For 2020, Europcar Mobility Group posted total revenue of €1.76 million ($2.1 billion), down 45% compared to revenue in 2019. This translated to net income of -€645 million (-$768 million) and adjusted corporate EBITDA of -€172 million (-$205 million) versus €389 million ($464 million) in 2019.
Europcar realized about €1 billion in cost savings in 2020, exceeding initial cost reduction projections of €850 million, while reducing cash burn from €175 million in the second half of 2020 versus €371 million the first half.
In the fourth quarter of 2020, Europcar reduced fleet 39% year over year to 180,000 vehicles, which drove an overall utilization of 70% in the quarter versus 72% in the fourth quarter of 2019.
Europcar is offering “a cautious view” on the first half of 2021 “given still limited visibility on the timing of the demand recovery and reduced lead time(s) for customer booking.” For 2021, Europcar anticipates revenue growth relying on these segments: domestic, Vans & Trucks, Professional and Proximity customers.
Europcar reports a strong capital structure moving forward, reducing its indebtedness in “record time” through €1.1 billion corporate debt equitization and a €255 million new money equity in February.
“Regarding 2021, although vaccination campaigns are being rolled out, our views remain cautious,” said Caroline Parot, CEO of Europcar Mobility Group, in a statement. “Nevertheless, I am confident that we will rebound strongly as soon as the sanitary (and) market conditions improve, as demonstrated by our U.S. business.”
Europcar owns the U.S.-based Fox Rent A Car discount leisure brand.
Originally posted on Auto Rental News