Q2 Dollar Thrifty Automotive results show pressure on day rental rates
For the second quarter ended 30 June 2011, the rental firm reported net income of $42.5 million compared to $42.3 million for the same period in 2010. However, total revenue stayed broadly the same at $395.1m compared to $396.2m for Q2 last year.
Vehicle rental revenue for the quarter was unchanged with prior year as a 3.0% increase in rental days was offset by a 3.4% decrease in revenue per day.
Looking ahead, the company noted that if the rate environment continues to remain under pressure during the second half of 2011, it would expect that rate environment, combined with single digit rental day growth, to result in full year 2011 revenues in line with 2010.
It added that it expects the used car market to be slightly less robust in 2012 than 2011, although better than its previously stated outlook for 2012 and beyond.