Avis Budget Group Inc. has reported second quarter 2014 revenue of $2.2 billion, a 10% increase compared to second quarter 2013. This is primarily due to an 8% increase in rental days and stronger pricing, which increased 5% year-over-year in North America, says the company.
Excluding certain items, adjusted earnings increased 19% to $213 million while net income increased 36% to $74 million.
Acquired in July 2013, Payless Car Rental contributed $31 million to revenue and $5 million to adjusted earnings during the second quarter 2014, says Avis.
"Our strong second quarter results were driven by our continued growth in both volume and pricing in North America and our relentless focus on accelerating growth in our most profitable channels," said Ronald L. Nelson, Avis Budget Group chairman and chief executive officer. "Summer volume and pricing have continued the trends we saw in the first half of the year, and we expect to post record results in our third quarter."
For the full-year 2014, Avis expects to generate worldwide revenue of $8.6 billion to $8.7 billion, an 8% to 10% increase compared to 2013, says the company. In addition, Avis continues to target $1 billion or more for its adjusted earnings in 2015.
Avis expects per-unit fleet costs in North America to be $300 to $310 per month in 2014, compared to $299 per month in 2013. Total company fleet costs are expected to be $295 to $305 per unit per month in 2014, an increase of approximately 2% to 5% compared to 2013.