DGAP-News: Sixt SE: Despite positive business performance in January and February, Q1 2020 at SIXT clearly affected by effects of the Corona crisis
DGAP-News: Sixt SE
/ Key word(s): Quarter Results
Despite positive business performance in January and February, Q1 2020 at SIXT clearly affected by effects of the Corona crisis
Pullach, 13 May 2020 - For Sixt SE, the first quarter of the current fiscal year was very much affected by the effects of the worldwide Corona crisis. Once government measures to contain the pandemic came fully into force, such as worldwide travel warnings, border-crossing restrictions, stay-at-home orders and mobility restrictions, plus the shutdown of the economy - business slumped dramatically overnight in mid-March. Although the Group-wide revenue slump for Q1 was just a moderate 3.4% compared with last year's quarterly figure thanks to an encouraging start to the year, which even outstripped internal expectations, the earnings situation of the international mobility service provider was still clearly characterised by the cost basis prior to the slump in demand in March. Moreover, the effects of the immediately initiated and extensive cost saving and adjustment measures for the rental fleet as well as for personal and material costs will only come into full effect in the coming quarters. Against this background, the Group's earnings before taxes (EBT) stood at EUR -5.1 million. This means that SIXT is staying within the revised budget plan of March and can therefore confirm its expectations for the full fiscal year 2020. This is based on the assumption that as of the important third quarter one will see a gradual and noticeable rebound in demand. Erich Sixt, CEO Sixt SE: "During the first two months of 2020 the world was still in order for SIXT, as the growth course of the previous years even exceeded our own expectations. Following the de facto halt to international travel in March, we reacted very quickly to the worldwide slump in demand. We still expect that demand will normalise step by step during the second half of the year. This is obviously dependent on political decisions to further ease limitations on travel, especially in cross-border trips. Thanks to the high adaptability of our business model, we shall be well prepared once demand rebounds. This will allow us to get back onto the market quickly once the crisis subsides." Introductory Note: As announced, Sixt SE has sold its 41.9% stake in Sixt Leasing SE to Hyundai Capital Bank Europe GmbH which, in the course of this process, submitted a voluntary public takeover bid for all shares in Sixt Leasing SE. Completion of the transaction is expected during the second half of the year 2020. For this reason, the previously fully consolidated investment will be reported as a discontinued operation from the first quarter of 2020 in accordance with the provisions of IFRS 5. The following key figures therefore include the Mobility Business Unit and the other activities of the SIXT Group, but no longer the former Leasing Business Unit. The result as well as the assets and liabilities of the Leasing Business Unit are shown separately in the Balance Sheet and Income statement. The figures for last year have been adjusted accordingly.
Demand from private customers for flexible rental vehicle options and carsharing continues to grow
Alexander Sixt, Member of the Executive Board (CAO) of Sixt SE: "Right after the start of the crisis we launched an extensive savings programme. We downsized our biggest cost driver, the fleet, by 13% compared to the average number of vehicles in the previous year already in Q1 to instantly free liquidity. This very clearly demonstrates the high adaptability of our business model. At the same time, we also initiated extensive savings efforts to bring down personnel and material costs already in March with an annualised effect of over EUR 150 million. These effects will be very evident in the following quarters. Alongside the massive reduction of our costs we reacted immediately at the start of the Corona crisis by extending and adjusting our product range to meet the mobility requirements of people in the best possible way even under the current conditions. Our special focus is on expanding our long-term rental offers such as the car-subscription and flat models as well as the extension of our carsharing. The demand for both products is already on the level before the Corona outbreak." Syndicated loan secures financial flexibility Sixt Leasing: minimum acceptance threshold for voluntary public takeover bid reached For the full fiscal year 2020, SIXT confirms its previous expectations and expects to see a sharp decline in consolidated operating revenue compared to last year (discounting the discontinued Leasing Business Unit). Moreover, the Managing Board expects Group-EBT to be clearly positive, even though very strongly below than that of last year (excluding the positive earnings effect from the planned sale of the stake in Sixt Leasing SE). This outlook is based on the assumption that the significant restrictions on private and business travel in the markets of relevance for SIXT will gradually be eased again during the course of 2020 and that demand for mobility products will normalise again step by step. This premise is obviously subject to uncertainty, as no one can foresee the further development of the worldwide pandemic - all the more so as politicians have so far failed to come up with a concrete roadmap as to when travel and mobility restrictions should be comprehensively eased and the economy revived on a larger scale. Of great significance for SIXT will be the third quarter, which is usually a strong quarter in seasonal developments. For 2021 the Managing Board continues to expect consolidated operating revenue to increase substantially again and Group-EBT to see a slight increase. Projections for both are compared to the previous record year of 2019 and discounting the discontinued Leasing Business Unit. Today Sixt SE published its Quarterly Statement as of 31 March 2020 on its website at http://ir.sixt.com in the section "Financial Reports." Julia Hoffstaedter The SIXT Group at a glance
1 Value of vehicles added to the rental fleet
13.05.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
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.com |
ISIN: | DE0007231326, DE0007231334 Sixt Vorzüge, DE000A1K0656 Sixt Namensaktien, 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 |
EQS News ID: | 1043107 |
End of News | DGAP News Service |
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1043107 13.05.2020
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