Wednesday, October 5, 2022

SIXT posts record revenues for first half 2022

SIXT continued on its very strong growth course unabated in the first half of 2022, despite unprecedented challenges, and increased its consolidated revenue by 59.4 per cent to EUR 1.32 billion compared to the same period last year. This represents the strongest first half in the company’s history in terms of revenue.

The international mobility services provider benefited above all from the continued strong international business, in Europe in particular, but also in the United States. Strict cost discipline was another key contributing factor. For instance, operating expenses rose by 47 per cent in the first six months, significantly less than revenue which increased by 59 per cent.

The high demand in all markets could be met because SIXT invested in its own fleet at an early stage and with foresight and was able to further increase the fleet size in the second quarter despite the general shortage of vehicles. Consolidated earnings before taxes (EBT) consequently reached a record level of EUR 223.2 million in the first six months (first half-year 2021: EUR 64.2 million). After the very gratifying first half, the Managing Board confirms the full-year forecast for consolidated revenue in 2022 and expects consolidated EBT to be at the upper end of the range last announced of EUR 380 to 480 million.

SIXT increasingly international: profitable growth in all markets, 70 per cent of revenue generated abroad

Thanks to its ongoing internationalisation, SIXT managed to grow significantly in all foreign markets in the first six months. Besides a significant increase in domestic revenue, the foreign share of consolidated revenue continued to increase from 64 per cent in the same period of the previous year to over 70 per cent. In the first half of the year, 40.6 per cent of consolidated revenue was generated in Europe, 29.8 per cent in the US and 29.6 per cent in Germany.

SIXT thus has a very well-balanced regional revenue structure and was able to gain market share at the same time. In the United States, SIXT is now present at 36 of the 50 most important airports following the opening of further stations. New growth impulses for the North American business are also expected from the launch in Canada; the first station was opened in Vancouver in July. SIXT will gradually expand its presence in the Canadian market with the interim goal of being present at half of the country’s top ten airports. SIXT is growing profitably in all markets. In the United States, revenue increased 66 per cent to EUR 395 million in the first half of 2022 compared to the first half of 2021.

Alexander Sixt, Co-CEO of Sixt SE: “Despite unprecedented geopolitical and macroeconomic challenges, SIXT achieved record revenue and earnings in the first six months. Our internationalisation strategy continues to pay off and the business performance is strong evidence of the robustness of our company. The forward-looking investments in the fleet have contributed significantly to this positive development. We also have the financial room for manoeuvre to further strengthen the investments in our network, our people and our fleet. My personal thanks go to our employees worldwide for their outstanding commitment in these challenging times.”

Konstantin Sixt, Co-CEO of Sixt SE: “The expansion of our international footprint, with foreign revenue now accounting for more than 70 per cent of consolidated revenue, and the consistent digitalisation of our products and services are central pillars of our success. With the recent market entry in Canada, the development of Australia via a strong franchise partner with 160 stations and the successive expansion of our US station network, we are stringently continuing this course. We can therefore benefit more than the competition from the market recovery and gain market share at home and abroad.”

Outlook for the full year 2022

Following the positive performance in the first half of the year, SIXT continues to expect high demand in the summer months. In contrast, there are considerable uncertainties for the final months of financial year 2022 in view of the many impending macroeconomic difficulties in Europe and the US. In addition, limited vehicle availability due to the product shortages of the manufactures remains a challenge. For the full year 2022, SIXT continues to expect a significant increase in consolidated revenue compared to 2021 and expects consolidated EBT to be in the upper end of the range of EUR 380 to 480 million last announced.

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