DGAP-News: Sixt SE / Key word(s): Preliminary Results/Final Results
Sixt records outstanding fiscal year 2017, both for revenue and earnings - further profitable growth through focus on internationalisation and market launch of an innovative mobility platform
Pullach, 15 March 2018 - Sixt looks back on an outstanding fiscal year 2017, which saw all-high record figures for revenue and profitability as well as key strategic progress. Consolidated earnings before taxes (EBT) amounted to EUR 287.3 million, some 31.6% higher than the previous year's figure and significantly above the original expectations. Thanks to growth across the board at home and abroad, operating consolidated revenue climbed 8.7% to EUR 2.31 billion. Shareholders of the international mobility service provider are set to benefit from this business performance and excellent equity capitalisation with a total dividend for fiscal year 2017 of EUR 4.00 per ordinary share (previous year: EUR 1.65) and EUR 4.02 per preference share (previous year: EUR 1.67). This includes a special dividend of EUR 2.05 per share for both share classes. For the current fiscal year, the Managing Board expects to see further gains in revenue and earnings.
Sixt is presenting the preliminary key figures for the Group's annual financial statements for 2017 at the Company's annual press conference in Munich today.
Erich Sixt, CEO of Sixt SE: "2017 was not just another record year for Sixt, but brought a major leap forward. With a pre-tax return on operating revenue of over 12% we underlined our position as one of the world's most profitable mobility service providers. The positive contribution towards earnings from our business in the USA as well as the highly satisfactory development of our new corporate country Italy demonstrate that for Sixt expansion and growth go hand in hand with profitability. Especially the USA offers our Company enormous growth potential for the coming years. If we utilise it right, the USA will become the single biggest market for Sixt in a few years, even ahead of Germany."
Successful international expansion continues
At the end of 2017 Sixt had over 51 stations in the USA. During the current year a new branch office was opened at the airport in San Antonio, Texas with further stations scheduled for New York, the airports of Denver and Salt Lake City as well as Hawaii. Seven of the 20 biggest Sixt stations are already located in the United States.
In Italy, the Company successfully entered the market with its new corporate country structure in 2017. All in all 21 company-owned rental stations were set up during the course of the year. The initial focus was on the larger commercial and holiday destinations in the north of the country. The new subsidiary recorded a revenue and earnings development in 2017 that significantly outperformed expectations. In the current year, expansion will focus on the further development of the station network in the south of the country, with at least five further stations being added by the middle of the year.
Other key corporate countries, such as Spain and France, also generated strong revenue growth in 2017. The total share of foreign business in rental revenue continued to climb, up to 55.4%
One-stop shopping: Sixt prepares new platform for mobility all from one source
Shareholder-friendly dividend policy with special dividend
On the basis of this proposal, the total dividend pay-out would increase from EUR 77.8 million in the preceding year to EUR 188.1 million.
Dr. Julian zu Putlitz, CFO of Sixt SE: "Both the planned strong increase in the ordinary dividend and the distribution of the special dividend reflect the Group's excellent equity base. This was further increased significantly as a result of the good earnings performance and the sale of our stake in DriveNow. This enables us to let our shareholders continue to participate very attractively in the Company's success in spite of our ambitious growth plans and the substantial investments in new mobility concepts."
Key Group figures for fiscal year 2017
Outlook for 2018
In 2018, the Leasing Business Unit will lay the foundation for medium-term contract and earnings growth, in particular in the Online Retail and Fleet Management business fields, and promote the international orientation. This requires further investments in IT and human resources, which are reflected in its result in the short term. Due to the growing number of leasing contracts, the remarketing of lease vehicles on the used car market is becoming increasingly important.
Keeping in mind the various growth initiatives within the Sixt Group as well as the friendly economic conditions, the Managing Board expects 2018 to show significant growth in consolidated operating revenue over last year. For pre-tax earnings (discounting the gain from the sale of the DriveNow investment) the Managing Board expects a slight increase over 2017, given the exceptionally strong earnings performance in 2017 and the ongoing strong investments in expansionary measures and new services.
Following the completion of the sale of the 50% interest in DriveNow, Sixt Group will generate a pre-tax gain of around EUR 200 million in fiscal year 2018. Alongside this one-time effect on earnings, the Managing Board expects to see no further impact in Group revenue and earnings from the sale of the interest consolidated at equity.
The full consolidated financial statements 2017 of Sixt SE will be published on 27 April 2018.
1 Value of vehicles added to the rental and leasing fleet
2 Incl. franchise countries
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|ISIN:||DE0007231326, DE0007231334 Sixt Vorzüge, DE000A1K0656 Sixt Namensaktien, DE000A1PGPF8 Sixt-Anleihe 2012/2018, DE000A11QGR9 Sixt-Anleihe 2014/2020, DE000A2BPDU2 Sixt-Anleihe 2016/2022, DE000A2G9HU0 Sixt-Anleihe 2018/2024|
|Listed:||Regulated Market in Frankfurt, Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|