Avis Budget Revenue Flat on Pricing Declines

Avis Budget Group has reported revenue of $2.2 billion for its second quarter 2017, unchanged compared to Q2 2016. This is primarily due to an increase in overall rental days being offset by a decrease in pricing.

In the second quarter, Avis Budget reported adjusted earnings of $140 million — compared to $204 million in the prior year — and an adjusted net income of $25 million, according to the company.

For the Americas (North America, South America, Central America, and the Caribbean), revenue was 2% lower primarily due to a 4% reduction in time and mileage revenue per day, according to the company. Rental days increased 2% during the quarter while there was almost a 10% increase in per-unit fleet costs. Adjusted earnings decreased 41% to $96 million year-over-year.

"Our recently announced partnerships with both Waymo and RocketSpace are providing opportunities to pilot scalable new business models as we start to execute on our strategy to leverage our fleet management and logistics capabilities in the rapidly developing mobility space," said Larry De Shon, CEO of Avis Budget Group.  "I'm also excited about all of the innovative growth initiatives we've announced this year, including enabling Avis customers to transact with us through Amazon Alexa and Google Home."

For the full-year 2017, Avis Budget expects that full-year revenue will increase $8.8 billion to $8.95 billion.  Adjusted earnings are predicted to be $725 million to $775 million, according to the company.