Avis Budget Group revenue increased 7 percent year over year
to $2 billion in the fourth quarter, although its commercial volume and pricing
was flat.
Rental days in the Americas rose 3 percent year over year
during the quarter, and time and mileage revenue per day increased 3 percent to
$39.32. President and CEO Larry De Shon said large commercial accounts remain
"very competitive" for car rental suppliers and while Avis has
maintained its share of those accounts, it has focused on winning smaller
accounts, which pay higher rates.
"We've been working hard to start targeting segments of
the business that produce a higher rate per day," he said. "It's a
longer haul to do that, but if we stay focused as we were all last year, we'll
continue to drive more volume at a higher rate than what you're going to get
with the large commercial accounts."
Outside the Americas, rental days increased 15 percent and
time and mileage revenue per day rose 7 percent year over year to $32.13.
Commercial volume outside the Americas rose 10 percent, led by strong growth in
Australia, Germany and Italy, CFO Martyn Smith said.
The group reported a net income of $220 million
for the quarter, compared with a loss of $31 million in the fourth quarter of
2016. The 2017 results include a $213 million benefit from U.S. tax legislation
related to a revaluation of net deferred tax liabilities. For the full year of
2017, Avis Budget reported a net income of $361 million, up from $163 million
in 2016.
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