SIXT posts best quarterly operating result in the company’s history in third quarter and is heading for a full-year result that exceeds the record year 2019
- Earnings before taxes (EBT) for the international mobility services provider in the third quarter amounted to EUR 253.2 million, a 72.8% increase over the same quarter in the pre-corona year 2019 – double-digit percentage growth in earnings in the regional segments Germany, Europe and USA
- Segment Europe increases its Corporate EBITDA by 46.2% to EUR 151.8 million in the third quarter compared to 2019 and delivers by far the largest earnings contribution, Corporate EBITDA of EUR 74.2 million in the segment Germany up 27.2% on the comparable pre-corona quarter of 2019
- Growth engine USA: Revenue in the segment North America rose by 29.0% compared to the third quarter of 2019, Corporate EBITDA more than quintupled to EUR 62.3 million in the same period
- Group operating revenue in the third quarter of EUR 795.2 million up 73.0% on the previous year and even slightly above the level of the third quarter of 2019
- Strategic investments in further internationalisation during the corona crisis, new products and customer-friendly digital processes are now increasingly paying off in the upswing phase
- Equity ratio in the Group improved again to 35.0%
- Unchanged positive booking trend in the fourth quarter: Managing Board confirms record forecast for the full year 2021
Pullach, 11 November 2021 – With consolidated earnings before taxes (EBT) of EUR 253.2 million, the international mobility services provider SIXT achieved by far the best quarterly operating result in the company’s history in the third quarter of 2021. Compared to the same quarter of the previous year (EUR 66.0 million), this represents nearly a fourfold increase, and compared to the third quarter of the pre-corona year 2019, an increase of 72.8%. At EUR 795.2 million, consolidated operating revenue in the third quarter was 73.0% higher than in the same period of the previous year (EUR 459.7 million) and even 2.2% higher than in the third quarter of 2019 (EUR 778.2 million).
A look at the nine-month period also paints a positive picture: With EBT of EUR 317.4 million, SIXT has already earned more in the first nine months of this year than in the entire pre-corona year 2019 (EUR 308.2 million). Compared to the first nine months of 2019, the increase amounted to 22.1%; in the same period of the previous year 2020, negative EBT of EUR 56.9 million had still been incurred. In the first nine months, consolidated operating revenue increased by 38.4% to EUR 1.62 billion compared to the same period of the previous year.
In achieving these significant increases in revenue and earnings, SIXT has benefitted from the strong demand for mobility that continued into the fall, particularly in the USA and European markets. Besides vacation travel, the business travel segment has also shown a clear recovery: for example, global B2B revenue in August and September 2021 was already higher again than the revenue in the same periods in 2019. In line with this development, the International Air Transport Association (IATA) also reported a recovery in passenger volumes. The high demand was accompanied by an increase in market prices throughout the car rental industry.
Internationalisation strategy shows effect and pays off
In addition to these external influencing factors, the strategic growth measures implemented by SIXT during the corona pandemic had a particularly positive effect: The mobility service provider recorded rapid growth in the US market in particular. For the third quarter, operating segment revenue nearly tripled year-on-year to EUR 175.5 million, with revenue up 29.0% compared to the third quarter of 2019. For the first nine months, SIXT reported that its sales in the United States had doubled to EUR 413.1 million (first nine months of 2020: EUR 203.6 million), an increase of 11.3% compared to the period January to September 2019. The ten stations at important commercial airports, which SIXT took over and realigned in 2020, have already made a noticeable contribution to growth. As a result, its position as the fourth largest car rental company in the USA with 94 locations has been steadily expanded. At Miami Airport, SIXT was even able to repeatedly achieve market leadership on a monthly basis, which underscores the increase in market share. This is accompanied by a rise in brand awareness and customer satisfaction overseas: only at the beginning of October, SIXT was awarded the Readers’ Choice Award as a Top 3 car rental company in the USA by the renowned travel magazine Condé Nast Traveler.
Long summer season in Europe
In other European countries, SIXT experienced high demand into the fall, especially in holiday destinations such as France, Spain and Italy. As a result, SIXT achieved operating revenue growth of 82.3% to EUR 386.7 million in the segment Europe (excluding Germany) in the third quarter (third quarter of 2020: EUR 212.1 million). In the first nine months, revenue in the segment Europe (excluding Germany) amounted to EUR 681.8 million, an increase of 51.2% compared to the same period of the previous year (first nine months of 2020: EUR 450.8 million). The segment thus made by far the largest contribution to the operating Group result in the third quarter and also in the nine-month period.
At EUR 233.1 million, operating revenue in the segment Germany rose at a slightly more subdued pace in the third quarter compared to the other two segments (+24.1% compared to the third quarter of 2020) due to business travel only starting to pick up again. The earnings situation improved significantly in Germany, both compared to the previous year and compared to 2019.
Fleet expanded despite tight procurement markets
In the wake of rising demand, SIXT has managed to expand its rental fleet despite the current shortage of vehicles to serve the growing demand as well as possible and to expand its market shares at home and abroad. For example, while the number of new car registrations in Germany in September 2021 was still 19.5% below the 2019 level, SIXT is only 8.4% away from the level of the comparable quarter in 2019 in terms of fleet size at the end of the third quarter. There were an average of around 152,000 vehicles in SIXT’s global fleet in the third quarter (Average third quarter 2020: 120,000 vehicles).
Outlook – record result in sight for the full year 2021
Based on the business development in the third quarter and the continued positive business situation with a sustained good booking situation, the Managing Board raised the forecast for the full year 2021 on 20 October: SIXT expects consolidated operating revenue of between EUR 2.1 billion and EUR 2.3 billion and consolidated EBT of between EUR 390 million and EUR 450 million. This would significantly exceed the EBT of EUR 308 million from the strong pre-corona year 2019.
Q3 2021 – Key Group figures
- Consolidated revenue from July to September 2021 amounted to EUR 799.0 million, an increase of 72.7% compared to the same period of the previous year (EUR 462.6 million). SIXT achieved very strong growth in the USA and Europe in particular. The foreign share reached 70.4% in the third quarter (Q3 2020: 59.0%)
- Consolidated earnings before taxes (EBT) climbed from EUR 66.0 million to EUR 253.2 million
(+ 283.8%) – by far the best quarterly operating result in the company’s history. The operating return on revenue reached the record value of 31.8% and was thus considerably above the average level of past years (Q3 2020: 14.4%). Key factors influencing the increase in earnings included the strong demand in the USA and Europe, the increased market price level and the success of the expansion measures implemented.
- Corporate EBITDA, which represents the Group’s operating result including interest income and depreciation on rental vehicles, reached EUR 287.9 million in the third quarter, compared to EUR 98.7 million in the same quarter of 2020.
9M 2021 – Key Group figures
- In the first nine months of this year, consolidated revenue increased by 38.2% to EUR 1.63 billion (9M 2020: EUR 1.18 billion). The foreign share reached 67.3% (9M 2020: 55.7%).
- EBT improved by EUR 374.3 million from EUR -56.9 million to EUR 317.4 million compared to the same period of last year. The operating return on revenue reached the above-average value of 19.6% (9M 2020: -4.9%).
- Corporate EBITDA reached EUR 414.8 million after EUR 49.3 million in the first nine months of the previous year.
The comparative 2019 data have been adjusted and relate to continuing operations in each case.
Sixt SE is publishing its Group Quarterly Statement as at 30 September 2021 on its website at http://ir.sixt.com in the section entitled “Financial Publications.”
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+ on the mobility platform ONE 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 the SIXT app, which also integrates the services of its renowned mobility partners. SIXT has a presence in more than 100 countries around the globe. The company stands for consistent customer orientation, a lived culture of innovation with strong technological competence, a high proportion of premium vehicles in the fleet and an attractive price-performance ratio. In 2022, the Sixt Group achieved a record consolidated pre-tax earnings of EUR 550 million and a significant increase in consolidated revenues to EUR 3.07 billion. Sixt SE has been listed on the Frankfurt stock exchange since 1986 (ISIN ordinary share: DE0007231326, ISIN preference share: DE0007231334).