- According to preliminary figures, revenue and earnings for 2019 are fully in line with expectations and therefore represent another record year for SIXT: consolidated operating revenue +13.3%, Group EBT of around EUR 337 million on a par with the high level of last year
- Despite the strong drop in airport business, the Company registers ongoing growth in demand from private customers in its urban offices, even in the current Corona crisis; this applies in particular to such mobility solutions as flexible long-term rentals, subscription models and carsharing as alternatives to public mass transportation; the carsharing fleet expanded to around 1,000 vehicles Germany-wide
- However, worldwide mobility restrictions have meant that, since the start of March, rentals and airport reservations have dropped significantly, above all from tourists and corporate customers
- Implementation of a comprehensive set of measures to counter the Corona effects: substantial cut in the rental fleet over the short term to free up capacities and liquidity, significant savings in material and personnel costs
- In spite of these measures, the Group is expecting a severe drop in consolidated operating revenue for the whole of fiscal 2020 given the current situation, but still a highly positive Group EBT, even though this is set to be significantly lower than that of last year
- Suspension of dividend payment scheduled for the past fiscal year
- Erich Sixt: "Thanks to its high equity ratio and secure broad financing basis, SIXT holds a very solid financial position to counter the effects of the crisis."
The spread of the COVID-19 virus is affecting the tourism and mobility industry globally and therefore also demand for the mobility services offered by the SIXT Group, in particular at airports. Due to the Corona crisis, the Managing Board of SIXT SE expects to see a strong decline in consolidated operating revenue for full fiscal 2020 compared with last year (not taking into account the discontinued Leasing Business Unit). At the same time, the Managing Board expects Group EBT to be highly positive, even though substantially lower than last year (without taking into account the positive effect of the planned sale of the share in Sixt Leasing SE).
Measurement package for lower costs, higher liquidity and demand-driven products
As a reaction to lower demand, SIXT will substantially reduce the size of the rental fleet and thereby free up capacities and liquidity. SIXT is benefiting here from the short holding period of the vehicles – 6 months as a general rule – as well as its largely fixed buy-back agreements with manufacturers and dealers.
- In addition, scheduled investments will be postponed and substantial savings will be made in personnel and material costs.
- The Managing Board is planning to suggest to the Annual General Meeting on 24 June 2020 to suspend dividend payments for fiscal 2019, except for the minimum dividend for preference shares in the amount of EUR 0.05 per preference share.
- Part of the set of measures to be implemented is to strengthen the demand side by reinforcing the roll-out of flexible long-term rental and car subscription models as well as the expansion of the German-wide SIXT share range by 1,000 vehicles to meet the increased demand for individualised and flexible vehicle ownership models for corporate and private customers. Especially in urban metropolitan areas, private customers are considering the car at the moment to be a comparably safe alternative to using public transport. SIXT is therefore offering attractive conditions for day, week and annual rents.
Solid financial position, strong balance sheet
The SIXT Group has a very solid equity ratio, which as of reporting date 31 December 2019 came to around 25% according to preliminary figures (End 2018: 27.8%). This will increase with the sale of the investment in Sixt Leasing SE, the completion of which is expected in the 2nd half of 2020. The scheduled reduction of the vehicle fleet will release additional liquidity, shorten the balance sheet and cut the Group's net debt level still further, although this is already moderate and below the industry average.
Erich Sixt, CEO of Sixt SE: “The intensity of the Corona crisis is hitting the travel and mobility industry, and with it also SIXT, with an intensity that was unforeseeable a few weeks ago. We have therefore strung together a set of measures at great speed to adapt our investments and costs swiftly and decisively to this difficult situation. Thanks to its high equity ratio and its secure broad financing basis, SIXT holds a very solid financial position to counter the effects of the crisis. In this special situation, it is equally important that we offer our customers solutions that can cover their mobility needs. In times of Corona many customers value the possibility of individual mobility. We are responding to this need with substantially expanded long-term rentals and car subscription models."
SIXT Central Press Office
Tel.: +49 (0) 89 / 7 44 44 – 6700
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 and SIXT ride, the Company offers a uniquely integrated mobility service across the fields of vehicle rental, carsharing and chauffeur services. The products can be booked through one single app, which also integrates the services of its renowned mobility partners. SIXT has a presence in around 110 countries around the globe. The Company is characterised by consistent customer orientation, a lived culture of innovation with strong technological expertise, the high share of premium vehicles in its fleet and an attractive price-performance ratio. The Sixt Group generated revenue of EUR 2.93 billion in 2018 and ranks as one of the most profitable mobility companies worldwide. SIXT SE is the parent company of the Group and has been listed on the Frankfurt stock exchange since 1986 (ISIN ordinary share: DE0007231326, ISIN preference share: DE0007231334). https://about.sixt.de