Europcar sees revenues increase in third quarter

Europcar sees revenues increase in third quarter

Europcar has seen reported revenue of €794 million, up 13.5 per cent at constant exchange rates, for the third quarter of financial 2017.

Quarter three adjusted corporate EBITDA stood at €164 million, up 3.9 per cent at constant exchange rates.

Caroline Parot, chief executive, Europcar Group: “We delivered strong revenue growth in the third quarter thanks to a supportive summer season across most of our European markets.

“This performance was supported by a dynamic leisure momentum across all our brands. 

“Despite a highly competitive environment, particularly across our southern European markets, we were able yet again to show strong resilience and an ability to generate robust free cash flow generation and sound corporate adjusted EBITDA growth.”

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For the first nine months of the year, the adjusted corporate EBITDA margin was 12.4 per cent, excluding New Mobility.

Quarter three net income wasf€105 million, up 9.2 per cent year-on-year, while nine month net income was €78 million, down 21 per cent.

This was due to €42 million of transformational M&A related fees and one-off restructuring costs

Parot added: “As expected, we closed the Buchbinder transaction in September and are confident that we will be able to close the Goldcar transaction by the end of the year.

“In October, we successfully raised the necessary financing for these two transactions in the bond markets and also took the opportunity to refinance our existing fleet bond generating significant financing cost savings going forward.”

Europcar has continued to focus on improving its customer service through some dedicated programmes such as Customer First and Air Force One (now focused on the group’s 40 largest airport stations).

The group’s leisure business, responsible for 59 per cent of all rental revenue in the first nine months of 2017, acted as the main growth engine as it benefited from a strong market momentum.