Pullach, 16 March 2020 – Over the preceding fiscal year 2019, the international mobility service provider SIXT clocked up another record year and continued on its consistent growth course. According to preliminary figures, consolidated operating revenue came to around EUR 2.95 billion and thus outperformed the consolidated operating revenue of fiscal 2018 (EUR 2.60 billion, +13.3%) significantly and in line with expectations. Despite the significant investments in foreign expansion and the digitisation of the mobility services, Group earnings before taxes (EBT) came to EUR 337 million, and were thus on a par with last year’s figure after adjustment for the DriveNow sale (EUR 336.7 million, reported EUR 534.6 million). As planned, Sixt SE will provide a detailed report on 25 March 2020 on the preliminary figures for fiscal 2019 as well as an outlook for the current fiscal year.
The spread of the COVID-19 virus is affecting the tourism and mobility industry globally and therefore also demand for the mobility services offered by the SIXT Group, in particular at airports. Due to the Corona crisis, the Managing Board of SIXT SE expects to see a strong decline in consolidated operating revenue for full fiscal 2020 compared with last year (not taking into account the discontinued Leasing Business Unit). At the same time, the Managing Board expects Group EBT to be highly positive, even though substantially lower than last year (without taking into account the positive effect of the planned sale of the share in Sixt Leasing SE).
Measurement package for lower costs, higher liquidity and demand-driven products
As a reaction to lower demand, SIXT will substantially reduce the size of the rental fleet and thereby free up capacities and liquidity. SIXT is benefiting here from the short holding period of the vehicles – 6 months as a general rule – as well as its largely fixed buy-back agreements with manufacturers and dealers.
Solid financial position, strong balance sheet
The SIXT Group has a very solid equity ratio, which as of reporting date 31 December 2019 came to around 25% according to preliminary figures (End 2018: 27.8%). This will increase with the sale of the investment in Sixt Leasing SE, the completion of which is expected in the 2nd half of 2020. The scheduled reduction of the vehicle fleet will release additional liquidity, shorten the balance sheet and cut the Group’s net debt level still further, although this is already moderate and below the industry average.
Erich Sixt, CEO of Sixt SE: “The intensity of the Corona crisis is hitting the travel and mobility industry, and with it also SIXT, with an intensity that was unforeseeable a few weeks ago. We have therefore strung together a set of measures at great speed to adapt our investments and costs swiftly and decisively to this difficult situation. Thanks to its high equity ratio and its secure broad financing basis, SIXT holds a very solid financial position to counter the effects of the crisis. In this special situation, it is equally important that we offer our customers solutions that can cover their mobility needs. In times of Corona many customers value the possibility of individual mobility. We are responding to this need with substantially expanded long-term rentals and car subscription models.”
SIXT Central Press Office
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Sixt SE, with its registered office in Pullach near Munich, is a leading international provider of high-quality mobility services. With its products SIXT rent, SIXT share and SIXT ride, the Company offers a uniquely integrated mobility service across the fields of vehicle rental, carsharing and chauffeur services. The products can be booked through one single app, which also integrates the services of its renowned mobility partners. SIXT has a presence in around 110 countries around the globe. The Company is characterised by consistent customer orientation, a lived culture of innovation with strong technological expertise, the high share of premium vehicles in its fleet and an attractive price-performance ratio. The Sixt Group generated revenue of EUR 2.93 billion in 2018 and ranks as one of the most profitable mobility companies worldwide. SIXT SE is the parent company of the Group and has been listed on the Frankfurt stock exchange since 1986 (ISIN ordinary share: DE0007231326, ISIN preference share: DE0007231334). https://about.sixt.de