Photo via Wikimedia.
Avis Budget Group has reported revenue of $2.2 billion for its second quarter 2016, a 3% increase. This is primarily due to a 3% increase in rental days and increased pricing in the Americas offset by higher per-unit fleet costs, says the company.
For the second quarter, Avis Budget reported adjusted earnings of $204 million and an adjusted net income of $60 million.
For the Americas (North America, South America, Central America, and the Caribbean), revenue increased 2% primarily due to a 2% increase in volume, according to Avis Budget. Pricing increased 1% in the quarter despite a 1% negative impact from currency exchange rates. Adjusted earnings decreased 8% to $163 million due to higher per-unit fleet costs and increased marketing costs and commissions.
"Our second quarter results reflect a significant improvement in our pricing in the Americas as well as volume growth throughout the world," said Larry De Shon, CEO of Avis Budget Group. "The third quarter has started on a positive note, with pricing in the Americas increasing year-over-year, while our worldwide fleet costs remain within our expectations. In addition, we recently launched Avis Now, giving customers total control of their rental car experience through our mobile app, including choice of vehicle at the time of rental."
For the full-year 2016, Avis Budget Group expects its worldwide revenue to increase 3% to 5% to $8.75 to $8.9 billion, says the company. Per-unit costs are anticipated to be $285 to $290 per month in 2016, compared to $277 in 2015.