Avis Budget Group has reported revenue of $2.7 billion for its third quarter 2016, a company record. This is a 3% increase primarily due to a 2% increase in pricing in the Americas and a 4% growth in international rental days.
by Staff
November 3, 2016
Photo via Wikimedia.
2 min to read
Photo via Wikimedia.
Avis Budget Group has reported revenue of $2.7 billion, a company record, for its third quarter 2016, a 3% increase. This is primarily due to a 2% increase in pricing in the Americas as well as a 4% increase in international rental days, says the company.
In the third quarter, Avis Budget reported adjusted earnings of $469 million and an adjusted net income of $227 million. According to Avis Budget, its Q3 revenue and adjusted earnings were company records.
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For the Americas (North America, South America, Central America, and the Caribbean), revenue grew 3% primarily due to a 2% increase in pricing, according to the company. Rental days increased 2% during the quarter while average available fleet grew 1%, resulting in higher utilization. Adjusted earnings increased 10% to $306 million due to higher pricing and higher volumes but partially offset by higher per-unit fleet costs ($310 per month).
"Our record third quarter results reflect continued strength in our pricing in the Americas and benefits from our initiatives to drive profitability, resulting in the highest quarterly Adjusted EBITDA margin in our company's history," said Larry De Shon, CEO of Avis Budget Group. "Looking forward, pricing continues to be positive in the Americas, although demand is softer than expected both in the Americas and in Europe. We have moved quickly to right-size our fleet to mitigate the impact and have revised our full-year 2016 outlook as a result."
For the full-year 2016, Avis Budget updated its estimates of adjusted earnings. Now the company expects that full-year revenue will increase 3% to approximately $8.75 billion. Movements in currency exchange rates are projected to negatively impact revenue growth by approximately $40 million. Per-unit costs are expected to be about $285 per month in 2016, compared to $277 in 2015.
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