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Q1 2017: Europcar starts the year with solid revenue growth and the acquisition of its Danish franchisee


Q1 2017: Europcar starts the year with solid revenue growth and the acquisition of its Danish franchisee

  • Revenue of €439 million up 6.6% at constant exchange rates with organic growth of 3.2%
  • Adjusted Corporate EBITDA at -€6 million versus -€5 million in Q1 2016
  • Net income at €19 million versus -€20 million in Q1 2016
  • Europcar confirms its guidance for 2017
  • Acquisition of Europcar’s Danish Franchisee
  • LTM Net Debt / EBITDA below 1x leaves ample headroom to finance further acquisitions


Saint-Quentin-en-Yvelines, May 9, 2017 – Europcar (Euronext Paris: EUCAR) today announced its results for the first quarter 2017.


For Caroline Parot, Chief Executive Officer of Europcar Group:

“We start the year on a solid footing. Our revenue growth of 6.6% is driven by a strong momentum across all of our three major business units. We have continued to deliver significant improvements in both fleet costs per unit down 3.4% YoY and fleet utilisation which is up 140 bps YoY at the Group level. As planned, we have accelerated our investments into our InterRent network as well as into the digitalisation of our customer journey.

We are also pleased to announce the acquisition of our Danish franchisee and delighted to welcome Europcar Denmark as our newest corporate country. Together with the existing management team, we aim to support the continued growth of the business and to achieve significant synergies with our other corporate countries.

Only 4 months after buying our Irish franchisee, we take yet another step in our dynamic acquisition plan, which not only strengthens our European leadership but also brings us a little closer to our 2020 Ambition.

By continuing to focus on improving our customers’ satisfaction and implementing our strategic priorities, we demonstrate our ability to deliver solid revenue growth across all of our business units, as well as an accelerating momentum on the acquisition front. As a result, we confirm all of our objectives for 2017 and feel confident that our current leverage gives us ample headroom to pursue our acquisition strategy”.


All data in €m, except if mentioned

Q1 2017

Q1 2016


Change at constant currency*

Number of rental days (million)





Average Fleet (thousand)





Financial Utilization rate





Total revenues





Rental revenues





Adjusted Corporate EBITDA





Adjusted Corporate EBITDA Margin





Last Twelve Months Adjusted Corporate EBITDA





LTM Adjusted Corporate EBITDA Margin





Operating Income





Net profit/loss





Corporate Free Cash Flow





Corporate Net Debt at end of the period





Corporate net debt / EBITDA ratio





Q1 2017 highlights


The Group generated revenues of €439.3 million in the first quarter of 2017, up 6.6% at constant exchange rates compared with the first quarter of 2016. On an organic basis, ie at constant exchange rates, constant perimeter and excluding petrol, the Group revenues grew by 3.2%. 

This significant increase in Group revenues was the result of solid growth across all the Group’s major business units with Cars growing by 4.3%, Vans & Trucks growing by 4.5% and InterRent growing by a stellar 49%.

More importantly, these solid revenue numbers were delivered thanks to good momentum in both the leisure and corporate businesses and are once again proof of the strength and robustness of the Group balanced business model.

The number of rental days increased to 12.9 million in Q1 2017, up 9.3% versus Q1 2016. This growth in rental days was spread across all the key divisions with cars growing 6.8%, Vans & Trucks growing 9.7% and InterRent growing 51%. On the other hand, Revenue per rental day decreased by 3.6% at Group level, mostly impacted by (1) a 4.8% decline in the Vans & Trucks business unit reflecting a strategic focus on extending utilization and rental durations, and (2) a 2.3% decline in the Cars business unit as a result of a lower pricing environment linked to the strategy in Q1 17 versus Q1 16 which included Easter week-end.


Adjusted Corporate EBITDA[1]

Q1 2017 Adjusted Corporate EBITDA declined by €1.5m to -€6.2 million compared to -€4.7 million in Q1 2016. This slight decrease was caused by the positive impact of Easter on Q1 16, the additional investment into the Group customer journey digitalization programme and the InterRent network in Q1 2017 vs Q1 2016 and the net losses incurred in the New Mobility division.

The Group’s profitability was positively impacted by a 140 basis points increase in the Group’s fleet financial utilization which reached 74.6% in Q1 2017 versus 73.2% in Q1 2016, which was mostly due to a significant improvement in utilisation in the Vans & Trucks business in line with the shift in strategy for the business unit and the top line growth strategy in order to manage the shift of Easter from March last year to April this year. Also worth noting is the good control of the Group’s fleet operating costs as well as the good fleet negotiations that occurred in the quarter which enabled the Group to reduce its fleet costs per unit by 3.4% in the first quarter of 2017 versus the first quarter of 2016. 


Corporate Operating Free Cash Flow

Q1 2017 Corporate Operating Free Cash Flow was -€27 million compared to 0 million in Q1 2016 impacted by a doubling of the non-fleet capex which reached €12 million in Q1 2017 versus €6 million in Q1 2016. This significant increase in capex mostly related to investments into the   IT infrastructure and the network and is fully in line with the Group strong ambition in terms of digitalisation of the customer journey.

Net income

In Q1 2017, the Group posted a net profit of €18.6 million, compared to a €20.1 million net loss in Q1 2016. This significant improvement was caused by the release of a €45 million provision linked to the absence of appeal following the French Antitrust Authority (ADLC) dismissal decision in its case against the French car rental industry in February 2017.

Net debt

Corporate net debt continued to decrease YoY to reach €235 million as of March 31, 2017 (vs. €247 million as of March 31, 2016) as a result of the Group’s strong free cash flow generation.

The fleet debt was €3,014 million as of March 31, 2017 vs. €2,775 million as of March 31, 2016. This increase reflects the higher number of vehicles in the fleet in order to sustain the growth of the Group’s operations and the fleet mix evolution.

2017 guidance confirmed

Europcar confirms its four financial targets for 2017 compared to 2016:

– Accelerating organic revenue growth ie above 3%

– Increase in adjusted corporate EBITDA margin (excluding New Mobility) ie above 11.8%

– A corporate operating free cash flow conversion rate above 50%

– A dividend payout ratio above 30%

The Group also reiterates its strategic ambition to continue the roll out of its acquisition plan in order to increase value creation for its shareholders.

Acquisition of Europcar’s Danish Franchisee

Europcar also announces today the acquisition of its Danish franchisee, one of its biggest in terms of revenue. After the acquisition of its Irish franchisee in December 2016, the Group accelerates the extension of its corporate network from 10 to 11 countries and strengthens its car rental and Vans & Trucks footprint.

Europcar Denmark is the market leader with circa 30% market share in Denmark. It has a strong nationwide branch network of 40 branches throughout Denmark both locally and at all the major airports. The company operates an average rental fleet in excess of 6,000 vehicles covering cars, vans and specialist vehicles. It has a strong customer base, of both leisure and B2B customers. In 2016, Europcar Denmark generated revenues of 60 million euros.

Europcar Denmark’s particular strengths include its vastly experienced management team and the strong relationships it has developed in the entertainment & film/music production and construction industries which today represent a significant part of the business.


[1] Adjusted Corporate EBITDA is defined as current 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. See “Reconciliation with IFRS” attached.

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