Sixt Revenue Up, Profits Down in First Half

Sixt AG, a global car rental and mobility service provider, announced a total consolidated revenue of EUR 781.8 million in the first half of 2013, up 0.6% over the first half of 2012.

However, consolidated earnings before taxes (EBT) came to EUR 57.8 million, some 8.8% less than the year before period (EUR 63.4 million). Sixt reported that earnings were affected by a weak European market and the ongoing start-up costs for strategic growth initiatives such as the expansion of U.S. operations and its premium car-sharing division DriveNow.

“After the first half of the year, Sixt is fully on track,” says Erich Sixt, chairman of the managing board of Sixt AG. “We have managed to more than compensate for a drop in domestic demand through numerous measures for expansion abroad. We are staying the course for the second half of the year and will utilize growth opportunities with all due caution. Despite the recession in Europe, we expect once again to see a satisfactory result for this year.”

For the second quarter of 2013, consolidated revenue (including vehicle rental and leasing) increased 4.2% to EUR 412.7 million in the second quarter of 2013, an improvement over the consolidated revenue of EUR 396.3 million in Q2 2012.

For rental revenue, the company earned EUR 254.1 million in Q2 2013, which is 7.2% above the same period last year or EUR 237.0 million. Sixt reported consolidated earnings before taxes of EUR 35.5 million, EUR 1.9 million less than the same period last year.

When looking ahead to the rest of 2013, Sixt’s managing board expects consolidated rental revenues to remain stable despite economic conditions. According to the board, domestic demand for the vehicle rental business unit will most likely remain weak, but there should be growth in the rest of Europe and the United States. Sixt currently has 15 U.S. locations and has started a franchise program.

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