Deutsche Euroshop Newsroom

Corporate News

11.08.2006

Deutsche EuroShop: Earnings jump in H1 2006

  • Revenue +30%
  • EBIT +38%
  • Profit +166%
  • Earnings per share Euro 1.39 
  • New shopping center in Poland 

In the first half of financial year 2006 Deutsche EuroShop realised a revenue of Euro 45.9 million (prior-year period: Euro 35.2 million) and an EBIT of Euro 39.0 million (Euro 28.2 million). The consolidated profit attributable to Group shareholders increased by 166% to Euro 23.9 million compared to the first half of financial year 2005 (Euro 9.0 million).

 

Revenue up 30%

Revenue rose by 30% from €35.2 million to €45.9 million in the first six months of financial year 2006. This increase is amongst others attributable to City Arkaden Klagenfurt, which contributed to revenue for a complete quarter for the first time. The acquisition of the Rathaus-Center in Dessau and the first-time inclusion of the Main-Taunus-Zentrum also had a positive effect on revenue. Rental income from the portfolio properties rose by approximately 1%.

 

One-time effect lifts other operating income

Other operating income rose by €0.6 million to €1.5 million, as this item includes the gain from the sale of the French shopping center (€0.8 million).

 

Expenses slightly up

Other operating expenses (incl. property operating and administrative costs) amounted to €8.3 million. This does not represent a significant change on the prior-year period (€7.8 million).

 

EBIT up 38%

Earnings before interest and taxes (EBIT) rose by 38%, from €28.2 million to €39.0 million.

 

Net finance costs in line with forecasts

Net finance costs deteriorated by €4.6 million to €-17.7 million. This was primarily due to higher interest expenses for the newly opened centers.

 

Currency effects now included in measurement gains and losses

For the first time, the market value of the Αrkαd Pιcs property was no longer reported at the Group level in the second quarter, but rather in forints in the Hungarian annual financial statements. The translation into forints resulted in an unrealized currency gain. The unrealized currency effects relating to non-current liabilities reported in the Hungarian annual financial statements, which had previously been reported under other operating expenses and other operating income, were reclassified as measurement gains and losses. The figures for the first quarter of 2006 and the first half of 2005 were restated retroactively. In total, measurement gains and losses includes a €1.1 million currency gain in the first half of 2006.

 

EBT significantly improved

At €29.6 million, profit from ordinary activities (EBT) substantially exceeded the prior-year figure (€14.1 million). Adjusted for measurement gains and losses, EBT rose by 41% to €21.4 million.

 

Consolidated net profit more than doubled

Consolidated net profit for the period amounted to €25.4 million (2005: €10.4 million). Of this, €23.9 million was attributable to Group shareholders, as against €9.0 million in the prior-year period. Earnings per share rose accordingly from €0.58 to €1.39 (+140%). Of this amount, €1.03 resulted from operating profit and €0.36 from measurement gains and losses.

 

Shopping center in Gdansk purchased

Deutsche EuroShop has acquired a 74% interest in the Galeria Baltycka in Gdansk, Poland. The proportional investment volume amounts to around EUR 123 million, with an initial yield of 6.8%. Deutsche EuroShop’s portfolio now consists of 16 shopping centers. The goal for 2006, acquisitions with a volume of €100 – €150 million, is now already reached.

 

Outlook

The Executive Board maintains the revenue and earnings targets for 2006 and expects revenue of €91 – €94 million (2005: €72.1 million) and EBIT of €72 – €75 million (€57.5 million). The management expects to increase EBT excluding measurement gains and losses from €32.1 million to €37 – 40 million.

 

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

 

Webcast of the conference call

Deutsche EuroShop will webcast its English conference call on Friday, 11 August 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. – 30 Jun. 2006

01 Jan. – 30 Jun. 2005

Change

Revenue

45.9

35.2

30%

EBIT

39.0

28.2

38%

Net finance costs

-17.7

-13.1

-35%

EBT

29.6

14.1

110%

Consolidated profit

attributable to Group shareholders

23.9

9.0

166%

EPS (Euro)

1.39

0.58

140%

 

 

 

 

 

30 Jun. 2006

31 Dec. 2005

Change

Equity

766.4

787.4

-3%

Liabilities

737.3

677.1

9%

Total assets

1,574.4

1,543.6

2%

Equity ratio (%)

48.7

51.0

 

Gearing (%)

105

96

 

Cash and cash equivalents

81.0

197.2

-59%

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Deutsche EuroShop H1 2017 Interim Report Conference Call Slide Presentation
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