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2015 First Half Results

  • Continued growth in H1 2015 with revenues up 6.2% on an organic basis[1]
  • Significant improvement of Adjusted Corporate EBITDA[2]  up 39.2%[3] vs. H1 2014
  • Success of IPO and completion of refinancing allowing acceleration of its strategy deployment

Highlights

Following the successful completion of its IPO and its refinancing, the Groupe’s corporate leverage has been significantly reduced and is expected to be below 1.5x by the end of 2015 compared to 2.7x at the end of 2014. This has enabled Europcar to reduce its indebtedness, strengthen its capital structure and increase its financial flexibility in order to accelerate its development through the acceleration of its Fast Lane transformation plan, its ability to seize selective opportunities, including for example the potential acquisition of franchisees and the development of new mobility solutions. In the course of July, the Europcar Lab’s acquisition of E-Car Club (EV car sharing in the UK) illustrated its strategy to identify key opportunities to enrich customers’ mobility offers. Through the Fast Lane transformation program, investments have been made to support further growth, including for investments in the accelerated roll-out of InterRent, in the IT system enhancement to better address its customer needs, as well as in Sales & Marketing.  

 

Philippe Germond, CEO and Chairman of the Management Board stated,The results of the first half show significant revenue growth and a continuing improvement of our profitability. Our transformation plan, Fast Lane, which is half way, continues to be deployed and to bear fruits across the Groupe, notably in supporting top line growth and offer differentiation. This first half is an important step for us, one month after the success of our IPO which has confirmed the strength of our leading position in Europe and enables us to accelerate our strategy and deliver an enhanced customer experience. Europcar Groupe is aligned with the guidance disclosed in the framework of its IPO.”

Revenues

Revenue was €961 million for the six months ended June 30, 2015, up 10.5% year on year at reported exchange rates. Based on constant exchange rates for the pound sterling and the Australian dollar, revenue, on an organic basis, increased by 6.2%7, mainly supported by the increase in the number of Rental Days.

The Number of Rental Days significantly increased to 26.0 million in the first half of 2015, representing an increase of 9.6% compared to the first half of 2014. This trend was seen in all of Europcar’s Corporate Countries. Both the Business and Leisure segments benefited from this increase:

  • Increased demand in all corporate segments, and in particular in SME and Vehicle Replacement, in line with the sales strategy implemented by the Groupe;
  • Increased demand on the Leisure segment, supported by the brand Europcar on all distribution channels, and by the accelerated deployment of the InterRent brand throughout the Europcar network.

In the first half of 2015, RPD decreased by 0.9% at constant exchange rates, as compared to H1 of 2014, and by 0.2% at constant exchange rates in the second quarter (as compared to the second quarter of 2014). The change in the RPD was mainly driven by the mix of both customers segments and brands (Europcar and InterRent), while not impacting profitability. The Leisure segment benefited from a high RPD supported notably by the deployment of the ancillary program, while the deployment of InterRent, which provides a lower facial RPD, continues to grow significantly. The Business segment was impacted by the higher contribution of the Vehicle Replacement business that has a longer duration than the average for the segment and which drives a lower RPD.

Net Profit&Loss

Net profit&loss presented a loss of €156.8 million in the first half of 2015, as compared with a loss of €82.0 million in the first semester of 2014 at reported exchange rates. In the first half of 2015, the net loss included non recurring items which are notably the costs associated with the IPO and the reshaping of the capital structure (approximately €92 million), the net negative impact of certain proceedings (approximately €27 million) and reorganization charges linked to Fast Lane transformation plan roll out (€20 million).

You can find the full press release by clicking here ici or on finance.europcar-group.com


 

[1] At constant FX rates and excluding the effect of the consolidation of the acquisition of Europ Hall (a French franchisee).

[2] Adjusted Corporate EBITDA is defined as Recurring Operating Income before depreciation and amortization not related to the fleet, and after deduction of the interest expense on certain liabilities related to rental fleet financing. This indicator includes in particular all the costs associated with the fleet.

[3] At constant exchange rates

 [4] At constant FX rates and excluding the effect of the consolidation of the acquisition of Europ Hall (a French franchisee).

 

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