Sixt Turns Profit in U.S.

Photo courtesy of Sixt.
Photo courtesy of Sixt.

During the first half of 2016, the Sixt Group’s total revenue increased 14.6% to EUR 1.15 billion compared to EUR 1.00 billion during the same time in 2015.

Sixt rental revenue increased 17.1% — from EUR 613.4 million in first half 2015 to EUR 718.0 million, according to the company. This growth is primarily due to a strong demand from commercial and corporate customers and private clients as well as measures to strengthen sales and marketing activities.

In total rental revenue, the foreign market share reached 53% — compared to 47% in the first half of 2015, according to Sixt.

According to Erich Sixt, CEO of Sixt SE, June was the first month of profit for Sixt in the U.S, which continued in July.

The company’s earnings before taxes increased 9.5%, from EUR 74.8 million to EUR 81.9 million. The half-yearly earnings include the international expansion of the transfer service myDriver and the expansion of the DriveNow carsharing service outside of Germany, says Sixt.

For the first six months of 2016, Sixt added around 115,900 vehicles to its rental and leasing fleet with a total value of EUR 3.07 billion.

The number of Sixt rental locations worldwide (corporate and franchise) increased to 2,214 by the middle of 2016. This is about 61 more locations than at the end of 2015, according to Sixt.

The average number of vehicles in the Vehicle Rental Business Unit (in Germany and abroad, excluding franchisees) was around 105,300 vehicles — an increase of 15.4% compared to the number of vehicles during the first half of 2015 (91,200 vehicles). Sixt’s Vehicle Rental Business Unit reports revenue growth of 17.9% for the first half of 2016 — from EUR 676.1 million in 2015 to EUR 797.3 million, according to the company.

"We recorded an encouraging business development in the first half of the year,” said Sixt. “Outside Germany, Sixt continues to outperform the vehicle rental industry as a whole and thereby continually manages to gain market shares. Although the general conditions for travel and tourism traffic in Europe have become more difficult, we remain confident for the further course of the year and expect to achieve our economic targets for 2016."

Sixt’s Management Board affirms its previous projections for the whole of 2016. Upholding the cautious and demand-driven fleet policy, the board continues to expect to see a slight gain in consolidated operating revenue over last year. Allowing for ongoing extra expenses for expansion measures, the board expects to generate stable to slightly higher consolidated pre-tax profits (EBT), according to Sixt.

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