14 May 2008 13:07
Price Sensitive economic-financial results

The Board of Directors approves the Interim Management Statement at 31 March 2008

  • Total revenues and operating income: €21.02 million (+14.62% vs. 2007)
  • EBITDA: €12.26 million (+2.57% vs. 2007)
  • EBIT: €2.18 million (+2.88% vs.  2007)
  • Pre- tax profit:  7.74 million (-7.86% vs. 2007)
  • Net debt:  €386.83 million (+13.2% vs December 31st, 2007)

 

The Board of Directors of IGD S.p.A., a company active in the retail real estate sector and listed on the STAR segment of the Italian Stock Exchange, met today to examine the results for first quarter 2008 which confirm a performance in line with the 2008 targets for investment portfolio and profitability.

First quarter 2008 closed with total revenues and operating income of  €21.02 million (mn), an increase of 14.62% when compared to the €18.34 mn reported in the same period 2007.  This increase is primarily attributable to the contribution made by the Mondovicino mall, acquired in November 2007, and by the Millenium Gallery, which in first quarter 2007 had only contributed for one month; revenues from services also had a positive impact as their contribution grew from €0.62 mn in first quarter 2007 to €1.56 mn in the quarter that just ended thanks to new agency and facility management mandates.

EBITDA rose 2.57% over the €11.96 mn reported in first quarter 2007 to €12.26 mn.

EBIT reached €12.18 mn, an increase of 2.88% when compared to first quarter 2007.

Pre-tax profit fell 7.86% from the €8.4 mn reported in the first quarter of the prior year to €7.74 mn, due primarily to an increase in net financial charges which totaled €4.44 mn, compared to €3.43 mn in first quarter 2007. The increase in net financial charges reflects the increased debt connected to the convertible bond of €230 mn issued on June 28th, 2007 and a mortgage loan of €100 mn pertaining to the subsidiary Immobiliare Larice.

The increase in interest rates had just a marginal effect as the debt is primarily long term and is covered by IRS (Interest Rate Swaps); the cost of the convertible bond debt, recognized at 6.03% in accordance with IAS, moreover has a coupon of 2.5%.

Net debt, which totaled € 341.62 mn at December 31st, 2007, amounted to €386.83 mn at March 31st,  2008.

Net equity at March 31st amounted to €736.08 mn due the income realized in the period and the purchase of treasury shares.  At the end of the quarter IGD had purchased a total of 9,677,456 ordinary shares or 3.129% of the share capital ,for a total of €19,665,662 in additon to the accessory charges.

IGD’s CEO Filippo Carbonari commented: “The operating margins in this period continue to be very satisfying and in line with expectations though for a more complete picture of IGD’s operating results it is more meaningful to look at the yearly vis -a-vis the quarterly figures. IGD, in fact, usually begins operations 18 to 24 months prior to the opening of new commercial centres meaning that operating costs are recognized before the revenues can be generated during a time of rapid growth for our investment portfolios. We believe that, for this reason, our operating results present a snapshot of very healthy growth.”

“In terms of financial management – continued Filippo Carbonari – we continue to have a stable balance which will allow us to sustain the future investments we have planned with a gearing of 0.53 compared to the 1.5 target indicated in the 2008-2012 Business Plan.”

IGD’s Board of Directors also approved the merger by incorporation of the wholly owned company M.V.srl, related to the last centre opened in Mondovì,  in IGD SIIQ S.p.A. This merger will make it possible to optimize the use of capital and resources and is in line with the Group’s general reorganization strategy designed to obtain a slimmer and more efficient corporate structure.