- Oops!Something went wrong.Please try again later.
DGAP-News: Sixt Leasing SE / Key word(s): Half Year Results/Interim Report
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
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
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.
Sixt Leasing SE
1 Rounding differences possible
12.08.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
Sixt Leasing SE
+49 (0)89 744 44 - 4518
+49 (0)89 - 744 44 - 8 5169
DE000A0DPRE6, DE000A2DADR6, DE000A2LQKV2
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange; Luxembourg Stock Exchange
EQS News ID:
End of News
DGAP News Service