Europcar Reports Revenue Up 10%

Photo courtesy of Europcar
Photo courtesy of Europcar

Europcar reported revenue of 1.028 billion euros in the first half of 2017 — up 10.1% at constant exchange rates compared with the first half of 2016.

In the second quarter, Europcar revenue growth reached 13.7% and 6.6% on an organic basis, according to the company.

For the first half of 2017, adjusted earnings increased by 2.7% to 56.4 million euros versus 54.7 million euros in the first half of 2016. The company reported a net loss of 27 million euros compared to a 2.8 million euros profit during the same time last year. This is primarily due to the impact of a 39 million euros charge due to non-recurring expenses — related to a downsizing expense at Europcar’s Germany headquarters, according to the company.

“We delivered a solid set of operational and financial results for the first half of 2017 with a good operational performance across all of our corporate countries and three major business units, which resulted in a strong double digit growth in both revenue and corporate operating free cash flow for the Group,” said Caroline Parot, CEO of Europcar Group. “During this first half, Europcar also significantly stepped up the pace of its acquisition momentum and is now in a position to have completed the bulk of its 2020 ambition in terms of acquisitions.”

In the first half of 2017, Europcar’s number of rental days increased to 30 million, up 12.2% versus the first half of 2016. According to the company, this growth was spread across all the divisions with cars up 8.2%, vans and trucks up 14%, and low cost up 64%.

On the other hand, revenue per rental day decreased 2% at Group level. This was mostly impacted by a 4.1% decline in the vans and trucks business unit and a 0.5% decline in the cars business unit, according to Europcar.

For full-year 2017, Europcar’s four financial targets include accelerating organic revenue growth above 3%, increasing adjusted earnings above 11.8%, having a corporate operating free cash flow conversion rate above 50%, and implementing a dividend payout ratio above 30%.

In May, Europcar Group acquired Buchbinder, a car rental company based in Germany and Austria, according to the company. In June, the company announced a 20% minority investment in SnappCar, a peer-to-peer carsharing company based in Europe.

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