Europcar Group reports 28% Revenue Growth in first quarter

Date: 23 MAY 2018posted by Car Rentaledited by WinX

In the first quarter of 2018, the Europcar Group reported a revenue growth of 28 percent due to a solid momentum with its recently acquired companies, and also within its historical perimeter. The company's organic revenue reached 3.9 percent in the first quarter, driven by the leisure and low cost segments of the company. The group made strategic achievements within the execution of their transformation strategy. The strategy delivered immediate results in several key areas.

The group is on track in terms of managing the integration of recent acquisitions and improving their service with the expected synergies. The car rental group has also continued see growth in their net promoter score, which reached a new high in the first quarter. And Europcar group has made significant progress in the digitization of their customer experience and services through the completion and the new roll out of their CRM platform. While the company has seen poor media representation of their image, the company has strived to improve and has taken action and delivered encouraging initial results in the UK. The group generated $655.8 million in revenue in the first quarter of this year, up 28 percent from previous year same time. The significant increase in revenue is contributed by the recent acquisitions made by the group in the last few months of last year. The acquisitions has delivered solid growth across all of its major business units with cars growing by 16 percent, vans and trucks growing by 62 percent and low cost growing by 279 percent.

On an organic basis, Europcar's three major business units of cars, vans and trucks and low cost grow by three-and-a-half percent, eight percent and 18 percent respectively. This year's first quarter has shown a net profit of $2.95 million, how compared to the $21.94 million profit from last year it is quite a decline. The decline was caused by a lower level of adjusted Corporate EBITDA, a higher level of non-fleet D&A and an increase in interest costs on corporate bonds as a result of the financing of the Goldcar acquisition. In February of this year, Europcar sold their remaining 25 percent stake in Car2Go to Daimler Mobility Services for a pre-tax gain of $80.2 million which has also been accounted for the company's first quarter result.

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