Deutsche Euroshop Newsroom

Corporate News

15.05.2006

Deutsche EuroShop: Strong First Quarter

  • Revenue +31%
  • EBIT +27%
  • Profit +158%
  • Earnings per share Euro 0.67

In the first three months of financial year 2006 Deutsche EuroShop (ISIN: DE0007480204) realised a revenue of Euro 22.7 million (prior-year period: Euro 17.4 million) and an EBIT of Euro 17.3 million (Euro 13.6 million). The consolidated profit attributable to Group shareholders increased by 158% to Euro 11.5 million compared to the first three months of financial year 2005 (Euro 4.4 million).

 

Revenue up 31%

Revenue rose by 31% from Euro 17.4 million to Euro 22.7 million in the first three months of financial year 2006. This increase is mainly attributable to the acquisition of the Rathaus-Center in Dessau and the first-time inclusion of the Main Taunus-Zentrum. The like-for-like rental income rose by around 1%.

 

Other operating expenses up

The increase in other operating expenses to Euro 2.4 million is due to unrealised currency losses of Euro 1.7 million incurred in the quarter under review at the Hungarian investment.

 

EBIT up 27%

Earnings before interest and taxes (EBIT) rose by Euro 3.7 million, from Euro 13.6 million to Euro 17.3 million (+27%). In currency-adjusted terms, earnings were up Euro 5.3 million (+39%).

 

Net finance costs deteriorate in line with expectations

Net finance costs deteriorated by Euro 2.0 million to Euro -8.7 million. This was due on the one hand to higher interest expenses for the newly opened centers and expenses relating to the companies consolidated for the first time. On the other, investment income was lower, as the proportionate inclusion of the Main-Taunus-Zentrum from 2006 onwards meant that the company's earnings were included in consolidated net profit and as a result, the distributions were no longer recognized as investment income.

 

Measurement gains and losses with positive one-time effects

Measurement gains and losses in the first three quarters include as a rule the investment expenses incurred in relation to operational shopping centers during the period under review. Remeasurement is performed annually when the annual financial statements are prepared. However, in Q1 2006, the measurement gains and losses item was positively impacted by the initial consolidation of the Rathaus-Center Dessau and the Main-Taunus-Zentrum in conjunction with the reduced minority interests in the Rhein-Neckar-Zentrum and Shopping Etrembières: the net measurement gain amounted to Euro 8.0 million.

 

Consolidated net profit for the period significantly improved

Unadjusted earnings before taxes (EBT) greatly exceeded the prior-year figure at Euro 16.6 million (+Euro 9.8 million). Adjusted for measurement gains and losses and currency effects, EBT rose by 46% to Euro 10.4 million.

 

Consolidated net profit for the period amounted to Euro 12.2 million. Of this, Euro 11.5 million was accounted for by Group shareholders, as against Euro 4.4 million in the prior-year period. Earnings per share rose accordingly from Euro 0.28 to Euro 0.67 (+139%). Of this amount, Euro 0.33 resulted from operating profit and Euro 0.34 from measurement gains and losses.

 

Outlook

Following the successful opening of City Arkaden in Klagenfurt, only the Stadt-Galerie in Hamelin remains under construction. The ground-breaking ceremony was held on 12 April 2006, and the opening is planned for spring 2008. Today, 57% of space is already leased long-term, around two years prior to the scheduled opening.

 

Following the sale of the French shopping center, Deutsche EuroShop’s portfolio now comprises 15 shopping centers. The management is continuing its intensive search for attractive acquisition opportunities. In view of the significant excess demand for retail real estate in Germany and in Deutsche EuroShop’s other target markets in the rest of Europe, this requires paying close attention. The Executive Board is currently examining various projects that are still in a very early review phase. Overall, the Executive Board believes that the planned investment volume of Euro 100-150 million in 2006 is achievable.

 

The management expects to achieve the projected revenue and earnings figures in 2006: revenue of Euro 91-94 million, EBIT of Euro 72-75 million and currency-adjusted EBT excluding measurement gains and losses of Euro 37-40 million.

 

In addition, the Executive Board is confident that Deutsche EuroShop will again be able to distribute a tax-free dividend of Euro 2.00 per share for financial year 2006.

 

Webcast of the conference call

Deutsche EuroShop will webcast its English conference call on Monday, 15 May 2006, at 10:00 a.m. CET live on the Internet. The webcast can be accessed at the Company's website at http://www.deutsche-euroshop.com/ir.

 

At the same internet address the complete Interim Report is available as PDF file and as interactive online version.

 

Deutsche EuroShop’s key data (IFRS)

 

Euro million

01 Jan. - 31 Mar.
2006

01 Jan. - 31 Mar.
2005

Change

Revenue

22.7

17.4

31%

EBIT

17.3

13.6

27%

Net finance costs

-8.7

-6.6

-30%

EBT

16.6

6.9

143%

Consolidated profit

attributable to Group shareholders

 

11.5

 

4.4

 

158%

EPS (Euro)

0.67

0.28

139%

 

 

 

 

 

31 Mar. 2006 

31 Dec. 2005 

Change

Equity

791.3

787.4

0%

Liabilities

749.3

677.1

11%

Total assets

1,622.0

1,543.6

5%

Equity ratio (%)

48.8

51.0

 

Gearing (%)

105

96

 

Cash and cash equivalents

98.8

197.2

-50%

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Deutsche EuroShop H1 2017 Interim Report Conference Call Slide Presentation
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