In the third quarter of 2018, Europcar Mobility Group generated revenues of 989 million euros ($1.11 billion) up 25% at constant exchange rates compared with the third quarter of 2017. On a pro-forma basis, i.e. at constant exchange rates and including the 2017 performance of Goldcar, Europcar Denmark, and Buchbinder, the group revenues grew by 2.6%.
This significant increase in group revenues was the result of positive growth across all the group’s key markets and in all of its three major business units with cars growing by 7.7%, vans & trucks growing by 24%, and low cost growing by 202%. On a pro-forma basis, these three major business units grew their rental revenues by respectively 2.1%, 4.5%, and 0.1%.
The number of rental days reached a new record of 28.2 million in the third quarter of 2018, up 28% versus the third quarter of 2017. On a pro-forma basis, growth in rental days was 2.0% for the Group spread across all its key business units.
Adjusted Corporate EBITDA
Third quarter 2018 adjusted corporate EBITDA increased by 50% at constant exchange rates to 241 million euros ($270 million) compared to 161 million euros ($181 million) in the third quarter of 2017. As expected, the adjusted corporate EBITDA margin of the group increased by 410 basis points to 24.4% in the third quarter of 2018 mostly as a result of the positive margin impact stemming from the recent acquisitions made by the group (Goldcar, Buchbinder, and Europcar Denmark).
Excluding the impact of new mobility, third quarter 2018 adjusted corporate EBITDA reached 246 million euros ($276 million) compared to 164 million euros ($184 million) in the third quarter of 2017 at constant exchange rates.
Corporate Free Cash Flow
Third quarter 2018 corporate free cash flow reached 102 million euros ($114 million) compared to 50 million euros ($56 million) in the third quarter of 2017. The main reasons for that significant increase were the higher adjusted corporate eBITDA and a lower level of non-recurring expenses. This doubling of the group’s corporate free cash flow generation in the third quarter of 2018 is particularly satisfactory as it was achieved in a context of continued investments in the group’s digitisation and as a result a higher level of non-fleet related capital expenditure mostly IT related.
In the third quarter of 2018, the Europcar posted a net profit of 148 million euros ($166 million), up 42% compared to last year’s net profit of 105 million euros ($118 million) in the third quarter of 2017. This is mostly due to the impact of the group’s strong increase in adjusted corporate EBITDA over the period.
Corporate net debt reached 791 million euros ($889 million) as of Sept. 30.