Sixt AG, the biggest car hire operator in Germany and one of Europe’s leading mobility service providers, has reported strong demand during the third quarter of this year despite the slow economy. Due to this, the company’s business performance has been within its expectations for the year so far. From January through September, pre-tax profit was €104 million and earnings only slightly fell below last year’s record. This came despite higher operating costs and start-up expenses. The group still expects a growth in consolidated revenue for the full-year, along with a solid profit.
Over the year so far, rental revenue at Sixt has risen 7.6% from €674.3 million to €725.7 million. This was partially due to continued dynamic growth in the company’s international operations in the US and Western Europe. Every country where Sixt has a presence showed revenue gains, and these were significant in some cases.
Sixt has operations in over 70% of the European car hire market with its subsidiaries, and it has been expanding its operations in the US since last year. In other countries across Europe and other regions of the world, it has a strong franchise network. Its international business continued growing over the first nine months of the year, with rental revenue growth of 20.1%. Operations in the US have started making a decent contribution. Overall, the rental business had a total revenue growth of 7.4% from €737.4 million to €791.7 million, while pre-tax profits were down 5.4% from €99.2 million to €93.8 million. With operating expenses anticipated to be higher and start-up costs to launch its US business and DriveNow programme, the company accepts these results as very satisfactory.
Sixt AG also reported a 4.6% decline in leasing revenue from €296.1 million to €282.6 million. This was due to the company’s focus on full-service contracts and fleet management, as well as more competitive market conditions. The group is one of the biggest non-bank, vendor-neutral full-service leasing operators in Germany – offering private and corporate customers a range of supplemental services to manage individual vehicles and fleets, as well as pure finance leasing, to reduce the cost of mobility. The unit’s total number of leases rose about 9% to 61,450 as of 30 September, compared to 56,300 by the end of last year. This is also about 2% more than the end of the first half of this year. Total revenue for the year thus far fell 6.2% from €434.9 million to €408.1 million, while pre-tax profit fell from €17.7 million to €12.8 million.
Total revenue for Sixt AG increased 2.3% from €1.18 billion to €1.2 billion, while consolidated earnings before net finance costs and taxes dropped 8% from €154.9 million to €142.5 million. After taxes, profits fell 10.1% from €80.4 million to €72.3 million. The company continues to anticipate an increase in consolidated revenue for the full-year, despite on-going risks in the economy and a less-than-optimistic business environment. Pre-tax profits for the year are expected to be high but less than last year’s record.
Sixt AG chairman of the Managing Board Erich Sixt says that the company continues growing amid a difficult economy and has consolidated its standing as one of the most profitable car hire operators in the world. Business performance for the year so far shows the internal strength of the group. They continue to be very pleased with their international business, which has been experiencing significant double-digit growth in some cases. Overall, these results are more than respectable.