- New business up by 2%
- Contract volume grows to €147 billion
- Toll Collect: agreement reached in arbitration proceedings
- EBIT significantly below prior-year level at €66 million due to Toll Collect agreement (Q2 2017: €522 million)
New business up by 2% worldwide
Daimler Financial Services further increased its new business in the second quarter of 2018: Worldwide, 501,000 new leasing and financing contracts were concluded with a total volume of €18.3 billion, which is 2% more than in the prior-year period. 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 million and thus growth of 5% compared with the end of 2017. EBIT amounted to €66 million (Q2 2017: €522 million). The main reason for the decrease in earnings was the agreement reached on concluding the Toll Collect arbitration proceedings, which had a negative impact on earnings of €418 million.
Slight growth in the Europe region
In the whole of Europe, 251,000 new leasing and financing contracts were signed in the second quarter (+1%). New business increased by 3% to €8.2 billion. Contract volume in Europe grew compared with the end of 2017 by 4% to €62.0 billion.
The Americas: new business at prior-year level
In the Americas region, leasing and financing contracts with a total value of €5.5 billion were concluded in the second quarter of 2018 (Q2 2017: €5.6 billion). Contract volume in the Americas region of €52.2 billion at the end of June was slightly higher than at year-end 2017 (+3%).
Strong growth in Africa & Asia-Pacific and China
New business in the Africa & Asia-Pacific region (excluding China) was nearly unchanged at €2.1 billion in the second quarter of 2018. Contract volume in the region amounted to €17.8 billion at the end of June (+3%). New business continued its strong growth in China. In the second quarter, 79,000 new leasing and financing contracts were concluded worth €2.4 billion (+10%). Contract volume amounted to €14.6 billion at the end of June, which is 19% higher than at the end of 2017.
Further growth in the insurance business
In the insurance business, Daimler Financial Services brokered 579,000 contracts in the second quarter of this year (+11%). The development was especially positive in China (+30%), Russia (+29%) and Germany (+3%).
Toll Collect: agreement reached in arbitration proceedings
In May 2018, Daimler Financial Services reached an agreement with Deutsche Telekom AG (consortium partner) and the German Federal Government on concluding the arbitration proceedings relating to Toll Collect. We refer to Note 17 of the Notes to the Interim Consolidated Financial Statements for further details of the settlement agreement.
Daimler Financial Services expands its mobility portfolio
Daimler Mobility Services GmbH, a subsidiary of Daimler Financial Services, has acquired an interest in Taxify, a ride-hailing company, by way of a capital contribution in May. The company was founded in Tallinn, Estonia, in 2013 and now offers ridehailing services in regions including Africa, Europe and Asia, by which customers can order and pay for a taxi or private driver using an app.
Daimler Financial Services’ mobility portfolio with car2go, moovel and the ride-hailing group that includes mytaxi, 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.