Surpassing market expectations

Sixt markedly raises forecast for 2021

Positive outlook: Sixt shows more optimism as market recovery continuous.
Positive outlook: Sixt shows more optimism as market recovery continuous.

Sixt considers itself back on track: The German mobility services provider reports that the updated earnings forecast is already back at the level of the record year 2019. In particular, strong holiday business in Europe and the USA, continued high market price levels and strict cost management lead to strong business development.

According to a Sixt statement, the mobility services business has developed far more positively for the company in recent months than expected in light of the ongoing Covid-19 pandemic, exceeding market expectations. The managing board of Sixt has therefore significantly raised the previous forecast for the 2021 financial year.

Positive trend has continued

The basis for the updated forecast are the current preliminary figures for August as well as the adapted expectations for the coming months of 2021. "The positive trend of the second quarter has fortunately continued in July and August," said Co-CEO Alexander Sixt.

Based on the strong business performance, the Sixt managing board now expects consolidated operating revenues to be €2.0-€2.2 billion (previously: €1.95-€2.10 billion) and earnings before taxes (EBT) for the Sixt Group to be in the range of €300-330 million for the 2021 financial year (previously: €190-€220 million).

According to Sixt, the positive business development can be attributed in particular to the holiday business, which significantly exceeded expectations. In Europe, travel behaviour was less affected by the Delta variant than initially assumed; rather, booking volumes remained at a high level and extended into September due to catch-up effects.

In the USA in particular, the price level, which is higher than in previous years, is only slowly weakening, resulting not only from the high demand but also from the scarcity of vehicles due to the shortage of semiconductors. With the end of the holidays, demand in the business travel sector in Germany is now also picking up slightly. In addition, Sixt continued to benefit from the effects of strict cost management.

No more profound restrictions in travel expected

Due to the very high uncertainties about the further course of the Covid-19 pandemic, Sixt was not able to issue a forecast for the current financial year until July 2021. The updated forecast for the 2021 financial year has now been prepared on the basis of the current market environment and is based in particular on the assumption that the further course of the Covid-19 pandemic will not again lead to profound restrictions in travel.

With regard to the 2022 financial year, in addition to the imponderables regarding the pandemic development, there is still great uncertainty about the extent and duration of the supply bottlenecks at vehicle manufacturers caused by the semiconductor shortage and the resulting effects on vehicle availability and market price developments in the industry.