27 September 2006 14:44
Price Sensitive economic-financial results

The Board of Directors approves the First Half Report as of 30 June 2006

  • Value of production at EUR 28.75 million up 10.21% YoY
  • Gross Operating Margin (EBITDA) at EUR 18.30 million up 10.28% YoY
  • Operating Result (EBIT) EUR 57.72 million up 88.50% vs 1H05
  • Net profit at EUR 32.81 million up 84.69% YoY
  • IGD signed the closing fot the acquisition of Centro SARCA Shopping Mall in Sesto San Giovanni (Milan).

The Board of Directors of IGD S.p.A. – company listed in the STAR division of the Italian Stock Exchange, active in the retail real estate sector – approved first half 2006 figures, which confirmed the positive trend of growth already anticipate in the past quarters.

IGD in first half 2006 posted a value of production amounting to EUR 28.75 million, up 10.21% compared to EUR 26.08 million registered in the first half 2005. The increase is due to the combined effect of increased revenue from property management and the increase generated by the acquisition of an hypermarket and medium size surfaces in Rimini and the shopping centre “Darsena City” in Ferrara.

The gross operating result (EBITDA) stood at EUR 18.30 million, up 10.28% compared to EUR 16.59 million as at 30 June 2005. Said increase is due to the combined effect of increased revenue and decreased cost incidence. First half 2006 EBITDA margin was 63.64% on value of production, substantially stable on first half 2005.

The operating result (EBIT) amounted to EUR 57.72 million, showing a strong performance (up 98.67%) vs EUR 30.62 million registered as at 30 June 2005.

The increase in profitability mainly due to the outstanding increase in fair vale of the real estate portfolio thanks the rise in value of IDG’s property in the first half of 2006.

Net profit in first half 2006 stood at EUR 32.81 million, up 84.69% compared to EUR 17.76 million in first half 2005.

“The meaningful performance posted by Net result in the first half 2006 – said Filippo Carbonari, CEO of IGD – confirms IGD’s correct strategic choices. Such result is also due to our main strength which is aimed at boosting the value of our assets thought the property management”.

Net financial was EUR 218.7 million compared to EUR 123.6 million as of 31 March 2006. The increase is attributable to the acquisition of the Ferrara centre and the settlement of in lieu tax following the enactment of the 2005 Finance Act.

Monday 25 September, IGD signed the closing for the acquisition of the “Galleria del Centro Commerciale CENTROSARCA” in Sesto San Giovanni (preliminary agreement signed on July 2006) following the approval by Antitrust Authorities. Such investment, for an overall expenditure of EUR 129.18 million did not factor into the business plan presented to the financial community last October.