Sixt car rental is starting to see some improvement in rental car demand and their second quarter earnings were better than the first quarter. Part of the improvement was due to cost cutting measures, reduced fleet, and a change in the way they do their financing.
According to Erich Sixt, head of the rental car giant, “Sixt has successfully adapted to the change in the market environment. The second quarter has shown that our cost-cutting and efficiency-enhancing measures are starting to take effect. A cautious fleet policy, price increases, customer-focused product innovations and cost awareness are the key factors for continued success in this environment.”
Revenues for the company were up a whopping 7.8% over the first quarter. This is a good sign for the car rental business faced with the worst economic climate of its existence. Their EBT for the second quarter was €22.4 million. If you disregard the fleet size reduction and the financing switch then the numbers go down to €13.9 million, but it’s still a big improvement over the first three months of the year.
Even though this very positive for Sixt, like other rental car companies, the figures were still down from last year. Total revenue industry wide is way down when compared to last year at this time.
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