AMSTERDAM, the Netherlands, 14 August 2019 – LeasePlan Corporation N.V. (LeasePlan; the “Company”), one of the world’s leading Car-as-a-Service (“CaaS”) companies and a leading pan-European used-car market place, today reports its Q2 results.
Q2 2019 financial highlights
Net result of EUR 32 million and underlying net result of EUR 141 million, both down in the quarter
Underlying performance impacted by: Quarterly cost increases of EUR 14 million largely related to increased investment in CarNext.com
Strategic decision to stop development of the Core Leasing System in favor of a Next Generation Digital Architecture, leading to an impairment of EUR 92 million
Solid CaaS trading performance: Serviced fleet up 2.8%, Underlying lease and additional services gross profit up 0.9%
PLDV and End of Contract Fees gross profit down EUR 13 million to EUR 24 million
CarNext.com B2C volumes up 35% to 15,700 vehicles, and 23% runrate B2C sales penetration for the quarter. The number of Delivery Stores grew to 37 in 22 countries
Inaugural AT1 transaction delivered EUR 500 million in regulatory capital for the Group
Tex Gunning, CEO of LeasePlan:
“This quarter saw solid growth in our Car-as-a-Service and CarNext.com businesses. Net result was impacted by the investment decisions we took in relation to our long-term growth initiatives in CarNext.com and the strategic restructuring of our IT architecture.
The Car-as-a-Service market is expected to grow substantially over the next 5-10 years driven by the mega trend from “car ownership to mobility as a service”. In order to be able to deliver these new mobility services to millions of customers, we need a business model that is entirely digital, meaning delivering digital services at digital cost levels and leveraging our rich data sources through AI technologies. This requires a digital architecture that is flexible, scalable and adaptable to new emerging digital platforms and digital technologies. Traditional process-oriented IT architectures are not fit for purpose in the digital world and therefore we have taken the strategic decision to stop the development of our Core Leasing System in favour of a more dynamic and modular Next Generation Digital Architecture. While leading to an impairment charge this quarter, this architecture will enable us in the future to offer a new range of smart fleet products and services to millions of customers with significant expected efficiency benefits.
We also continued to increase our investments in CarNext.com as it ramps up its marketing activities in support of the increasing volume of vehicles being sold through its marketplace. As such, we are particularly pleased to see CarNext.com continue to grow strongly and successfully increase the volume of third-party vehicles sold through its digital marketplace.”
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