Corporate News
Here you will find announcements about Deutsche Euroshop.
14. November 2006
Deutsche EuroShop: Solid development in the first nine months 2006
Deutsche EuroShop AG / Quarter Results
Corporate news transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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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.
Key Data of Deutsche EuroShop (IFRS)
in Euro million 01 Jan.- 01 Jan.- +/-
30 Sep. 2006 30 Sep. 2005
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%
Share of consolidated profit
attributable to Group
shareholders 30.2 13.7 121%
Earnings per share (Euro) 1.76 0.87 102%
30 Sep. 2006 31 Dec. 2005 +/-
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 in % 113 96
Cash and cash equivalents 102.0 197.2 -48%
Deutsche EuroShop AG, Patrick Kiss, Oderfelder Straße 23, 20149 Hamburg,
Tel. +49 (0)40 - 41 35 79 20, Fax +49 (0)40 - 41 35 79 29,
mailto:ir@deutsche-euroshop.com, http://www.deutsche-euroshop.com
DGAP 14.11.2006
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Language: English
Issuer: Deutsche EuroShop AG
Oderfelder Straße 23
20149 Hamburg Deutschland
Phone: +49 (0)40 413 579-0
Fax: +49 (0)40 413 579-29
E-mail: ir@deutsche-euroshop.de
WWW: www.deutsche-euroshop.de
ISIN: DE0007480204
WKN: 748020
Indices: MDAX
Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in
Berlin-Bremen, Hannover, München, Hamburg, Düsseldorf,
Stuttgart
End of News DGAP News-Service
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