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Avis Budget Increases Full-Year Revenue by 2%

Avis Budget Group Inc. has reported revenue of $8.7 billion for full-year 2016, an increase of 2% compared to 2015. For its fourth quarter 2016, Avis earned revenue of $1.9 billion, a 1% drop year-over-year.

by Staff
February 16, 2017
Avis Budget Increases Full-Year Revenue by 2%

Photo via Wikimedia

2 min to read


Photo via Wikimedia

Avis Budget Group Inc. has reported revenue of $8.7 billion for full-year 2016, an increase of 2% compared to 2015, according to the company. The increase was driven by a 3% rise in rental days, partially offset by a 2% decline in pricing.

Adjusted earnings for 2016 were $838 million while net income was $273 million, says the company.

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For its fourth quarter 2016, Avis reported revenue of $1.9 billion, a 1% decrease compared to fourth quarter 2015, primarily due to 1% decreases in rental days and pricing in the Americas and a 5% drop in international pricing.

In the fourth quarter, Avis reported its adjusted earnings at $121 million and saw a net loss of $31 million. According to the company, results were impacted by lower pricing and higher per-unit fleet costs.

The company’s adjusted earnings for Q4 and full-year 2016 exclude a charge of $26 million ($16 million net tax) related to a recent judgment against Avis in a personal-injury trial.

“While our fourth quarter results reflect softer-than-expected volume and pricing, as well as currency movements having a $7 million adverse impact on Adjusted EBITDA compared to what we had anticipated, we are enthusiastic about our prospects for 2017 and beyond," said Larry De Shon, CEO of Avis Budget Group. "Our strategic initiatives are already beginning to deliver meaningful benefits, and we continue to expect that our efforts will drive substantial long-term margin growth."

For North America, revenue declined 1% primarily due to a 1% decrease in rental days and a 1% drop in pricing, according to the company. Adjusted earnings decreased to $101 million in Q4 because of lower revenue and higher per-unit fleet costs. Fleet costs increased 4% to $308 per month during Q4.

For 2017, Avis Budget expects its worldwide revenue to increase 2% to 3% to $8.8 to $8.95 billion, according to the company. Currently, movements in currency exchange rates are predicted to negatively impact revenue growth by about $130 million.

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In North America, rental days are predicted to increase 1% to 2% in 2017. Pricing is expected to increase between 0% and 1%, with no significant impact from currency exchange rates, says the company. Per-unit costs are predicted to be $311 to $321 — compared to $311 in 2016.

For total company fleet costs, Avis Budget expects $280 to $290 per month, compared to $285 in 2016.

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