Sixt SE / Key word(s): Quarter Results
19.11.2013 / 07:31
Pullach, 19 November 2013 – Sixt SE, Germany’s largest car rental company and one of Europe’s leading mobility service providers, recorded a very good business performance for the first nine months of 2013, exceeding the company’s own expectations. The performance can be put down to an exceptional strong third quarter, which saw buoyant domestic demand from business and private customers in the Vehicle Rental Business Unit as well as ongoing dynamic growth abroad.
Benefiting from the positive developments on the demand side, a high utilization of the rental fleet and lower refinancing costs, the Sixt Group recorded earnings before taxes (EBT) of EUR 114.6 million for the first nine months, which is 10.2% more than the same period last year. At EUR 56.8 million, Q3 generated the strongest quarterly result in the company’s history. As a consequence, the Managing Board has upgraded its projections for the full year 2013.
Erich Sixt, Chairman of the Managing Board of Sixt SE: ‘Business performance for the second half of the year has been very encouraging and exceeds our expectations. Once again, Sixt is vindicating its top position for profitability in the industry. Even today it is highly likely that we will close out 2013 with a very good result.’
Group performance in the first nine months of 2013:
Group developments in the third quarter of 2013
Cautious fleet policy
Further increase in equity
Outlook for full-year 2013
Based on the rebounding domestic demand in the Vehicle Rental Business Unit and the continued dynamism in international expansion, the Board expects to see a slight growth in rental revenues. In the Leasing Business Unit, Management also expects marginally higher leasing revenues.
In the wake of the strong third quarter, Sixt expects the Group’s EBT to close out above last year’s figure of EUR 118.6 million, consolidating the company’s very good earnings position. The company will stay the course and stick to the principle of giving preference to adequate margins over volume growth (‘Earnings before growth’) as well as maintaining a strictly demand-driven fleet policy.
Developments in the operating business units
During the first nine months of 2013 the Rental Business Unit generated rental revenue of EUR 774.6 million, a gain of 6.7% on the same figure from the previous year’s period (EUR 725.7 million). Rental revenue in Germany for the first nine months was EUR 453.2 million, or almost on a par with last year’s level (9 months 2012: EUR 454.7 million; -0.3%). Thanks to Sixt’s ongoing expansion measures in Europe and the USA, rental revenue outside of Germany climbed 18.6% and amounted to EUR 321.4 million (9 months 2012: EUR 271.0 million).
DriveNow continues its encouraging development. The carsharing joint venture with BMW now has around 185,000 registered users already and since the start of November has now also been represented in Hamburg as its fifth location.
For the reporting period from January to September the Business Unit’s EBT came to EUR 104.6 million, some 11.6% higher than the corresponding period the year before (EUR 93.8 million). This result includes start-up costs for various expansion activities, such as the opening of new stations in the USA and Europe. With a further improvement in its return on sales to 12.4% Sixt’s Vehicle Rental Business Unit continues its long-term targeted yield level of at least 10% (9 months 2012: 11.8%)
In a continually competitive environment for moveable asset leasing, the business unit managed to increase its contract portfolio at home and abroad (without franchise partner) to 74,000 as of 30 September 2013, 19% more than at the end of 2012 (62,200). This growth is essentially attributable to fleet management, mobility consulting and the private customer business transactions.
Leasing revenue for the first nine months of the year climbed 3.4% to EUR 292.2 million (9 months 2012: EUR 282.6 million). Both German and foreign operations maintained this growth. The Leasing Business Unit’s total revenue (including the revenues from the sale of used leasing vehicles) amounted to EUR 405.4 million after nine months (9 months 2012: EUR 408.1 million; -0.6%).
The business unit improved its EBT to EUR 14.1 million after EUR 12.8 million recorded at the end of Q3 in 2012. Despite a still tense situation with margins in the leasing industry, the business unit’s revenue margin was 4.8% and thus higher than the same period last year (4.5%) and close to the long-term target of 5%.
End of Corporate News
19.11.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG.
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|Phone:||+49 (0)89 74444-5104|
|Fax:||+49 (0)89 74444-85104|
|ISIN:||DE0007231326, DE0007231334 Sixt Vorzüge, DE000A1K0656 Sixt Namensaktien|
|Listed:||Regulierter Markt in Frankfurt, München; Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, Stuttgart|
|End of News||DGAP News-Service|