Revenues rise at Europcar in early 2016

Revenues rise at Europcar in early 2016

Europcar has announced total revenue of to €418 million for quarter one of 2016, compared to a figure of €414 million in the same period of last year.

This represents an increase of 2.3 per cent at constant currency.

Without petrol impact, total revenues would have evolved of 2.8 per cent at constant exchange rate.

This is the eighth quarter in a row of growth for the group and is driven by a three per cent increase at constant exchange rate growth in vehicle rental activities.

This trend reflects the success of the sales initiatives launched within the Fast Lane transformation program.

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The leisure segment showed a positive evolution over quarter one on both Europcar and InterRent brands, while the corporate segment was boosted by the SME program.

Rental days volume increased by 3.5 per cent in the first quarter of this year when compared to quarter one of 2015, at 11.8 million, with a good increase notably in the southern countries and in Australia and New Zealand.

Compared to the first quarter 2015, the trend was less favourable on the corporate side, notably in Belgium due to the terrorist attacks and in the United Kingdom, in particular for the car replacement activities.

Adjusted corporate EBITDA stood at -€4.7 million versus - €3.7 million in quarter one of 2015, in a quarter which is traditionally a small one for Europcar business.

Adjusted corporate EBITDA in quarter one of 2016 reflects the continuing increase in revenues, the well managed fixed and variable cost bases, and the decrease in fleet financing interest expenses following past two years refinancing initiatives.

Philippe Germond, chairman, Europcar Group commented: “Europcar has achieved sound performance over this first quarter.

“We keep up the deployment of the second phase of our transformation program, Fast Lane, focusing on commercial initiatives and on our customer journey.

“Our low cost brand, InterRent, recorded very good results over the quarter with a growth of 90 per cent of the rental revenue, especially in our Southern European countries, strengthening our ambition on this growing market.

“Furthermore, we have reached a new step in our customer strategy with the choice of a CRM solution aiming at offering a high quality mobility experience in order to create brand preference.

“The recent signing of partnerships with Air Caraïbes and Gulf Air’s FalconFlyer Loyalty Program, allow the group to develop its customer portfolio while enhancing its brand awareness.

“All these initiatives reflect our investments for future growth and make us very confident on the delivering of our 2016 guidance.”