Pullach, 27 May 2013 – Sixt Aktiengesellschaft, Germany’s largest car rental company and one of Europe's leading mobility service providers, recorded a good business performance in the first quarter of 2013 despite more difficult general conditions. Consolidated revenue and earnings remained on a high level, although they fell slightly short of last year's figures on account of lower demand due to the economic climate. Foreign business continued to grow dynamically by double-digit percentage points. The Board of Management is confirming its previous projections for the full fiscal year 2013.
Erich Sixt, Chairman of the Managing Board of Sixt AG: "Sixt has kept up well in the first quarter. We managed to almost balance out the slackened demand in the rental business we had expected with our expansion steps abroad. In the Leasing Business Unit we are back on a growth track thanks to a higher contract portfolio. We continue our projection for another satisfactory earnings position for the full year 2013. At the same time we will vigorously drive forward all our growth initiatives across the board."
In the first quarter Sixt added some 36,500 vehicles with a total value of EUR 0.88 billion to the rental and leasing fleets at home and abroad, after it had added some 39,300 vehicles with a value of EUR 0.93 billion over the same period the year before. This is a decrease of 7.1% in the number of vehicles and 5.4% in the value of vehicles. In view of an expected downturn in demand, Sixt already started to call vehicle orders more cautiously in the second half of 2012.
As of 31 March 2013 the Sixt's Group's equity came to EUR 645.5 million, which was EUR 12.7 million more than at the end of December 2012 (EUR 632.8 million). At 28.6% the equity ratio continued to be a top rating for the rental and leasing industry (31 December 2012: 29.1%).
The Board of Management confirms its previous projections for the full year 2013 and expects domestic demand in the Vehicle Rental Business Unit to weaken, while the growth path in the other European countries and the USA is set to continue. All in all, the Managing Board expects consolidated rental revenues to contract slightly in 2013. In the Leasing Business Unit, Sixt foresees stable to slightly higher revenues.
In 2013 Sixt will once again adhere to the principle of giving preference to adequate margins over volume growth ("Earnings before growth"). Nonetheless, all the strategic growth initiatives, such as the expansion in the USA, will be consistently driven forward.
Subject to the general economic outlook in Europe not worsening further than projected, the Managing Board reckons that the Sixt Group will generate EBT marginally lower than the previous year's level, but once again with a satisfactory earnings position in the prevailing market conditions.
Sixt covers more than 70% of the European rental market through its own subsidiary companies. In addition, the company has an active presence in the USA through its own rental stations. In the other European countries and in other global regions, the Sixt brand is represented by a close-knit network of franchisees. The first quarter of 2013 also witnessed the start of franchise operations on the US market. Overall, in the Vehicle Rental Business Unit Sixt is now active in over 100 countries.
Our carsharing offer DriveNow continues its gratifying growth path with the number of registered users now reaching around 120,000. The premium carsharing service offers around 1,500 top-quality BMW and MINI cars in the Metropolitan cities of Berlin, Munich, Cologne, and Düsseldorf
Following months of testing, the chauffeur service myDriver launched at the start of March and recorded a significant increase in demand over the first few weeks. With myDriver Sixt offers business and private customers alike a personalized drivers' service with professionally trained drivers and favourable prices that are guaranteed up front.. myDriver is already available in 12 German metropolitan areas and shall be extended swiftly to European sites outside Germany.
The Vehicle Rental Business Unit generated rental revenue of EUR 211.8 million for the first quarter of 2013 (-1.8%). Foreign business continued its unabated dynamic growth with an increase of 15.3%, while in Germany rental revenues dropped by 9.5%. First quarter revenue for the Vehicle Rental Business Unit came to EUR 233.1 million, after EUR 237.5 million over the same period last year (-1.9%).
The Business Unit’s EBT remained on a high level at EUR 20.2 million (prior year quarter: EUR 21.6 million; -6.8%), despite a recessionary environment and the start-up costs for new activities.
Sixt Leasing is one of Germany’s largest vendor-neutral, non-bank full-service leasing companies, whose services extend not only to classic finance leasing but also to a broad range of services for efficient fleet management that reduces the customers' mobility costs.
Despite the market environment becoming increasingly more difficult for leasing providers, the Business Unit's contract portfolio in Germany and abroad (without franchise partners) climbed to 62,900 as of 31 March 2013, which was roughly 9% more than at the end of the first quarter of 2012 (57,800).<
In the first quarter of 2013 Sixt generated revenue of EUR 95.9 million, an increase of 2.8% year-on-year
(EUR 93.3 million). The Business Unit's total sales (including the revenues from the sale of used leasing vehicles) amounted to EUR 134.1 million, as against EUR 141.2 million the year before (-4.9%).
For the period from January to March 2013 the Business Unit recorded EBT of EUR 4.0 million
(Q1 2012: EUR 5.5 million). This decline is not least a consequence of the pressure on margins in an ever more intense competitive environment.
SOURCE Sixt
Frank Elsner
Sixt Central Press Office
T +49 - 89 - 992 496 - 30/ - 31
F +49 - 89 - 992 496 - 32
pressrelations(at)sixt.com
Sixt Central Press Office
T +49 - 89 - 992 496 - 30/ - 31
F +49 - 89 - 992 496 - 32
pressrelations(at)sixt.com
Family-owned and operated since 1912, Sixt rent a car began business with only three car rentals: two Mercedes and a Luxus-Deutz-Landaulet.