Sixt gets off to a running start in 2017 and significantly raises Group earnings in the first quarter
- Earnings before taxes (EBT) outperform revenue growth and climb 18.3 % to EUR 36.8 million
- After three months consolidated revenue is up by 5.9% to EUR 569.3 million, driven by ongoing strong growth in the Vehicle Rental Business Unit’s foreign operations
- Good start in Italy: demand in the new corporate country exceeds expectations
- Positive outlook for full fiscal year 2017 unchanged
The Sixt Group registered a successful business performance during Q1 2017 and continued the positive trend of the previous year. The strong foreign operations in the Vehicle Rental Business Unit once again proved to be growth driver. Consolidated earnings before taxes (EBT), the Sixt Group’s principal success parameter, clearly outperformed Group revenue in the first three months and gained 18.3% over the same period the year before to EUR 36.8 million. Group revenue climbed 5.9% to EUR 569.3 million. In the wake of the positive business performance of Q1, the Managing Board is affirming its outlook for the full year 2017.
Today Sixt SE published its Quarterly Statement as at 31 March 2017 on its website at http://ir.sixt.eu.
Erich Sixt, CEO of Sixt SE: "Following on the heels of the record year 2016 Sixt got off to a strong start into the new year. Despite expenditures for expansions outside of Germany we managed to grow earnings over revenue. At the start of this year we launched our own station network in Italy. This means that we are currently opening up another big rental market in Europe, which should bring in further growth. We got off to a very promising start in Italy."
Already 12 stations in Italy
With the start of 2017 Sixt begun to set up its own network of stations in Italy. So far twelve stations have been opened at key airports in Northern Italy, including Milan, Rome, Florence and Venice. Sixt's business activities in Italy got off to a very good start in Q1 with demand outstripping expectations. With an annual volume of around EUR 1.1 billion, Italy is one of the bigger vehicle rental markets in Europe. Over the medium term Sixt plans to have up to 25 locations throughout Italy with a focus on airports.
Key Group figures for the first quarter 2017
- Consolidated revenue climbed 5.9% to EUR 569.3 million (Q1 2016: EUR 537.5 million). Foreign business operations gained 9.8% and revenue in Germany climbed 3.6%.
- Consolidated operating revenue (excluding revenue from the sale of returned leasing vehicles) rose 6.0% to EUR 493.2 million compared to the EUR 465.3 million generated over the same period the year before.
- Operating rental revenue came to EUR 383.2 million, a gain of 5.2% over the same period the year before (Q1 2016: EUR 364.1 million). Driver for this development were foreign operations that clocked up 8.9% growth. Sixt performed very encouragingly above all in Spain and France. The share of foreign business continued to climb from 49.6% in the same quarter of the year before to 51.3% in Q1 2017.
- Operating leasing revenue (without the proceeds from sales) increased 8.7% to EUR 109.9 million (Q1 2016: EUR 101.2 million). Here Sixt Leasing SE benefited from the high and even faster growth in private and commercial customer leasing (business field Online Retail).
- The Group’s earnings before taxes (EBT) climbed in spite of ongoing expenditures for the foreign expansion and new mobility offers. EBT gained a significant 18.3% to EUR 36.8 million (Q1 2016: EUR 31.1 million).
- Consolidated profit improved 21.8% to EUR 25.6 million (Q1 2016: EUR 21.0 million).
Outlook for the full year 2017
Following the good start in the first quarter, the Managing Board affirms its previous projections for the full year 2017. The Board maintains its expectations that the Vehicle Rental Business Unit will see ongoing and growing demand, which continues to be driven primarily by foreign operations. The expansionary activities abroad are continued and will incur corresponding extra expenses. Expectations for the Leasing Business Unit likewise project the positive business development to continue. It is expected that the contract portfolio will grow substantially, above all in online leasing to private and commercial customers.
Based on these assumptions the Managing Board expects that the Group will generate slightly higher operating revenue and stable to marginally higher EBT in the current fiscal year.