Financial Results for the third quarter 2015
- Strong Q3 results in line with Europcar expectations with a rental revenue growth of 6.1% at constant exchange rate.
- Group southern countries took advantage of the leisure growth momentum for Europcar brand, accelerated by the successful deployment of InterRent.
- Continued Growth of Adjusted Corporate EBITDA up 9.5% Q3 2014 at €154.2 million.
- 2015 outlook upgrade with FY 2015 Adjusted Corporate EBITDA expected to be slightly above €250 million (versus around €245 million previously).
- Acceleration of Europcar customer strategy with the appointment of Jan Löning, as Chief Customer Journey Officer.
Philippe Germond, Chairman of the Management Board of Europcar Groupe commented: Europcar has achieved a strong third quarter, with a solid organic total revenues growth of 4.2% compared to Q3 2014 and a high EBITDA margin, in line with our commitment to generate a steady and profitable growth. The performance achieved in Q3 combined with the acceleration of our Transformation Plan, Fast Lane, enables us to upgrade the guidance we have committed to previously. Thanks to the success of the IPO, we have now the capability to accelerate our strategy deployment on the fast-growing mobility market while focusing on top line growth and offer differentiation. In this framework, the appointment of a Chief Customer Journey Officer is a key step in our customer strategy.
In addition of its solid financial results, Europcar pursues the deployment of its transformation program, Fast Lane. In this framework, leaning on the capillarity of its network and operational excellence, Europcar strengthened its position in the urban mobility through initiatives, emblematic of Europcar development strategy:
- Reshaping of AutoLiberté, an urban mobility solution based on a subscription model developed on the French market. It represents a real option to a car ownership allowing customers to have a vehicle that meets their needs whenever they want, with specific rates. Enhancing AutoLiberté customers journey, a partnership has been signed with Mobypark, a car park booking platform.
- Integration of electric vehicles in Europcar fleet to provide its customers with greener mobility solutions, especially in urban area. Some examples of recent initiatives: integration of Bluecars in Paris, Nissan LEAF cars in Birmingham and the development of a new electric car sharing in Malaga (Spain).
Furthermore, in order to strengthen and accelerate its Customer Journey strategy, Europcar has decided to appoint Jan Löning, as Chief Customer Journey Officer. Jan has a solid experience particularly in digital and retail companies like Avis or Fnac.com. He will notably dedicate his skills to enhance and differentiate the customer experience to strengthen the loyalty of Europcar customers and expand the customer portfolio.
Total revenues are at €692.6 million in Q3 2015, up 4.2%5 compared to Q3 2014 on an organic basis while rental revenue is up 6.1% at constant exchange rate, mainly supported by the increase in the number of Rental Days.
The Number of Rental Days reached 17.8 million in Q3 2015, representing an increase of 7.6% compared to Q3 2014, all countries increasing. It reflects a strong demand on the leisure segments for Europcar brand on all distribution channels and by the accelerated deployment of InterRent, Europcar low cost brand. The business segment enjoyed in the meantime an increase in volumes, in particular for SME and vehicle replacement, in line with our profitable sales growth strategy.
Nominal RPD is slightly declining reflecting the diversified business mix sales strategy notably InterRent deployment. In Q3 2015, it decreased by 1.4% at constant exchange rates, as compared to Q3 2014.
Net Profit & Loss
The net income amounted to €99.4 million in Q3 2015 compared with €45.1 million in Q3 2014. This increase reflects the growth of the Adjusted Corporate EBITDA and the improvement of the financing conditions following the reshape of the capital structure. In Q3 2014, the net income was also impacted by non-recurring costs associated with Fast Lane program and fleet refinancing.
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 Rental revenue corresponds to income from vehicle rentals net of discounts and rebates. The total revenue includes in addition to rental revenue, other revenue associated with car rental (such as petrol), and royalties received from Europcar franchisees.
 Adjusted Corporate EBITDA is defined as Recurring Operating Income before depreciation and amortization not related to the fleet, and after deduction of the interest expense on certain liabilities related to rental fleet financing. This indicator includes in particular all the costs associated with the fleet.
 At constant Exchange rate.