Sixt Reports H1 2014 Results

Sixt, one of the world’s largest car rental companies, has reported that its consolidated operating revenue for the first six months increased by 8.5% to EUR 760.2 million compared to the same period last year.

Total Group revenue climbed 6.0% to EUR 823.8 million, while earnings before taxes (EBT) registered a growth of 16.7% to reach EUR 67.5 million.

Erich Sixt, Chairman of the Managing Board of Germany’s Sixt SE, said, “The first six months have shown that Sixt is in top shape. Our growth is broadly based, with the ongoing expansion abroad remaining the driver for the encouraging growth in revenue. However, we also recorded a solid revenue growth in Germany. We will continue to utilize growth opportunities with resolve but sound judgement to gain further market shares.”

H1 2014 Group Performance

Consolidated operating revenue (excluding revenue from the sale of used leasing vehicles) rose 8.5% from EUR 700.7 million to EUR 760.2 million in the first half of 2014. 33.4% of these revenues were generated abroad (H1 2013: 32.2%).

Total consolidated revenue climbed by 6.0% to EUR 823.8 million (H1 2013: EUR 777.0 million).

Rental revenue registered growth of 9.8% to EUR 507.7 million (H1 2013: EUR 462.2 million). Sixt managed to expand revenue in foreign markets (+16.4%) as well as at home in Germany (+5.6%).

Leasing revenue climbed by 4.9% to EUR 204.9 million (H1 2013: EUR 195.4 million), whereby the sustained growth in contracts has a correspondingly positive effect.

Consolidated earnings before taxes (EBT), the Sixt Group’s key earnings indicator, rose 16.7% from EUR 57.9 million to EUR 67.5 million. Expressed in relation to consolidated operating revenue this amounts to a return on sales of 8.9% (H1 2013: 8.3%). The improvement in earnings is due to a friendlier economic climate in Europe, the stronger sales and marketing activities and the expansion measures in the international markets in Europe and the USA. The EBT also already includes the costs for the long-term strategic growth initiatives.

Q2 2014 Group Developments

Consolidated operating revenue in the period from April to June 2014 increased by 9.2% to EUR 407.6 million, compared with EUR 373.3 million in the same period of 2013.

Consolidated revenue rose 7.6 % to EUR 441.2 million (Q2 2013: EUR 410.1 million).

Rental revenue expanded by 10.1% to EUR 277.6 million (Q2 2013: EUR 252.1 million).

Leasing revenue registered 5.0% growth to EUR 104.2 million (Q2 2013: EUR 99.3 million).

EBT for the second quarter of 2014 was EUR 40.8 million, some 14.9% higher than the corresponding period the year before (EUR 35.5 million).

Extended Rental and Leasing Fleet

In the first half of the year the company added a total of 93,300 vehicles with a total value of EUR 2.29 billion to the rental and leasing fleets at home and abroad, after it had added some 82,900 vehicles with a value of EUR 2.04 billion over the same period the year before. This means that both the number of vehicles as well as the total value of cars increased by around 12%.

Equity

In mid-2014 Sixt Group's equity came to EUR 676.2 million and was therefore slightly higher than at the end of 2013 (EUR 675.5 million). Due account must be taken, however, of the dividends for fiscal year 2013 paid out in June 2014, with an amount of EUR 48.4 million.

At 23.6% the equity ratio continues to be a top rating in the rental and leasing industry (31 December 2013: 28.5%).

Developments - Vehicle Rental

Sixt is represented through its subsidiaries in the core European countries of Germany, France, Spain, the UK, the Netherlands, Austria, Switzerland, Belgium, Luxembourg and Monaco (Sixt-Corporate countries) and thus covers the largest part of the European market, making it one of the continent's leading vehicle rental companies.

Since 2011 Sixt has been active with operations on the US rental market. In many other European and non-European countries, Sixt is additionally represented by franchise and cooperation partners (Sixt-Franchise countries).

As at 30 June 2014 Sixt had 2,151 rental offices worldwide (company offices and franchisees), 84 more than at the end of year 2013 (2,067). In the world's biggest rental market, the USA, the number of rental stations at the end of the first six months increased to 32 (31 December 2013: 26), among other things, with a new opening at Los Angeles International Airport.

The average number of vehicles in the Vehicle Rental Business Unit (in Germany and abroad, excluding franchisees) for the first six months of the year was 79,200 vehicles and thus just about 2% more than the average figure for the whole of 2013.

DriveNow, the premium carsharing joint venture Sixt is operating together with BMW, continued on its growth track. The current number of registered users is over 300,000 in Germany after 215,000 as of the end of last year. During the first six months of 2014 the Vehicle Rental Business Unit generated rental revenue of EUR 507.7 million, a gain of 9.8% on the same figure from the previous year's period. In Germany, where Sixt has been unrivalled market leader for years, rental revenue increased 5.6%, while the manifold expansion activities abroad meant that dynamic growth for foreign operations rose by 16.4%. All in all, revenue for the Business Unit increased 9.9% to EUR 555.3 million (H1 2013: EUR 505.3 million).

EBT outperformed earnings growth for the first six months, increasing by 17.8% to EUR 60.0 million (H1 2013: EUR 50.9 million).

Developments - Leasing

Sixt is one of the largest non-bank, vendor-neutral leasing companies in Germany and additionally operates subsidiaries in France, Switzerland, Austria and the Netherlands. The focus of business activities is on fleet management and full-service leasing for corporate and business clients. This covers a wealth of further services alongside the classic finance function.

The contract portfolio developed very encouragingly during the first half of the year, reaching 96,200 by mid-2014. This is a gain of around 26% on the number at the end of 2013 and about 21% more than the number of contracts as at 31 March 2014. The strong growth is mainly attributable to the fleet management segment.

Leasing revenue from January to June 2014 rose 4.9% to EUR 204.9 million (H1 2013: EUR 195.4 million). The Business Unit's total revenue (including the revenues from the sale of used leasing vehicles) amounted to EUR 265.9 million, which was almost on a par with last year's figure (H1 2013: EUR 269.1 million; -1.2%).

The Leasing Business Unit improved EBT by 6.1% during the first half of 2014 to EUR 9.6 million (H1 2013: EUR 9.1 million).