15.03.2018
Sixt SE DE0007231326
DGAP-News: Sixt SE: Sixt records outstanding fiscal year 2017, both for revenue and earnings - further profitable growth through focus on internationalisation and market launch of an innovative mobility platform
DGAP-News: Sixt SE / Key word(s): Preliminary Results/Final Results
Sixt SE: Sixt records outstanding fiscal year 2017, both for revenue and
earnings - further profitable growth through focus on internationalisation
and market launch of an innovative mobility platform
15.03.2018 / 07:30
The issuer is solely responsible for the content of this announcement.
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Sixt records outstanding fiscal year 2017, both for revenue and earnings -
further profitable growth through focus on internationalisation and market
launch of an innovative mobility platform
* Consolidated pre-tax earnings grow disproportionally, up by 31.6% to EUR
287.3 million - operating return on revenue climbs to record figure of
12.4%
* USA records around EUR 322 million revenue and positive earnings
contribution - Sixt already number 4 in the US market
* Successful expansion in Italy with 21 company-owned stations already set
up in first year
* Substantial dividend increase: Shareholders to receive EUR 4.00 per
ordinary share and EUR 4.02 per preference share for 2017, in each case
including a special dividend of EUR 2.05 per share
* Market start of new Sixt mobility platform gearing up for launch
* Consolidated revenue and earnings are expected to increase further in
2018
Pullach, 15 March 2018 - Sixt looks back on an outstanding fiscal year 2017,
which saw all-high record figures for revenue and profitability as well as
key strategic progress. Consolidated earnings before taxes (EBT) amounted to
EUR 287.3 million, some 31.6% higher than the previous year's figure and
significantly above the original expectations. Thanks to growth across the
board at home and abroad, operating consolidated revenue climbed 8.7% to EUR
2.31 billion. Shareholders of the international mobility service provider
are set to benefit from this business performance and excellent equity
capitalisation with a total dividend for fiscal year 2017 of EUR 4.00 per
ordinary share (previous year: EUR 1.65) and EUR 4.02 per preference share
(previous year: EUR 1.67). This includes a special dividend of EUR 2.05 per
share for both share classes. For the current fiscal year, the Managing
Board expects to see further gains in revenue and earnings.
Sixt is presenting the preliminary key figures for the Group's annual
financial statements for 2017 at the Company's annual press conference in
Munich today.
Erich Sixt, CEO of Sixt SE: "2017 was not just another record year for Sixt,
but brought a major leap forward. With a pre-tax return on operating revenue
of over 12% we underlined our position as one of the world's most profitable
mobility service providers. The positive contribution towards earnings from
our business in the USA as well as the highly satisfactory development of
our new corporate country Italy demonstrate that for Sixt expansion and
growth go hand in hand with profitability. Especially the USA offers our
Company enormous growth potential for the coming years. If we utilise it
right, the USA will become the single biggest market for Sixt in a few
years, even ahead of Germany."
Successful international expansion continues
For the first time since its market entry in 2011, Sixt's rental business in
the USA closed the year with a substantial positive result. This was due to
the persistently strong operative growth in the world's biggest vehicle
rental market. Thus, operating rental revenue climbed 11% last year to
around EUR 322 million, which has already made Sixt the fourth largest car
rental company in the USA (source: Auto Rental News). Furthermore, the
concentrated focus on the core business at large, fast-growing airport and
downtown stations also paid off.
At the end of 2017 Sixt had over 51 stations in the USA. During the current
year a new branch office was opened at the airport in San Antonio, Texas
with further stations scheduled for New York, the airports of Denver and
Salt Lake City as well as Hawaii. Seven of the 20 biggest Sixt stations are
already located in the United States.
In Italy, the Company successfully entered the market with its new corporate
country structure in 2017. All in all 21 company-owned rental stations were
set up during the course of the year. The initial focus was on the larger
commercial and holiday destinations in the north of the country. The new
subsidiary recorded a revenue and earnings development in 2017 that
significantly outperformed expectations. In the current year, expansion will
focus on the further development of the station network in the south of the
country, with at least five further stations being added by the middle of
the year.
Other key corporate countries, such as Spain and France, also generated
strong revenue growth in 2017. The total share of foreign business in rental
revenue continued to climb, up to 55.4%
(2016: 53.3%).
One-stop shopping: Sixt prepares new platform for mobility all from one
source
Preparations for the start of a new innovative mobility platform are
steaming ahead. In the course of this year Sixt will make its customers a
new product offer all from one single source and capable of covering a wide
variety of mobility requirements. Such mobility services as carsharing,
classic vehicle rental or transfer services, which hitherto had been
independent products, will in future all be bundled and integrated under one
roof and one brand. For customers this means full flexibility.
Shareholder-friendly dividend policy with special dividend
Subject to the consent of the Supervisory Board, the Managing Board will
propose to the Annual General Meeting on 21 June 2018 an increase in the
dividend for fiscal year 2017 to EUR 1.95 per ordinary share (previous year:
EUR 1.65) and EUR 1.97 per preference share (previous year: EUR 1.67). In
addition, there is a special distribution of EUR 2.05 per share for both
share classes.
On the basis of this proposal, the total dividend pay-out would increase
from EUR 77.8 million in the preceding year to EUR 188.1 million.
Dr. Julian zu Putlitz, CFO of Sixt SE: "Both the planned strong increase in
the ordinary dividend and the distribution of the special dividend reflect
the Group's excellent equity base. This was further increased significantly
as a result of the good earnings performance and the sale of our stake in
DriveNow. This enables us to let our shareholders continue to participate
very attractively in the Company's success in spite of our ambitious growth
plans and the substantial investments in new mobility concepts."
Key Group figures for fiscal year 2017
* Consolidated operating revenue (excluding revenue from the sale of used
leasing vehicles) climbed 8.7% to EUR 2.31 billion (2016: EUR 2.12
billion). This growth is supported by all regions and business units.
The key driving factor was the ongoing strong growth in vehicle rentals
in Western Europe and the USA.
* The Group's total revenue climbed 7.9% to EUR 2.60 billion (2016: EUR
2.41 billion).
* Rental revenue climbed 10.0% and, as in the preceding years,
outperformed market growth to close at EUR 1.69 billion (2016: EUR 1.53
billion). Outside Germany growth was 14.2%, but within Germany, further
intensified sales activities also led to ongoing revenue growth of 5.2%,
up on an already very high level.
* Operating leasing revenue came to EUR 443.9 million, an increase of 5.6%
on the previous year's figure (EUR 420.3 million). The basis for this
was the persistently strong increase of the contract portfolio in the
Online Retail business field (private and commercial leasing customers).
* Consolidated earnings before taxes (EBT), the Sixt Group's principal
success parameter, gained 31.6% and thus outstripped revenue growth. EBT
amounted to EUR 287.3 million (2016: EUR 218.3 million). The operating
return on revenue (EBT to consolidated operating revenue) climbed 2.1
percentage points to 12.4% - a record figure in the industry.
* Group profit improved from EUR 156.6 million to EUR 204.4 million, a
gain of 30.5%.
Outlook for 2018
For the Vehicle Rental business unit Sixt expects the year 2018 to generate
further demand, above all in the dynamic development of foreign operations.
Extra expenses will be incurred from further expansion measures, such as the
extension of the station network in selected countries and the set-up of an
integrated mobility platform for Sixt services.
In 2018, the Leasing Business Unit will lay the foundation for medium-term
contract and earnings growth, in particular in the Online Retail and Fleet
Management business fields, and promote the international orientation. This
requires further investments in IT and human resources, which are reflected
in its result in the short term. Due to the growing number of leasing
contracts, the remarketing of lease vehicles on the used car market is
becoming increasingly important.
Keeping in mind the various growth initiatives within the Sixt Group as well
as the friendly economic conditions, the Managing Board expects 2018 to show
significant growth in consolidated operating revenue over last year. For
pre-tax earnings (discounting the gain from the sale of the DriveNow
investment) the Managing Board expects a slight increase over 2017, given
the exceptionally strong earnings performance in 2017 and the ongoing strong
investments in expansionary measures and new services.
Following the completion of the sale of the 50% interest in DriveNow, Sixt
Group will generate a pre-tax gain of around EUR 200 million in fiscal year
2018. Alongside this one-time effect on earnings, the Managing Board expects
to see no further impact in Group revenue and earnings from the sale of the
interest consolidated at equity.
Contact:
Frank Elsner
Sixt Central Press Office
Tel.: +49 (0) 89 / 99 24 96 - 30
Fax: +49 (0) 89 / 99 24 96 - 32
Email: [email protected]
Note:
The full consolidated financial statements 2017 of Sixt SE will be published
on 27 April 2018.
The most important preliminary figures can be downloaded already today on
our website at http://ir.sixt.eu.
The Sixt Group at a glance
(Preliminary data according to IFRS; rounding differences may occur)
Revenue development Change
in EUR million 2017 2016 in %
Operating revenue 2,309.3 2,123.7 +8.7
Rental Business Unit 1,865.4 1,703.4 +9.5
Thereof rental revenue 1,686.7 1,533.5 +10.0
Thereof other revenue from rental 178.7 169.9 +5.2
business
Leasing Business Unit 733.5 704.2 +4.2
Thereof leasing revenue 227.1 219.3 +3.6
Thereof other revenue from leasing 216.8 201.1 +7.8
business
Thereof sales revenue 289.6 283.9 +2.0
Other revenue 3.9 5.1 -23.8
Consolidated revenue 2,602.7 2,412.7 +7.9
Earnings performance Change
in EUR million 2017 2016 in %
Fleet expenses and cost of lease assets 895.2 850.0 +5.3
Personnel expenses 364.9 334.7 +9.0
Depreciation and amortisation expense 509.7 500.7 +1.8
Net other operating income/expenses -507.8 -471.5 +7.7
Earnings before interest and taxes 325.1 255.8 +27.1
(EBIT)
Net finance costs -37.8 -37.5 +0.9
Earnings before taxes (EBT) 287.3 218.3 +31.6
Thereof rental business unit 250.7 181.0 +38.5
Thereof leasing business unit 30.0 31.6 -5.1
Income tax expense 82.9 61.7 34.4
Consolidated profit 204.4 156.6 30.5
Earnings per share (in EUR) 4.09 3.01 35.9
Other key figures for the Group 31 Dec. 31 Dec. Change
2017 2016 in %
Total assets (in EUR million) 4,491.0 4,028.5 +11.5
Rental vehicles (in EUR million) 2,076.0 1,957.0 +6.1
Lease assets (in EUR million) 1,219.2 1,020.8 +19.4
Equity (in EUR million) 1,177.9 1,079.7 +9.1
Equity ratio (in %) 26.2 26.8 -0.6
points
2017 2016 Change
in %
Investments (in EUR billion)1 6.11 5.68 +7.6
Average number of rental vehicles 114,300 108,000 +5.8
(Group)
Number of rental offices (worldwide)2 2,211 2,200 +0.5
Number of leasing contracts as at 31 132,900 113,600 +17.0
Dec. (Group)
1 Value of vehicles added to the rental and leasing fleet
2 Incl. franchise countries
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15.03.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: Sixt SE
Zugspitzstraße 1
82049 Pullach
Germany
Phone: +49 (0)89 74444-5104
Fax: +49 (0)89 74444-85104
E-mail: [email protected]
Internet: http://ir.sixt.de
ISIN: DE0007231326, DE0007231334 Sixt Vorzüge, DE000A1K0656 Sixt
Namensaktien, DE000A1PGPF8 Sixt-Anleihe 2012/2018,
DE000A11QGR9 Sixt-Anleihe 2014/2020, DE000A2BPDU2
Sixt-Anleihe 2016/2022, DE000A2G9HU0 Sixt-Anleihe
2018/2024
WKN: 723132
Indices: SDAX
Listed: Regulated Market in Frankfurt, Munich; Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Stuttgart, Tradegate Exchange
End of News DGAP News Service
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