IPO costs deepen Europcar’s losses

Costs associated with Europcar’s IPO totalling €92 million contributed to deepening half-year losses for the car rental company.

A loss of €156.8 million was reported for the six months compared with €82 million in the same period in 2014.

Europcar also suffered a net negative impact from “certain [unspecified] proceedings” of €27 million and reorganisation charges of €20 million.

Adjusted corporate earnings [EBTIDA] improved by more than 39% to €60.2 million.

Rental days increased by 9.6% to 26 million due to improved demand from both business and leisure sectors. This helped push up revenues by 10.5% to €961 million.

Chief executive, Philippe Germond, said: “The results of the first half show significant revenue growth and a continuing improvement of our profitability.

“Our transformation plan, Fast Lane, which is half way, continues to be deployed and to bear fruits across the group, notably in supporting top line growth and offer differentiation.

“This first half is an important step for us, one month after the success of our IPO which has confirmed the strength of our leading position in Europe and enables us to accelerate our strategy and deliver an enhanced customer experience.”

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