Mobility services firm Sixt has increased its forecast for
the 2021 financial year after the company’s performance ‘exceeded market
expectations’ in light of the Covid-19 pandemic.
According to Sixt’s
managing board, operating revenues for the year are expected to be between €2
billion and €2.2 billion, up from the previous forecast of €1.95 billion to €2.1
billion, with earnings before taxes predicted to be in the range of €300
million to €330 million – far exceeding the previous expectation of €190
million to €220 million.
The company says
the update puts its forecast in line with its pre-pandemic financials of 2019,
which was a record year for Sixt.
Positivity in
the forecast stems from stronger-than-expected performance in the holiday
sector starting in Q2 and continuing in Q3, but Sixt has reported it is already seeing an
uptick in business travel demand in Germany as the autumn approaches. The
company said it is basing its predictions on the assumption that “the further
course of the Covid-19 pandemic will not again lead to profound restrictions in
travel”.
However, Sixt
believes there will be uncertainty in 2022 as a result of “bottlenecks” at vehicle
manufacturers caused by a shortage of semiconductors.
Co-CEO
Alexander Sixt commented: “The positive business development clearly proves
that people’s mobility behaviour is approaching the pre-crisis period again,
for private as well as business travel. This is also evident, for example, when
looking at the airlines, which are gradually increasing their flight schedules
to pre-Covid levels.”
Professor Dr
Kai Andrejewski, CFO, said Sixt had made “the right strategic decisions” during
the pandemic, which allowed it to benefit from the market’s recovery.