LeasePlan ended last year with a powerful quarterly financial report. Q4 of 2018 saw a net result of €71 million, a 12.9% increase from Q4 2017.
However, full-year results were mixed, with the net result at €424 million (-9.2%). LeasePlan attributes the downturn in earnings to its performance in Germany and Turkey. Impairments were taken to recognize losses in Germany related to a number of loss-making contracts (€20 million net of taxes) and in Turkey related to the depreciation of the Turkish lira and local used-car prices stemming from the recent period of economic and political volatility (€89 million net of taxes).
But LeasePlan points to a healthier underlying net result of €576 (+8.4%) – thanks to CaaS and CarNext.com. Return on equity increased from 16.7% in 2017 to 17.3% last year.
LeasePlan’s serviced fleet, operating in more than 30 countries, increased from 1.75 million vehicles at the end of 2017 to 1.82 million at the end of last year (+4.4%). That increase was driven mainly by strong demand from both the corporate and SME customer segments for CaaS. Lease and additional services (CaaS) realised an underlying gross profit of €365 million (+3.5%) in Q4. For the entire year, that figure stood at €1.49 billion (+6.6%).
Launched just a year ago, CarNext.com, LeasePlan’s online platform for used-car sales, realised a B2C volume of 13,775 vehicles in Q4 (+55%) and of around 50,000 vehicles (+65%) for the full year. It is now available for B2B and B2C customers 22 countries, supported by a network of 32 delivery stores.
Read more here
Join us in Bangkok the 19th to the 21st of March for the Property Portal Watch Conference.