Avis Budget’s Q2 Revenue Dips
Avis Budget Group Inc. has reported revenue of $2.2 billion for its second quarter 2015, a 1% decline compared to second quarter 2015.

Photo via Wikimedia.

Photo via Wikimedia.
Avis Budget Group has reported revenue of $2.2 billion for its second quarter 2015, a 1% decline compared to second quarter 2015. This is primarily due to a 3% increase in rental days in the Americas, offset by an approximately $122 million negative impact from movements in currency exchange rates, says the company.
Excluding certain items, adjusted earnings (EBITDA) increased 7% to $227 million, while net income was reported at $90 million or 84 cents per share — a 24% increase.
For the Americas (North America, South America, Central America and the Caribbean), revenue increased 1% due to a 3% increase in volume and a 3% increase in ancillary revenue per rental day, according to Avis Budget. Adjusted EBITDA also increased 3% — mainly due to increased volumes and improved fleet utilization, partially offset by lower pricing.
"Our second quarter results reflect organic volume growth partially offset by lower pricing, contributions from the tuck-in acquisitions we've completed in the past 12 months, and continued margin improvement," said Ronald L. Nelson, Avis Budget Group chairman and chief executive officer. "Our year-over-year pricing comparisons in the Americas improved as the second quarter progressed. We expect pricing trends to strengthen in the second half of the year while fleet costs remain manageable, enabling 2015 to be another year of record earnings for us."
In April, Avis Budget completed its acquisition of Maggiore Group, an Italian-based rental car company. The net purchase price was approximately $160 million, according to the company. Avis Budget also increased its ownership of its licensee in Brazil from 50% to 100% in April.
Additionally, Avis announced that its board of directors increased the company’s share repurchase authorization by $250 million. This gives the company $420 million of available repurchase authorization from July 1 and on, according to Avis Budget.
For the full-year 2015, Avis expects worldwide revenue of $8.6 to $8.7 billion, about a 1% to 3% increase compared to 2014, says the company. For 2015, per-unit fleet costs in the Americas will be around $300 to $310 per month — compared to $310 in 2014.
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