Sixt Group Earnings for First-Half of 2012 Down Over Last Year
Sixt reported that higher operating expenses, as well as the start-up costs for establishing its rental business in the U.S. and its car sharing service had a dampening effect on earnings.
Germany-based Sixt AG said in its latest financial report that so far in 2012 its earnings are “in line with internal expectations,” though the company “expects conditions in the second half to be more difficult,” according to an Aug. 21 company announcement. The company does not expect its consolidated earnings before taxes (EBT) to reach the record figure of the previous year.
Sixt reported that for the first half of the year its EBT was EUR 63.4 million, a drop of 5.4% on the previous year after adjustment for non-recurring income. After taxes, Sixt reported a half-year profit of EUR 43.8 million, down from the first half of 2011 of EUR 50.2 million.
Higher operating expenses, as well as the start-up costs for growth initiatives such as the establishment of Sixt's rental business in the U.S. and the premium car sharing offer DriveNow, had a dampening effect on consolidated earnings, Sixt reported.
Including its leasing services and used car sales, Sixt Group’s total revenue increased by 2.8% for the first half of the year to EUR 396.3 million.
For the second quarter of 2012, the Group reported EBT of EUR 37.4 million, down 4.9% over the second quarter of 2011. The group's total revenue rose 1.3% to EUR 396.3 million for the second quarter. (See Sixt’s 2011 second quarter results here.)
Driven by growth in international operations, namely the U.S., France and Spain, rental revenues in the Vehicle Rental Business Unit rose 8% over the first six months of 2012. The EBT for the Vehicle Rental Business Unit was EUR 53.9 million for the first half of 2012, a drop of 7.6% compared to the previous year's period.
At EUR 237.0 million, rental revenue grew 5.9% compared to last year’s second quarter (EUR 223.7 million).
Business operations outside Germany saw revenue climb to EUR 155.0 million — a 20.2% increase compared the same quarter in 2011. In Germany, rental revenue increased 2.5% to EUR 297.7 million.
You can see all the public car rental companies' second quarter results here.
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