Europcar announces profit despite ‘significant headwinds’
Europcar made a net profit of €3 million in the first half of the year, which compared with a loss of €157 million during the same period last year.
Rental revenue increased by 1% despite adverse conditions, including various European terrorist attacks and Brexit.
As it announced its half-year results, the car rental firm revealed it intends to set up a new organization structure around five business units: BU Cars, BU Vans & Trucks, BU Low Cost, BU Mobility and BU International coverage.
It said this would make it more customer and market focused to sustain growth and enable it to ‘seize new business opportunities’.
In the first half of the year, total revenues came to €948 million compared to €961 million in the first half of last year. "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 explain this performance," it said.
The number of rental days rose 3%, with the leisure segment growing the most. On the corporate side, notably in the UK prior to the EU referendum and, to a lesser extent, around Belgium following the terrorist attacks, it was less strong.
The company said it expects a ‘slight’ increase in revenue for the full year, adjusted EBITDA above last year’s €251 million and a dividend payout ratio of at least 30% of net income.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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