Europe’s largest car rental business posted a first-quarter loss of €21 million, but management says it’s in line with expectations.
Europe’s largest car rental business Europcar posted a first-quarter loss of €21 million, far greater than its loss of €6 million in the same period last year.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for the first three months of the financial year stood at €24.5 million.
This was, however, in line with the French company’s management expectations as it completed a major acquisition of the Spanish rival Goldcar, Reuters reports.
There was also a rise in digital transformation spending and a negative impact from the organic growth of Europcar’s existing low cost and vans and trucks segments. But overall revenues at the car rental giant came in at €556 million, up 28%.
“Our Q1 results are fully in line with our expectations at this stage and were factored in our 2018 outlook,” claimed Caroline Parot, Europcar Group’s chief executive.
Alternative to vehicle ownership
“Europcar Group is pursuing and accelerating its transformation as a global provider of mobility services,” the chief executive continued.
She added: “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.”