SIXT’s Summer Upswing: A One‑Billion‑Euro Milestone
When the sun was shining and travelers were packing bags, SIXT hit a landmark: over EUR 1 billion in revenue for a single quarter—first time all the way. The third quarter alone raked in EUR 1.13 billion, a 13.2% jump from the same period last year.
How the Numbers Look
- Revenue: EUR 1.13 billion (Q3 2023) – matches Q1 & Q2 highs.
- Fleet Size: 189,000 cars on average (excluding franchises); a jump from Q3 2022’s 149,300.
- Rental Prices: Sticking above 2019 levels, keeping profits healthy.
Profitability Deep Dive
The group’s earnings before taxes (EBT) topped EUR 246.9 million in Q3. While a hair lower than the spring‑time peak of EUR 283.1 million from the previous year, the figure still dwarfs the pre‑COVID Q3 of 2019 (EUR 146.6 million) by a whopping 68.5%.
Margin Matters
SIXT’s 21.9% EBT margin for the quarter not only eclipses the usual 10% benchmark but also surpasses the 2019 margin of 18.8%. That’s a win, especially considering the hefty investments and external shocks that hit the market this year.
Bottom Line
With vacationers soaring on the wild waves of summer demand and a fleet flying at record numbers, SIXT’s third‑quarter performance proves the company is not just surviving but thriving—leveraging high‑spend travelers, smart pricing, and a lean strategy to push profit margins past the competition.
Investments and growth initiatives
SIXT’s Fast‑Lane Playbook: A Fresh Take on Their Momentum
1. Getting the Staff Pedal to the Metal
SIXT has rolled out a human‑resource super‑drive—expanding its crew at branches and everywhere else.
In plain terms, the company isn’t just selling cars; it’s selling a friendly, well‑owned service.
2. Marketing on the Fast Lane
The firm unleashed a mega‑marketing blitz, especially in the U.S.
| Metric | Compared to Q3 2022 | Compared to Q3 2019 |
|---|---|---|
| Marketing spend | +49.4 % | +144.5 % |
Florida‑style flair, Lakers‑style hype, and Bulls‑style buzz—all colliding to make SIXT the star of roadside ads.
3. Tech‑Savvy Roads Ahead
SIXT keeps its tech budget steady but the returns are huge:
This means: “We’re not adding bigger pockets of money to tech, we’re squeezing out more smartphone‑friendly rides with little to no extra cost.”
4. Partnerships That Spark: From Courts to City Streets
4.1 Basketball Brains
These alliances help SIXT not only turn heads on the court but also drive brand recognition in a strategically growing U.S. market.
4.2 Branch Boom
SIXT spawned a wave of new branches all over North America:
…and the biggest European downtown hub at Munich (November).
It also claimed the top spot at Nice and Paris‑Charles‑de‑Gaulle airports during the holiday craze of July.
4.3 Together with Blacklane
A neat partnership with the high‑end chauffeur service:
5. Why All This Matters
SIXT’s multi‑pronged strategy—staff, marketing, tech, and partnerships—shows a car‑rent‑company turning into a full‑service travel hub.
It invests 2019‑style in people, 2022‑style in tech, and 2024‑style in brand expansion.
In short: a ride that’s not just about the wheels but about the whole experience—with a laugh, a friendly crew, and a dash of basketball swagger.
“Hit pause, buckle up, and enjoy the ride”—that’s SIXT’s promise, in plain English and casual vibes.
Macro-economic and political influencing factors
Economic Hurdles & Electric Vehicle Woes: Sixt’s Q3 Review
Rising Interest Rates — Summer’s heat got even hotter when global rates shot up, pushing Sixt’s interest expenses skyward by €24.5 million in Q3 2023, a staggering +266 % over the previous year. That’s a lot of extra pennies to pay for borrowing.
Why Electric Cars Are Turning a Miserable Bill
- Residual Value Struggles – Battery‑electric vehicles (BEVs) still lag behind combustion cars in resale price. On top of that, manufacturers slashed prices in recent months, so BEVs are losing even more value.
- Higher Up‑Front Cost – Even though BEVs have higher list prices, they’re a sweet deal when you’re buying. But maintenance and repairs burn cash at a greater rate.
- Interest Rate Crossfire – Coupled with the global interest surge, owning an expanding electric fleet has become a costly affair. Sixt’s share of pure electric vehicles grew to nearly 6 % of its fleet in Q3 2023.
Demand Gap: Less Electromobility, More Combustion
Zooming out, the overall appetite for e‑cars is still a long way behind combustion engines. In Germany, new BEV registrations plunged by 29 % in September 2023 compared to last year. That dip suggests the policy push to boost e‑vehicle numbers hasn’t yet become a reality.
Consequently, the abrupt withdrawal of the BAFA purchase premium for commercial clients in September probably didn’t spark the boost either.
Sixt’s CFO on the Numbers
Prof. Dr. Kai Andrejewski, CFO of Sixt SE, summed it up: “We’re thrilled with last quarter’s revenue and overall performance, especially amid such a hawkish, politically charged market. The whole fiscal year still looks bright. Despite hefty growth investments and rising rates, the higher cost base for electric mobility is a key factor in our earnings.”
Increase in internal efficiency and new borrower´s note loans
SIXT’s Slick Moves Shave Costs and Power Growth
From the latest earnings blurb, SIXT’s playing the long‑term game, keeping the lights on while pushing toward bigger horizons.
Delayed and Dampened Operating Costs
While the company’s revenue shot up, it kept other operating expenses heel‑high in check— only a 1.7 % rise in Q3 of 2023 (we’re not counting the usual currency wobble or marketing outlays).
- ↓Operating expense growth
- Revenue climbed
- Result: Cost efficiency wins
New Debt, Bigger Future
In September and October, SIXT tapped into the capital markets, issuing €314 million in borrower‑note loans under pretty sweet terms. That money is earmarked for two things:
- Fueling expansion
- Paying off 2024 liabilities early—they’ve already shaved off a hefty double‑digit‑million‑euro chunk.
They’re sticking to a conservative, risk‑averse financing strategy while beefing up their resilience, even in a tight, cap‑tight market.
Leadership Says
Prof. Dr. Kai Andrejewski puts it on point:
“Thanks to steady financing and a flexible cost structure, we’re free to rip quick into changing market conditions. In 2024, we’ll keep fleet planning strict—tight fleets mean high utilization and steady high prices.”
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