Avis Budget Revenue Hits Record at $2.7B

Photo via Wikimedia.
Photo via Wikimedia.

Avis Budget Group has reported revenue of $2.7 billion, a company record, for its third quarter 2016, a 3% increase. This is primarily due to a 2% increase in pricing in the Americas as well as a 4% increase in international rental days, says the company.

In the third quarter, Avis Budget reported adjusted earnings of $469 million and an adjusted net income of $227 million. According to Avis Budget, its Q3 revenue and adjusted earnings were company records.

For the Americas (North America, South America, Central America, and the Caribbean), revenue grew 3% primarily due to a 2% increase in pricing, according to the company. Rental days increased 2% during the quarter while average available fleet grew 1%, resulting in higher utilization. Adjusted earnings increased 10% to $306 million due to higher pricing and higher volumes but partially offset by higher per-unit fleet costs ($310 per month).

"Our record third quarter results reflect continued strength in our pricing in the Americas and benefits from our initiatives to drive profitability, resulting in the highest quarterly Adjusted EBITDA margin in our company's history," said Larry De Shon, CEO of Avis Budget Group. "Looking forward, pricing continues to be positive in the Americas, although demand is softer than expected both in the Americas and in Europe. We have moved quickly to right-size our fleet to mitigate the impact and have revised our full-year 2016 outlook as a result."

For the full-year 2016, Avis Budget updated its estimates of adjusted earnings. Now the company expects that full-year revenue will increase 3% to approximately $8.75 billion. Movements in currency exchange rates are projected to negatively impact revenue growth by approximately $40 million. Per-unit costs are expected to be about $285 per month in 2016, compared to $277 in 2015.

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

Autonomous Vehicles and the Changing Role of the Fleet Manager

With fewer drivers and substantially longer fleet lifecycles, fleet managers will pivot to new job functions.

2017: Fleet Mix Will Be Paramount

Car rental companies are migrating to vehicle segments with better residual values, though not without bumps in the road.

Auto Rental Summit: Five Trend Lines

Taking in the seminars, discussions, and networking at the 2016 Auto Rental Summit, trend lines emerged around shifts in model mix, data protection issues, increasing labor costs, workforce engagement, and new platforms to rent cars.

Job Finder: Access Top Talent. Fill Key Positions.