Avis Budget Group, Inc. has recently released its 10-Q report, providing an in-depth look at its financial performance and operations. The company operates car and truck rentals, car sharing, and ancillary products and services across the Americas, Europe, the Middle East and Africa, Asia, and Australasia. It operates under well-recognized brands such as Avis, Budget, and Zipcar, along with several other brands in various markets.
In the second quarter of 2024, Avis Budget Group generated revenues of $3.0 billion, with a net income of $15 million and Adjusted EBITDA of $214 million. These results were primarily driven by increased volume, offset by decreased revenue per day, and increased fleet and interest costs.
The company categorizes its operations into two reportable business segments: Americas and International. The Americas segment reported revenues of $2.36 billion, with an Adjusted EBITDA of $186 million, while the International segment reported revenues of $687 million, with an Adjusted EBITDA of $48 million.
During the three months ended June 30, 2024, Avis Budget Group's consolidated revenues decreased by $75 million, or 2%, primarily due to a 4% decrease in revenue per day, excluding exchange rate effects, and a $10 million negative impact from currency exchange rate movements, partially offset by a 2% increase in volume.
For the six months ended June 30, 2024, the company's revenues totaled $5.6 billion, representing a decrease of $81 million year-over-year, primarily due to decreased revenue per day. The net loss was $100 million, a decrease of $847 million year-over-year, primarily due to increased fleet and interest costs. The Adjusted EBITDA for the same period was $226 million, representing a decrease of $1.0 billion year-over-year.
Avis Budget Group continues to focus on customer experience and costs to strengthen its company, maximize profitability, and deliver stakeholder value. However, the company remains susceptible to industry-specific and global macroeconomic factors, including interest rates, inflationary impact, cost of new vehicles, used car values, and potential economic downturns due to ongoing military conflicts in the Middle East and Eastern Europe.
The company's financial performance and operational metrics are crucial for investors and stakeholders to assess its results of operations and financial condition. Avis Budget Group's presentation of Adjusted EBITDA, a non-GAAP measure, allows for a comprehensive evaluation of its operating businesses and comparison of results from period to period. Following these announcements, the company's shares moved 1.2%, and are now trading at a price of $84.96. For more information, read the company's full 10-Q submission here.
