CAR Inc. announced its unaudited consolidated results for the nine months ended September 30, 2017 on November 21.
Financial Highlights:
Car rental revenue was RMB 2,838 million, an increase of 31% year-over-year, driven by 65% volume growth despite significant price reductions.
Fleet rental revenue was RMB 983 million, a decrease of 40% year-over-year.
Net profit was RMB 662 million, compared with RMB 1,388 million in the same period of 2016. The decrease was mainly due to the significant fair value gain from investment in UCAR in the same period of 2016.
Adjusted EBITDA was RMB 2,309 million, compared with RMB 2,380 million in the same period of 2016.
Adjusted net profit was RMB 539 million, compared with RMB 703 million in the same period of 2016.
Operational Highlights:
For the car rental business, rental days grew by 65% year-over-year. Number of registered members increased by 56% year-over-year to over 19 million as at 30 September 2017.
The rental revenue per car rental vehicle (RevPAC) decreased by 6% to RMB159. Fleet utilization rate increased to 67.7%, representing an increase of 11 percentage points year-over-year. Average daily rental rate (ADRR) decreased by 21%. Car rental adjusted EBITDA and net profit margin increased 5 percentage points and 3 percentage points respectively due to a lower RevPAC breakeven point, driven by significant scale benefits.
As at 30 September 2017, total fleet was 103,455 vehicles. Car rental fleet increased by 36% year-over-year to 83,576 vehicles. During the third quarter of 2017, average daily UCAR Ride-hailing fleet was approximately 15,000.
As at 30 September 2017, the Company expanded its city coverage to 116 cities, with 872 directly-operated physical locations. As at 30 September 2017, the franchisee network comprised 239 service locations in 189 cities. Most of the franchise agreements will start to expire in early 2018.
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