Sixt Announces First Quarter Results
Company reports revenue growth with slightly lower earnings due to higher operating expenses that include expansion initiatives in the U.S.
Sixt AG, Germany’s largest vehicle rental company and a leading provider of mobility services in Europe, reported first quarter 2012 consolidated earnings before taxes (EBT) of EUR 26.0 million ($33.1 million), compared with first quarter 2011 earnings of EUR 27.8 million, after adjustment for non-recurring income.
The Group’s total revenue increased 4.5% to EUR 380.8 million, compared to EUR 364.4 million for the same quarter last year. Sixt reported overall rental revenue growth of 10.3% to EUR 215.7 million compared to EUR 195.6 million in the first quarter of 2011. Rental revenue in Germany grew 5.7% quarter-on-quarter. Outside Germany, revenue grew 22.1%.
Erich Sixt, chairman of the managing board of Sixt AG: “In the first three months of this year, Sixt performed entirely within expectations. Even in a weakened economic environment, we remain on a growth track, not least of all because of our continuing successes in internationalization. At the same time, we can reconfirm our expectation that Sixt will earn well again in 2012, even if it will be difficult to repeat last year’s record profit.”
Sixt added a total of 39,300 vehicles to its rental and leasing fleet, compared to 33,400 vehicles for the same period last year, an increase of nearly 18%.
Earnings performance was affected by higher operating expenses, reported Sixt, citing growth initiatives such as the expansion of the rental business in the United States and the DriveNow premium car-sharing program, a joint venture between Sixt and BMW. Sixt intends to expand iDriveNow this year.
In the United States, following a launch in Florida, the company opened at Hartsfield–Jackson Atlanta International Airport during the quarter, bringing the total number of U.S. locations at major traffic hubs to six. The worldwide network of Sixt franchisees was also expanded in the first quarter with a launch in Thailand.
On 2012 outlook, Sixt reported in its press release:
“Management has reconfirmed its previous projections for 2012. Given the slackening economy in Europe, it assumes this year will be more difficult than last. Sixt expects that rental revenue will continue to rise, and also considers an increase in leasing revenue possible. Results of operations are again expected to be good. However, macroeconomic risks and higher operating costs may well make it difficult to repeat the very high level of earnings from 2011.”
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