Sixt Records Good Business Performance in First Quarter 2013 Despite Difficult General Conditions

  • Demand in vehicle rental more restrained due to economic climate, foreign operations continue to grow dynamically due to expansion measures
  • Further increase of leasing contract portfolio
  • Consolidated operating revenue of EUR 329 million almost at last year's level
  • Earnings before taxes (EBT) below previous year in line with expectations
  • Unchanged projections for full-year 2013: satisfactory results expected

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."

Group performance in the first three months of 2013:

  • Rental revenue of EUR 211.8 million was 1.8% below the same period last year (EUR 215.7 million). As had been expected, domestic demand slowed because of the economic situation but there was still continued dynamic growth abroad.
  • Leasing revenue increased by 2.8% to EUR 95.9 million (Q1 2012: EUR 93.3 million). This growth can be attributed to a higher contract portfolio.
  • Consolidated operating revenue (excluding revenue from the sale of used leasing vehicles) reached 
    EUR 329.0 million in the first quarter, and was almost on a par with the previous year's figure 
    (Q1 2012: EUR 330.8 million; -0.6%).
  • Total consolidated revenue decreased 3.1% to EUR 369.1 million from last year (Q1 2012: EUR 380.8 million). Lower revenue from the sale of used leasing vehicles played a major role in this.
  • Consolidated earnings before taxes (EBT), the Sixt Group’s key earnings indicator, came to EUR 22.3 million, which was EUR 3.7 million less than the year before (Q1 2012: EUR 26.0 million). Account must be taken of the fact that the earnings position was not only affected by the recessionary situation in Europe, but also by the start-up costs for strategic growth initiatives..
  • After taxes Sixt recorded a profit of EUR 15.4 million for the first quarter of 2013 (Q1 2012: EUR 17.9 million).

Cautious fleet policy 

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.

Continued outstanding equity basis 

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%). 

Outlook for full-year 2013

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. 

Developments in the operating business units

Vehicle Rental: 

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.

Leasing:

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

Contacts:

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

###

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