LAMDA Development consolidated turnover reached Euro 46,3 million in 1st qt 2006 compared to Euro17,2 million in same period of previous year 2005, showing an increase of 169%. The growth in group turnover is mainly attributed to the revenues generated by the two Shopping and Entertainment Centers, "The Mall Athens" and "Mediterranean Cosmos", as well as to the continuing sales of residential units by LAMDA Olympia Village. It should be noted that group turnover no longer consolidates the turnover of Swissport LAMDA Hellas after its disposal in June 2005.
Group turnover reiterates the strategic focus on Real Estate development, management and investment.
Consolidated net profits after minority interest increased significantly as it reached Euro 6, 6 million compared to a loss of Euro 3,1 million in the corresponding period last year.
Consolidated net profit increased by Euro12,9 million or Euro 9,7 million after deducting minority interests primarily due to the successful operation and management of the two Shopping and Entertainment Centers. The reduction of corporate income tax rate had also a positive effect as it reduced deferred taxes by Euro5,4million. This favorable development counterbalanced the increase in financial expenses by Euro 4,2million which are now expensed and no longer capitalized as in the previous periods, given the completion and commencement of operation of the group's real estate developments.
LAMDA Olympia Village SA generated net profits of Euro7,6 million against a loss of Euro1million in the 1st quarter of 2005. Total EBITDA reached Euro8,5million, Euro5million of which pertain to net operating income from "The Mall" whereas the remaining Euro3,5million were generated by residential sales in "ILIDA".
PYLEA SA posted net profits of Euro4,2 million compared to a loss of Euro0,6million in the corresponding period in the previous year. The entire income is generated by the operation of "Mediterranean Cosmos".
LAMDA TechnOL Flisvos Marina SA posted losses of Euro0,8million compared to losses of Euro1,5million in the 1st quarter of 2005. This improvement stems from the increase in sales revenue which reached Euro1,4million compared to Euro0,9milion in the first quarter of 2005. It should be emphasized that negative results are attributed to the lease payments to ETA since, by applying the principle of prudence, the company charges its financial results by the full amount of lease payments requested by ETA (Hellenic Tourist Development Company), despite the fact that the final arbitration decision is in process and not issued yet. This arbitration decision is expected to decide the lease payments not only for the current year but also for the previous years 2005 and 2004. Furthermore, it is worth noting that the construction works in the marina resumed in the beginning of February 2006, after a 12 month suspension, given the withdrawal of the petition to the Council of State by the Municipality of Paleo Faliro.
The parent company LAMDA Development posted losses of Euro3,1million compared with losses of Euro0,8million in the 1st quarter of 2005. This outcome is mainly attributed to a Euro1million one-off charge representing taxes and notary's fees paid for the transfer of residences to the Municipality of Maroussi. Financial expenses increased by Euro0,6million and an additional Euro0,6 million burdened financial results as increased personnel costs arising from the transfer of personnel from subsidiary LAMDA Estate Development following a group reorganization.
LAMDA Shipyards continued with its efforts to reorganize and contain costs. Consolidated financial results deteriorated when compared to the 1st quarter of the previous year due to the decrease in turnover and one-off expenses of Euro0,5million aiming to achieve a permanent cost reduction on an annuity basis. Consolidated turnover reached Euro2 million and consolidated losses reached Euro0,7million compared to Euro3,1million turnover and Euro0,2million losses in the 1st quarter of 2005.
Hellix SA posted a turnover of Euro0,4million, increased by 28% compared to the corresponding period in 2005. Profit before taxes reached Euro67thousand, increased by 81%.
It should be noted that both Shopping and Leisure Centers have had a very successful course to date by measure of the frequency of visits and the commercial results. The Mall Athens is fully let and Mediterranean Cosmos is 96% let.
The company continues its efforts towards the concentration of its business activities in the development, management and investment in real estate in Greece and abroad. The company's strategy for 2006 is focused on the following areas:
- Further improvement of financial and operating results οf The Mall Athens and Mediterranean Cosmos
- Intensification of efforts towards the successful commercialization of ILIDA Business Center (office complex) and the sale of the remaining apartments of the residential complex of ILIDA ,developed by LAMDA Olympia Village - Completion of the investment works for the upgrading of Flisvos Marina in order to be in full force by the end of 2006
- Improvement of the operating results of LAMDA Shipyards through the containment of the operating costs of the company
- Maintain leadership in Greece in the management and development of shopping and leisure centers as well as expand in the development and management of outlets, big boxes, holiday residences and a lesser emphasis on new office building.
- Intensify efforts towards new developments in Central Eastern Europe
- Further exploit its strategic alliances with international and national real estate companies
- Achieve an optimum balance of risk reward ration per investment
- Development with third party investors, and management of a close end fund with the purpose to invest in real estate in Central Eastern Europe. The financial results of the first quarter of 2006 will be published in the press on 29/5/2006 and will be announced on the company's website (www.lamda-development.net).