LeasePlan's Q2 report: 10% net growth
With underlying net result up 10.2% to €161 million and its serviced fleet up 6.7% to 1.8 million vehicles, LeasePlan had plenty of reason to celebrate its Q2 (half-year) 2018 report. The company, repositioning itself as a global leader in 'Car-as-a-Service' (CaaS), also reported 300% growth for its used-car business.
"Our results demonstrate the strength of LeasePlan's strategy and positive impact of our Power of One LeasePlan operational excellence programme”, said LeasePlan CEO Tex Gunning. “We have more cars on the road than ever before, our underlying net result increased and we delivered a strong improvement in our return on equity”.
Mr Gunning lauded 'The Power of One LeasePlan', the company's operational excellence programme, for delivering incremental savings of around €35 million in the first half of 2018 – increasing the cumulative total to €165 million over the past 18 months.
Growth in the corporate and SME segments powered further growth in LeasePlan's core leasing – pardon, CaaS – business. The company also announced an operational lease partnership, becoming the preferred partner of the dealer network of Fiat Chrysler Automobiles in several European markets. It's the first partnership of its kind for LeasePlan with a major European OEM.
Over the past 12 months, LeasePlan generated €375 million in revenues with its disruptive CarNext.com platform, its used-car business that allows both corporates and private consumers to buy, lease or subscribe to used cars (i.e. UCaaS).
The B2C platform is now present in 15 European countries. B2C sales in Q2 accelerated by over 70% year on year to 11,600 vehicles. Used-car leasing, which has been successfully introduced in 7 additional countries, grew by 300% to 2,400 newly contracted vehicles in Q2.
Further relevant developments include:
- Digital LeasePlan: delivering and leveraging digital services at digital cost levels, helping to achieve LeasePlan's target of delivering 'any car, anytime, anywhere'.
- Sustainability: LeasePlan is targeting net zero emissions from its total fleet by 2030. In July, it partnered with Allego to provide its EV customers with access to personal charge points at home and at work; LeasePlan also co-founded the Zero Emission Vehicle Challenge. In selected countries, LeasePlan has seen 77% growth in registrations of battery Evs in its fleet.
- IPO: LeasePlan continues to explore various strategic alternatives, including an Initial Public Offering.
“Looking ahead, our strategy to lead the megatrend from ownership to subscription - ultimately providing any car, anytime, anywhere - ensures we will continue to deliver significant value creation", Mr Gunning concluded.