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Sixt Leasing SE: Operating business development in the first half of 2020 in line with expectations

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DGAP-News: Sixt Leasing SE / Key word(s): Half Year Results/Interim Report
12.08.2020 / 08:30
The issuer is solely responsible for the content of this announcement.

Sixt Leasing SE: Operating business development in the first half of 2020 in line with expectations

Pullach, 12 August 2020 - Sixt Leasing SE, a leading provider in online direct sales of new vehicles in Germany as well as specialist in the management and full-service leasing of large fleets, has developed, based on the earnings forecast reduced on 20 July 2020, overall in line with expectations in the first half of 2020. The Group's contract portfolio remained almost stable in the period from the end of December 2019 to the end of June 2020. Consolidated operating revenue declined year-on-year. Consolidated earnings before taxes (EBT) were very significantly below the previous year's level and were burdened in particular by the increase in risk provisions in connection with the residual values of the leasing fleet and by transaction-related costs. The Managing Board continues to expect business development to recover in the second half of the year.

Business development in H1 2020
In the first half of 2020, the expansion of the digital product and service portfolio in particular was further advanced. In the Online Retail business field, Sixt Leasing launched a sales cooperation with PAYBACK via its online platform sixt-neuwagen.de to market a Kia Stonic "VISION" to private customers. In addition, autohaus24.de was honored with the consumer award "Germany's Best Online Portals 2020" in the category "New Car Portals" from the news channel n-tv and the German Institute for Service Quality, and received the rating "High Recommended" in the category "Car Leasing: Online Providers" in the FOCUS-MONEY study "Recommended by Customers". In the Fleet Management business unit, the smartphone app "The Companion" for fleet customers was further developed and, among other things, upgraded with the digital payment function "Shell Payment@Pump". Furthermore, two proven industry experts, Mr. Christian Braumiller and Mr. Michael Poglitsch, could be gained as new Managing Directors of Sixt Mobility Consulting GmbH. In the Fleet Leasing business field, Sixt Leasing expanded its cooperation with BSH Hausgeräte GmbH in the field of e-mobility.

The contract portfolio in Online Retail fell by 5.7 per cent to 41,800 contracts in the period from the end of December to the end of June, particularly burdened by lower new orders due to the economic impact of the COVID-19 pandemic as well as further vehicle returns from the 1&1 campaign conducted in the 2017 financial year. The contract portfolio in Fleet Leasing declined by 2.4 per cent to 39,500 contracts. Fleet Management recorded growth of 4.0 per cent to 53,500 contracts.

Overall, the Group's contract portfolio in Germany and abroad (excluding franchise and cooperation partners) decreased slightly by 1.0 per cent to 134,800 contracts in the period from the end of December to the end of June. The decline from the end of March to the end of June (-0.4 per cent) was slightly lower than in the first three months (-0.7 per cent). Compared to the end of the first half of 2019, the Group contract portfolio recorded a significant growth of 6.8 per cent at the end of the first half of 2020. The main reason for this was the acquisition of Flottenmeister GmbH in the fourth quarter of 2019.

Consolidated revenue in the first half of 2020 fell by 13.5 per cent year-on-year to EUR 370.3 million. This is mainly due to the decline in vehicle sales revenues in the Leasing business unit, which comprises the business fields Online Retail and Fleet Leasing. On the other hand, sales revenues in the Fleet Management business unit increased significantly. Overall, sales revenues from leasing returns and marketed customer vehicles in fleet management fell by 20.1 per cent to EUR 156.2 million. This decline is in particular due to the very strong first quarter of the previous year, with a very high number of leasing returns sold in the Online Retail business field, and to the restrictions imposed on stationary motor vehicle trading due to the COVID-19 pandemic. Consolidated operating revenue (excluding sales revenue) decreased by 7.9 per cent to EUR 214.1 million. The "lockdown" caused by the COVID-19 pandemic had a major impact on the decline in this regard. Among other things, this led to a significant reduction in vehicle use, which in particular caused a decline in use-related revenues, such as fuel revenues, for example.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) fell in the first six months of 2020 by 7.2 per cent to EUR 106.7 million compared to the same period last year. Consolidated earnings before taxes (EBT) recorded a decline of 79.7 per cent to EUR 2.9 million. This was mainly due to the increased risk provisions in a mid single-digit million euro range and to burdens from one-off transaction-related costs in a low to medium single-digit million euro range, which were incurred in connection with the completion of the voluntary public takeover offer by Hyundai Capital Bank Europe GmbH (HCBE) in July 2020 and which had in part already to be considered in the accounting in the first half of 2020. Adjusted for these two one-off and extraordinary non-operating effects, the correspondingly adjusted earnings before taxes in the first half of 2020 amounted to EUR 11.2 million. Furthermore, the lower EBT is in particular due to the volume effect in vehicle sales described above, and increased marketing expenses at the beginning of the year. The operating return on revenue in the first six months of 2020 thus amounted to 1.3 per cent (-4.7 percentage points). Consolidated profit decreased by 83.2 per cent to EUR 1.7 million.

Michael Ruhl, CEO of Sixt Leasing SE: "Our Group contract portfolio remained almost stable in the first half of 2020 despite the corona pandemic. We are confident that the market environment will continue to ease in the second half of the year. Our new major shareholder will support us in continuing to successfully implement our 'DRIVE>2021' strategy program."

Growth prospects with new major shareholder
According to the last publication under capital market law, HCBE holds just over 92 per cent of the ordinary shares and voting rights of Sixt Leasing SE since the completion of the voluntary public takeover offer. The strategic partnership with the new major shareholder enables Sixt Leasing to jointly exploit new growth opportunities. The integration of Sixt Leasing into the group of the two international and financially strong groups Santander and Hyundai also offers the opportunity to further optimise the Company's financing structure.

Outlook
For the 2020 financial year, the Managing Board continues to expect a slight increase in the Group's contract portfolio and consolidated operating revenue to be approximately on the previous year's level. However, in accordance with the reduced earnings forecast issued on 20 July 2020, the Managing Board assumes that the earnings forecast published on 20 March 2020 cannot be realised in regard to EBT and that the 2020 annual result will also be burdened by further one-off transaction-related costs in the second half of 2020 to the expected extent. The one-off transaction-related costs in the first half of 2020 are included in the reduced earnings forecast.

The assumptions and uncertainties pertaining to the COVID-19 pandemic described in the Risk and Opportunities Report of the Half-Yearly Financial Report 2020 also apply to the forecast. This includes in particular the assumption that business development will recover in the second half of the year.

The full half-year report can be downloaded from https://ir.sixt-leasing.com/interim-reports.

---

About Sixt Leasing:

Sixt Leasing SE based in Pullach near Munich is a leading provider in online direct sales of new vehicles in Germany as well as specialist in management and full-service leasing of large fleets. With tailor-made solutions, the company enables the longer-term mobility of its private and corporate customers.

Private and commercial customers use the online platforms sixt-neuwagen.de and autohaus24.de to lease new vehicles affordably. Corporate customers benefit from the cost-saving leasing of their vehicle fleet and from efficient fleet management.

Sixt Leasing SE (WKN: A0DPRE / ISIN: DE000A0DPRE6) has been listed in the Regulated Market of the Frankfurt Stock Exchange (Prime Standard) since 7 May 2015. In fiscal year 2019, the Group generated consolidated revenue of EUR 824 million.

www.sixt-leasing.com


Contact:

Sixt Leasing SE
Investor Relations
+49 89 74444 4518
ir@sixt-leasing.com


The Sixt Leasing Group in H1 2020 at a glance1

 

 

 

 

Revenue development
in EUR million

H1
2020

H1
2019

Change
in %

   Operating revenue

214.1

232.5

-7.9

   Sales revenue

156.2

195.5

-20.1

Consolidated revenue

370.3

428.0

-13.5

   Thereof Leasing business unit

318.4

379.7

-16.1

      Thereof leasing revenue (finance rate)

109.5

112.0

-2.3

      Thereof other revenue from leasing business

80.7

95.4

-15.5

      Thereof sales revenue

128.3

172.2

-25.5

   Thereof Fleet Management business unit

51.8

48.3

7.4

      Thereof fleet management revenue

23.9

25.0

-4.3

      Thereof sales revenue

27.9

23.2

20.0

 

 

 

 

Earnings development
in EUR million

H1
2020

H1
2019

Change
in %

Fleet expenses and cost of lease assets

233.1

284.1

-17.9

Personnel expenses

21.1

21.3

-1.1

Net other operating income/expense

-9.4

-7.6

-22.6

Earnings before interest, taxes, depreciation and amortisation (EBITDA)

106.7

115.0

-7.2

Depreciation and amortisation expense

98.3

94.9

3.6

Net finance costs

-5.5

-5.9

6.5

Earnings before taxes (EBT)

2.9

14.1

-79.7

   Thereof Leasing business unit

1.3

12.2

-89.0

   Thereof Fleet Management business unit

1.5

1.9

-19.6

Operating return on revenue (in %)2
 

1.3
 

6.1
 

-4,7 points

Income tax expense

1.1

3.7

-69.7

Consolidated profit

1.7

10.4

-83.2

Earnings per share (in EUR)

0.08

0.51

-

 

 

 

 

Contract portfolio
 

30 Jun 2020

31 Dec 2019

Change
in %

Group contract portfolio

134,800

136,200

-1.0

   Thereof Online Retail business field

41,800

44,300

-5.7

   Thereof Fleet Leasing business field

39,500

40,400

-2.4

   Thereof Fleet Management business unit

53,500

51,500

4.0

 

 

 

 

Balance sheet figures
in EUR million

30 Jun 2020

31 Dec 2019

Change
in %

Total assets

1,423.39

1,328.88

7.1

Lease assets

1,103.61

1,119.67

-1.4

Financial liabilities

1,053.66

948.21

11.1

Equity

212.4

229.2

-7.4

Equity ratio (in %)
 

14.9
 

17.2
 

-2.3 points

 

 

 

 

Cash Flow
in EUR million

H1
2020

H1
2019

Change
in %

Gross Cash flow

97.3

101.4

-4.0

Investments in lease assets

207.5

194.9

6.5

 

 

 

 

 

1 Rounding differences possible
2 Ratio of EBT to operating revenue


12.08.2020 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.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

Language:

English

Company:

Sixt Leasing SE

Zugspitzstraße 1

82049 Pullach

Germany

Phone:

+49 (0)89 744 44 - 4518

Fax:

+49 (0)89 - 744 44 - 8 5169

E-mail:

ir@sixt-leasing.com

Internet:

http://ir.sixt-leasing.de

ISIN:

DE000A0DPRE6, DE000A2DADR6, DE000A2LQKV2

WKN:

A0DPRE

Listed:

Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange; Luxembourg Stock Exchange

EQS News ID:

1115315


 

End of News

DGAP News Service

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