Deutsche Euroshop Newsroom

Corporate News

14.11.2006

Deutsche EuroShop: Solid development in the first nine months 2006

 
  • Revenue +29%
  • EBIT +34%
  • Profit +102%
  • Earnings per share Euro 1.76

Hamburg, 14 November 2006 – In the first nine months of financial year 2006 Deutsche EuroShop realised with a revenue increased from Euro 53.3 million to Euro 68.7 million an EBIT of Euro 57.2 million (Euro 42.8 million). The consolidated profit attributable to Group shareholders increased by 121% to Euro 30.2 million compared to the period of previous year (Euro 13.7 million).

 

Revenue climbs 29%

Revenue rose by 29% in the first nine months of financial year 2006, from Euro 53.3 million to Euro 68.7 million. This increase is attributable to the inclusion of the new investments and the opening of City Arkaden Klagenfurt in March 2006. The comparable rental income from the portfolio properties rose by around 1.9%.

 

One-time effect increases other operating income

Since other operating income includes proceeds of Euro 0.8 million from the sale of the French shopping center, this item improved by Euro 0.2 million to Euro 1.5 million. Adjusted for this effect, other operating income fell short of the prior-year figure by Euro 0.6 million.

 

Other operating expenses up slightly

Other operating expenses (incl. property operating and management costs) amounted to Euro 13.1 million; this is compared to the prior-year period (Euro 11.8 million) a slight increase and in particular caused by the new investments.

 

34% EBIT increase

Earnings before interest and taxes (EBIT) rose by Euro 14.4 million, from Euro 42.8 million to Euro 57.2 million (+34%).

 

Net finance costs in line with expectations

At Euro 26.9 million, net finance costs were Euro 6.9 million down on the previous year. This is primarily the result of the first-time inclusion of the Main-Taunus-Zentrum and the Rathaus-Center Dessau, as well as of interest expenses for City Arkaden Klagenfurt, opened in March.

 

Measurement gains/losses affected by various factors

As previously reported, measurement gains/losses were positively influenced by consolidation effects in the first quarter and by the reclassification of unrealised currency effects in the second quarter (exchange rate gain in the first nine months of 2006: Euro 1.6 million). This item was impacted in the third quarter by costs associated with the acquisition of Galeria Baltycka. In total, measurement gains and losses amounted to Euro 5.1 million in the first nine months of 2006.

 

Adjusted EBT up 33%

At Euro 35.5 million, profit from ordinary activities (EBT) substantially exceeded the prior-year figure (Euro 21.4 million). Adjusted for measurement gains and losses, EBT rose by 33% from Euro 22.8 million to Euro 30.3 million.

 

Consolidated net profit for the period significantly improved

Consolidated net profit for the period amounted to Euro 32.4 million, double the prior-year figure (Euro 15.7 million, +106%). Of this, Euro 30.2 million was attributable to Group shareholders, as against Euro 13.7 million in the first nine months of 2005. Earnings per share rose by 102% from Euro 0.87 to Euro 1.76. Of this amount, Euro 1.57 resulted from operating profit and Euro 0.19 from measurement gains and losses.

 

Outlook

The shopping center portfolio properties Galeria Baltycka in Gdansk and Stadt-Galerie Hameln are currently under construction. Work is progressing swiftly and preletting rates are now at over 95% and 70% respectively. Due to the positive demand for retail space in these properties, the Management expects both properties – like all new development projects to date – to be fully occupied in time for their planned openings in autumn 2007 (Gdansk) and spring 2008 (Hameln).

 

With respect to acquisitions, there are opportunities both in Germany and abroad. Competition for attractive shopping centers remains extremely fierce. The Company has already met its investment targets for 2006 with the purchase of Galeria Baltycka in Gdansk (approximately Euro 123 million). However, the Executive Board can imagine making a further acquisition with a volume of around Euro 100 million by the end of 2006.

 

Based on the results of the first nine months, the Management reiterates the forecast for full-year 2006: revenue should increase to between Euro 91 million and Euro 94 million (2005: Euro 72.1 million). Currency-adjusted earnings before interest and taxes (EBIT) are projected to increase to between Euro 72 million and Euro 75 million (2005: Euro 57.5 million). The profit from ordinary activities (EBT) excluding measurement gains and losses is anticipated to increase from Euro 32.1 million in 2005 to between Euro 37 million and Euro 40 million in 2006.

 

As things stand today, the Executive Board and the Supervisory Board will propose a dividend of Euro 2.00 per share for financial year 2006 to the Annual General Meeting.

 

Webcast of the conference call

Deutsche EuroShop will webcast its English conference call on Tuesday, 14 November 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 Sep. 2006

01 Jan. – 30 Sep. 2005

Change

Revenue

68.7

53.3

29%

EBIT

57.2

42.8

34%

Net finance costs

-26.9

-20.0

-34%

EBT

35.5

21.4

66%

Consolidated profit

attributable to Group shareholders

 

30.2

 

13.7

 

121%

EPS (Euro)

1.76

0.87

102%

 

 

 

 

 

30 Sep. 2006

31 Dec. 2005

Change

Equity

787.7

787.4

0%

Liabilities

811.0

677.1

20%

Total assets

1,679.2

1,543.6

9%

Equity ratio (%)

46.9

51.0

 

Gearing (%)

113

96

 

Cash and cash equivalents

102.0

197.2

-48%

back to list

Image Archive

Video Archive


                       subscribe to RSS-Feed

Multimedia

show all

our Videos on


videothumbnail
Deutsche EuroShop H1 2017 Interim Report Conference Call Slide Presentation
0:36:01
videothumbnail
Deutsche EuroShop EPK (Electronic Press Kit)
0:08:46

 

Google+ Add this