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Hertz Revenue Declines 2%

In the second quarter 2016, Hertz Global Holdings Inc. has reported its total revenues as $2.3 billion, a 2% decline versus the second quarter of 2015. Hertz had a net loss of $28 million compared to $13 million during the same time last year.

by Staff
August 8, 2016
Hertz Revenue Declines 2%

Photo courtesy of The Hertz Corp.

2 min to read


Photo courtesy of The Hertz Corp.

For the second quarter 2016, Hertz Global Holdings Inc. has reported its total revenues as $2.3 billion, a 2% decline versus the second quarter of 2015, according to Hertz. Adjusted earnings for Q2 were $184 million versus $246 million in the same period last year, a decline of $62 million.

Hertz has reported a net loss of $28 million compared to a net loss of $13 million in the second quarter of 2015. On an adjusted basis for Q2, Hertz reported a net income of $35 million compared to a net income of $74 million in Q2 2015.

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For the U.S., Hertz’s total RAC revenues were $1.6 billion in Q2, a decrease of 2% compared to last year. According to Hertz, transaction days increased by 6% while pricing (total revenue per transaction day) decreased by 8%. Adjusted earnings for Q2 were $168 million, a $56 million decline from last year.

"In the U.S., pricing improved significantly throughout the quarter, and we see positive pricing momentum continuing into the third quarter," said John Tague, CEO and president of Hertz Global Holdings.

Unit revenues for U.S. RAC — as defined by revenue per available car day (RACD) — improved by 10 basis points year-over-year, according to Hertz. This was driven primarily by the 700 basis point improvement in vehicle utilization from Q2 2015.

In Q2, Hertz’s total international RAC revenues were $540 million, a decrease of 3% from second quarter 2015, according to the company. Excluding a $6 million unfavorable foreign currency impact, revenues decreased 2% — driven by a 2% drop in total revenue per day on a constant currency basis.

Worldwide customer satisfaction, as measured by Net Promoter Score, improved for the Hertz, Dollar, and Thrifty brands by more than four points for the second quarter.

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In the second quarter, Hertz achieved cost savings of approximately $100 million and is on pace to hit its previously announced target of $350 million of full-year 2016 cost savings, according to the company.

Other business highlights from Q2 include investing in Luxe, an app-based valet parking company, launching one-year vehicle rental supply agreements with Uber and Lyft, and transitioning its U.S. Firefly operations to its Thrifty brand.

"Significant work was accomplished this quarter as part of our three-to-five year margin improvement plan," said Tague. "While still in the first year of the plan, we completed a number of strategic actions, improved our balance sheet, and made progress on technology development, all while reducing our cost base and achieving substantial improvements in customer satisfaction. These accomplishments are the result of the dedication and commitment of our employees all across our operation.”

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