Europcar reports slight increase in profits for early 2016

Europcar reports slight increase in profits for early 2016

Europcar has reported total revenue amounted to €948 million for the first half of 2016, compared to €961 million in 2015 first semester, representing an increase of 0.5 per cent at constant currency.

This increase is mainly driven by a 0.9 per cent growth in rental revenue, to €883 million, and partly off-set by the decrease of petrol prices.

Significant headwinds and numerous challenges (bad weather conditions in northern European countries, European terrorist attacks and finally doubts on the way out of the Brexit referendum) combined with a softer commercial momentum explained this performance. 

Philippe Germond, chairman of Europcar, stated: “The first semester 2016 confirmed the resilience of our model.

“On the revenues side, Europcar demonstrated a sound growth at constant exchange rate, despite an adverse environment, notably impacted by European terrorist attacks, social movements in France, weaker trading environment, bad weather conditions in northern European countries, and finally Brexit.

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“In the meantime, Europcar continued to accelerate its development with the successful acquisition of Locaroise and Bluemove.

“We pursued also the roll out of the InterRent brand and network.

Rental volume increased by three per cent compared to the first half of 2015, at 26.7 million.

The leisure segment showed a positive evolution over the first half of 2015 on both Europcar and InterRent brands, notably in the European Southern countries.

Compared to the first semester 2015, the trend was less favourable on the corporate side, notably in the United-Kingdom prior to the Brexit Referendum (especially on the car replacement segments), and to a lesser extent on the Belgium perimeter as consequences of the terrorist attacks. 

Germond added: “On a strategic stand point, the company intends to set up a new organisation structured around five business units, more customer and market centric that will ensure sustainable growth and enable us to seize new business opportunities.

“In the weak current market conditions, Europcar has decided to issue a new 2016 guidance, presenting a positive evolution in both top line and Adjusted Corporate EBITDA compared to last year.

“The whole management team is fully confident in the strength and resilience of our business model and our ability to fulfil our ambition to be the preferred partner for every individual mobility need.”