German carmaker, Porsche eyes new revenue streams despite record year

Porsche CEO Blume poses prior to company's annual news conference in Stuttgart

German carmaker Porsche plans to find fresh revenue streams outside its lucrative core business, Chief Financial Officer Lutz Meschke said on Friday.

“We have to and will create growth potential next to our actual vehicle business,” Meschke said in the southern German city of Stuttgart, where the luxury carmaker is headquartered.

“In the mid-term we wish to generate double-figure percentage growth in sales with digital services,” he said.

Porsche is sticking to its yield target of at least 15 per cent, even if digitalization, electrification and networking will incur costs.

Porsche had the most financially successful year in its 87-year history in 2017, achieving sales of 23.5 billion euros (29 billion dollars), an increase of 5 per cent on the previous year.

Operating profit of 4.1 billion euros in 2017 means that the yield increased to 17.6 per cent. Net profits were 3.1 billion euros, an increase of half a billion euros on 2016.

Porsche has set a target of achieving the same sales in 2018 as in 2017. Meschke said revenue would begin to increase again in 2019 when Porsche introduces its new electric-powered Mission E.

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