Avis Budget’s Full-Year Revenue Increases 5%

Photo via Wikimedia.
Photo via Wikimedia.

Avis Budget Group Inc. has reported revenue of $8.5 billion for full-year 2015, an increase of 5% compared with 2014 in constant currency, according to the company. Adjusted earnings for 2015 were the highest total in Avis Budget’s history, rising 3% to $903 million. Net income had a 7% year-over-year increase and hit $333 million, says the company.

For its fourth quarter 2015, Avis reported revenue of $1.9 billion, a 1% increase compared to fourth quarter 2014, primarily due to a 8% increase in rental days.

The company reported its adjusted net income as $18 million while adjusted earnings declined 1% to $128 million — and increased 5% in constant currency — in Q4 2015. The results were partially offset by reduced pricing and a negative impact from currency movements. The company reported a GAAP net loss of $5 million for the quarter.

For North America, revenue increased 1% primarily due to a 3% increase in volume and a 3% increase in ancillary revenue per rental day, says the company. Adjusted earnings increased 17% in Q4, driven by increased rental volumes, lower per-unit fleet costs, and higher fleet utilization.

For 2016, Avis Budget expects its worldwide revenue to increase 2% to 4% to $8.7 to $8.85 billion, according to the company, with negative impacts from currency exchange rates.

In North America, rental days are predicted to increase 2% to 4% in 2016. Per-unit fleet costs are expected to be approximately $305 to $313 per month in 2016, an increase of 3% to 5% from $297 in 2015, says the company. For total company fleet costs, Avis Budget expects $280 to $290 per month in 2016, compared to $277 in 2015.

Regarding ride-hailing services Uber and Lyft, Avis reported that its volume of one-day rentals, the segment most susceptible to taxi and ride-hailing, increased in 2015. In ride-hailing’s biggest cities — Boston, Chicago, New York, San Francisco, and Washington — the company’s rental day volumes increased 2%, consistent with volume growth in the U.S.

“Another way of looking at this is that 97% of our renters drive our cars more than 50 miles over the course of a transaction, making substitution with a ride-hailing service prohibitively expensive,” said David Wyshner, Avis Budget's president and CFO.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Understanding The Fleetification of Everything

As fleet miles increase exponentially, and as new stratum of fleet enter both consumer and business use cases, the "founding fathers" who gathered at Fleet Forward in Miami last week have some work to do.

The Problem with Valuing Safety Technology

As advanced safety technologies have migrated to mainstream vehicles, retaining value for these options at resale remains an issue.

ELD Mandate: Is Your Head Still in the Sand?

If you think you have 11 weeks to implement an Electronic Logging Device system to meet the Dec. 18 compliance deadline, you really don’t — for a few reasons.

Job Finder: Access Top Talent. Fill Key Positions.

>