Growth continues in Q2
Daimler Financial Services’ portfolio included more than five million vehicles at the end of June; this is equivalent to a contract volume of €146.7 billion and thus growth of 5% compared with the end of 2017. In the insurance business, Daimler Financial Services brokered 579,000 contracts in the second quarter of this year (+11%).
Bodo Uebber, Member of the Board of Management of Daimler AG for Finance & Controlling and Daimler Financial Services: “Our earnings and the good liquidity and financial situation enable us to continue investing in the future and in new technologies. In addition, we have made optimum use of the favorable conditions in a volatile environment and have created a long-term liquidity buffer with the early renewal of the existing credit line at attractive conditions.”
Transition into a mobility provider
Daimler Financial Services’ mobility portfolio with car2go, moovel and the ride-hailing group that includes mytaxi / Intelligent Apps*, beat, Clever Taxi and Chauffeur Privé had approximately 23.5 million customers at June 30, 2018. The number of transactions in the second quarter totaled 42.4 million in more than 110 cities worldwide. That represents growth of 61% compared with the prior-year period. Daimler is pushing forward systematically with its transition into a mobility provider will strengthen its leading position for mobility services in Europe and develop it further worldwide through its planned cooperation with BMW.
Agreement in the Toll Collect arbitration proceedings
In the second quarter of 2018, the division achieved EBIT of €66 million, which is significantly below its earnings of €522 million in the prior-year period. The determining factor was the agreement reached to conclude the Toll Collect arbitration proceedings with the Federal Republic of Germany. This had a negative impact on income from the equity-method investment in Toll Collect of €418 million. Furthermore, the higher level of interest rates and exchange-rate effects had a negative effect on EBIT. Increasing contract volume had a positive impact on EBIT.
The reconciliation of the divisions’ EBIT to Group EBIT comprises gains at the corporate level and the effects on earnings of eliminating intra-group transactions between the divisions. Items at the corporate level resulted in expenses of €95 million in the second quarter of 2018 (Q2 2017: €122 million). The elimination of intra-group transactions resulted in income of €4 million in the second quarter of 2018 (Q2 2017: €7 million).
Daimler Financial Services anticipates further growth in contract volume in the year 2018. New business is expected to be in the magnitude of the previous year. In China, new business continues to grow very dynamically. The division will utilize new market potential through new and digital possibilities for customer contacts – in particular by systematically further developing its online sales channels.
*: Ride-Hailing-Group: mytaxi and Intelligent Apps GmbH with beat, Clever Taxi and Chauffeur Privé.