Monday, November 24, 2014


Sixt records significant revenue and earnings improvement after the first nine months of 2014
  • With consistently high demand consolidated operating revenue climbs 9.2% over course of the year
  • Third quarter business performance exceeds Company's own expectations
  • Group earnings before taxes (EBT) for period January to September up by 14.8% to EUR 131.1 million
  • Substantial revenue and earnings improvement also expected for full fiscal year 2014
Mumbai, November 24, 2014 – After the first nine months of the year Sixt revenue and earnings are on a clear growth track. The international mobility service provider increased its consolidated operating revenue by 9.2% year-on-year to EUR 1.23 billion. Total Group revenue climbed 7.4% to EUR 1.34 billion. Consolidated earnings before taxes (EBT) for the period January to September increased 14.8% to EUR 131.1 million. The third quarter business performance exceeded even the Company's own expectations. Both Business Units, Vehicle Rental and Leasing, contributed towards improved revenue and earnings. In view of the encouraging business performance the Managing Board now projects consolidated operating revenue and Group EBT for the full year 2014 to be substantially above the corresponding figures of last year.

Erich Sixt, Chairman of the Managing Board of Sixt SE: "The first nine months figures demonstrate that Sixt is in excellent shape. We did not expect such strong demand in the third quarter, especially not the level recorded in Germany, given that general economic conditions are cooling. It is very positive for Sixt to outperform the markets and thereby continually gain market shares. We are equally upbeat for the remainder of the year, even though we have to keep watching the latest economic downturn in Europe very carefully."

Group performance in the first nine months of 2014
  • Consolidated operating revenue (excluding revenue from the sale of used leasing vehicles) climbed 9.2% from EUR 1.13 billion to EUR 1.23 billion. 35.9% of revenues were generated abroad (9M 2013: 34.5%).
  • Rental revenues were up 10.0% to EUR 845.2 million after EUR 768.3 million in the same period last year. Sixt registered growth, both at home in Germany (+5.1%), where the Company is by far the biggest vehicle rental company, as well as the markets outside Germany (+16.8%).
  • Leasing revenue climbed by 6.0% to EUR 310.5 million (9M 2013: EUR 292.9 million). The Leasing Business Unit benefited from the ongoing growth of its contract portfolio.
  • Group total revenue rose 7.4% to EUR 1.34 billion (9M 2013: EUR 1.25 billion).
  • Consolidated earnings before taxes (EBT), the Group’s key earnings indicator, show a profit of
    EUR 131.1 million for the first nine months or some 14.8% more than for the same period last year
    (EUR 114.2 million). Expressed in relation to consolidated operating revenue this amounts to a return on sales of 10.6% (9M 2013: 10.1%).
All of these encouraging earnings developments are essentially due to the following factors:
  • Significantly higher demand in vehicle rental due to greater sales efforts and friendly business climate during the first half of the year
  • Targeted expansion measures in the European countries outside of Germany and in the USA
  • Cautious fleet planning under tight cost management.
    Group developments in the third quarter of 2014
  • Consolidated operating revenue in the third quarter of 2014 increased by 10.4% to EUR 474.6 million, after EUR 429.8 million in the same quarter of 2013.
  • Rental revenues grew by 10.3%, climbing to EUR 337.5 million (Q3 2013: EUR 306.1 million).
  • Leasing revenues increased by 8.3% to EUR 105.6 million (Q3 2013: EUR 97.5 million).
  • Consolidated revenues rose 9.6% to EUR 515.6 million (Q3 2013: EUR 470.5 million).
  • For the third quarter Sixt reports EBT of EUR 63.6 million. This means that last year's figure of EUR 56.3 million, which was already very strong, was once more outperformed by 12.9%.
Higher investments in the rental and leasing fleet 
Given good demand, Sixt carefully expanded its vehicle fleet over the course of the year. Over the first nine months the Group added around 132,200 vehicles to the rental and leasing fleet (9M 2013: 121,500 vehicles) with a total value of EUR 3.31 billion (9M 2013: EUR 3.04 billion). This equals 9% more in the number of vehicles as well as the volume of investments. Sixt continues to expect the volume of investments for the full-year 2014 to be higher than last year (EUR 3.87 billion). 

Continued strong equity basis 
At the end of September 2014 Sixt Group's equity came to EUR 727.6 million and thereby was EUR 52.1 million more than at the end of 2013 (EUR 675.5 million). At 24.2% the equity ratio continues to be a top rating in the rental and leasing industry (31 December 2013: 28.5%).

Outlook for the whole of 2014
Following the good development of the Group over the first nine months of the current year, Sixt upholds its expectations for business performance to continue positively. Nonetheless, the Managing Board expects further increases in fleet costs and other operating expenses in the Vehicle Rental Business Unit. As in the previous year, 2014 will see further costs being incurred for important strategic growth initiatives.
Account must also be taken of the fact that the economic outlook for 2014 and 2015 has darkened lately for Sixt's core countries of Western Europe, especially in Germany, given the numerous geopolitical crises such as the Ukraine conflict or the tensions in the Near and Middle East.
For the full fiscal year of 2014, the Managing Board forecasts an increase in consolidated operating revenues, which it expects to be in the higher single-digit percentage range compared to last year. Growth stimulus should continue to come primarily from the markets abroad. Based on a continually demand-driven and cautious fleet policy as well as tight cost management, the Group's EBT is expected to grow substantially in 2014.

Developments in the operating business units Vehicle rental
Sixt is represented through its subsidiaries in the core European countries of Germany, France, Spain, the UK, the Netherlands, Austria, Switzerland, Belgium, Luxembourg, and Monaco (Sixt-Corporate countries) and thus covers the largest part of the European market, making it one of the continent's leading vehicle rental companies. Alongside these, Sixt has been operating in the USA since 2011. In many other European and non-European countries, the Company is additionally represented by franchise and cooperation partners (Sixt-Franchise countries).
The premium carsharing joint venture DriveNow, which Sixt is operating together with BMW, remains on growth track and meanwhile has over 350,000 registered users. Since October DriveNow has now also been available in Vienna. Meanwhile, myDriver, the chauffeur service at taxi price level, which Sixt launched in March 2013, has conducted almost 150,000 trips making it the market leader in Germany in the market segment for alternatives to taxis.
During the first nine months of 2014 the Vehicle Rental Business Unit generated rental revenue of EUR 845.2 million, a gain of 10.0% on the same figure from the previous year's period. In Germany rental revenues grew by 5.1%. Abroad, Sixt benefited from the targeted expansion measures and generated an increase in revenue of 16.8%. After nine months the total revenue for the Business Unit increased 10.3% to EUR 924.3 million (9M 2013: EUR 837.6 million). Compared with revenues, EBT registered an above-average growth of 12.9% to EUR 118.2 million (9M2013: EUR 104.7 million).

Leasing Sixt is one of the largest non-bank, vendor-neutral leasing companies in Germany and is additionally represented through subsidiaries in France, Switzerland, Austria, and the Netherlands. The focus of business activities is on fleet management and full-service leasing for corporate and business clients. This covers a wealth of further services alongside the classic finance function.
After the first nine months the portfolio of contracts as at the end of September was 97,600, a gain of 28% compared to the number of contracts at the end of 2013 (76,200). Fleet management and private clients remain the growth drivers for this performance.Leasing revenue rose 6.0% during the first nine months to EUR 310.5 million (9M 2013: EUR 292.9 million). Including the revenue from the sale of used leasing vehicles, which is usually subject to fluctuations, the Business Unit generated revenues of EUR 411.3 million (9M 2013: EUR 406.1 million; +1.3%). EBT for the first three quarters improved by 11.5% to EUR 15.7 million, after EUR 14.1 million over the same period last year.

About Sixt:
Sixt rent - a- car is represented in over 100 countries worldwide and is expanding its presence continuously.  Their strengths, such as the high proportion of premium brands in the vehicle fleet, the consistent service orientation of the staff and the good price-performance ratio allows the company founded in 1912 an excellent market positioning. The company has partnerships with prestigious addresses in the hotel industry, major airlines and numerous well-known service providers in the tourism sector. 

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