Europcar sees losses widen in first quarter | News


Europcar has reported a loss of €21 million for the first quarter of 2018.

The figure compares to a loss of €6 million for the same period last year.

Revenue at the car rental giant was €556 million for the first three months of the financial year, up 28 per cent at constant exchange rates.

Caroline Parot, chief executive, Europcar Group: “Europcar Group is pursuing and accelerating its transformation as a global provider of mobility services.

“Our aim is to become the preferred mobility service company for our customers, offering an attractive alternative to vehicle ownership with a wide range of services ranging from vehicle rentals to chauffeur-services, as well as vehicle-sharing and peer-to-peer rental services.”

She added: “During the first quarter of 2018, the Group delivered strong revenue growth of 28 per cent as a result of solid momentum within our recently acquired companies, but also within our historical perimeter.

“Hence, the company’s organic revenue reached 3.9 per cent in the first quarter of the year, mainly driven by the leisure and low-cost segments.”

Adjusted corporate EBITDA at Europcar was impacted by the integration of Goldcar, which as expected significantly increases the seasonality of the group’s profitability generation, as well as a negative mix effect generated by the strong growth of the low cost and the trucks business units.

There was also an increase in digital transformational costs.

Parot continued: “As a result, we confirm all of our targets for 2018 in terms of revenue, adjusted Corporate EBITDA and operating free cash flow conversion.

“In that context of strong confidence in the group’s future prospects, we have decided to launch a tactical share buyback programme, which is consistent with our cash allocation strategy, at a point in time that we find appropriate.”

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