Sixt continued to record double-digit growth rates. In Germany Sixt’s vehicle rental business benefited from invigorated sales activities and the more friendly economic climate overall. Therefore, rental revenues climbed by 9.9% to EUR 326.7 million (H1 2014: EUR 297.3 million). All in all the Vehicle Rental Business Unit generated revenue increases of 21.8% during the first six months, reaching EUR 676.1 million (H1 2014: EUR 555.3 million).
DriveNow, the premium carsharing joint venture operated together with the BMW, continued its strong growth during the first half of the year. From the start of the year onwards it increased the number of registered users by 70,000 to around 460,000 as per 30 June 2015, and nearly 420,000 of these were users in Germany. This makes DriveNow the market leader among the free floating providers within Germany.
The Business Unit’s EBT was EUR 60.7 million, which represented – due to the additional expenditures – only a slight rise of 1.2% compared to last year’s figure of EUR 60.0 million.
As per the middle of the year the Business Unit’s total number of leases inside and outside Germany (excluding franchisees) was around 91,200 contracts. The decline from the figure recorded as per 30 June 2014 (96,200 contracts) was mainly due to the developments in the Fleet Management segment, as the second quarter of 2015 no longer included a key account with around 7,400 contracts. As had been duly communicated before, Sixt Leasing had not prolonged the agreement with that key account due to its insufficient profitability. However, the discontinuation of this customer relationship has had a positive influence on the profitability of the Fleet Management business. The contract portfolio of the Online Retail business segment recorded ongoing dynamic growth during the first half of the year.
Leasing revenue rose 2.8% during the first six months of 2015 to EUR 210.8 million (H1 2014: EUR 204.9 million). The sale of used leasing vehicles in the first half of 2015 generated revenue of EUR 113.1 million (H1 2014: EUR 61.0 million). This significant gain of 85.3% is essentially the result of the expansion of the contract portfolio over the course of the last few years. The end of the leasing contract leads to correspondingly more vehicle returns, and these vehicles come in with a certain time lag. The Leasing segment’s total revenues for the first six months of the year came to EUR 323.9 million, an increase of 21.8% against the same period last year (H1 2014: EUR 265.9 million).
EBT for the first half of 2015 shot up by 43.0% from EUR 9.6 million to EUR 13.7 million. The strong increase is due to the growing business volume as well as improvements in the margins of the contract portfolio and more advantageous refinancing costs.
The Sixt Group at a glance
Consolidated revenue development
Consolidated earnings development
Other key figures for the Group
2015-08-20 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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