MIG HOLDINGS S.A.
First Quarter 2010 Results
Consolidated sales for Q1 reached €457.7m, reflecting a 25% increase over the same period in the previous year.
Gross profit for Q1 amounted to €113.4m, representing a 2% improvement over the previous year.
At group level, the consolidated loss after tax from continuing operations amounted to €42.3m, while the loss after tax for the quarter from continuing and discontinued operations amounted to €89.3m. The bulk of these losses are primarily related to investments in the continued start-up operations of the new Olympic Air Group and are therefore recoverable as part of the announced transaction structure.
At company level, the loss after tax for the quarter amounted to €3.2m.
Given the strong liquidity and balance sheet with Net Asset Value of €3.3bn and further bolstered by the recent convertible bond issue, bringing current cash at company level to €634m, the Board has proposed at the Annual General Meeting (AGM) a constructive dividend of €0.10 per share.
The Dubai Group has announced its continued commitment as long-term shareholders of Marfin Investment Group, with full support to its management.
Marfin Investment Group (MIG) announced today its First Quarter 2010 results. The group reported results with consolidated sales for the quarter of €457.7m, reflecting a 25% increase year-on-year, and a consolidated loss from continuing operations after tax and minority interest of €42.3m. The net asset value (NAV) of the group currently stands at €3.3bn, representing NAV of €4.38 per share. Group profitability in the first quarter was affected by the traditional seasonality of business inherent in many of MIG's companies, such as Attica, Vivartia, and the Olympic Air Group, which generally experience their weakest operational performance in the first quarter of each year.
However, losses incurred relating to investments in the start-up of the Olympic Air Group are recoverable for MIG as part of the announced merger agreement and transaction structure with Aegean Airlines. Despite the effects of this seasonality and the greater economic conditions in the region, many of MIG's other companies, such as the Hygeia Group, FAI, MIG Real Estate, and Hilton Cyprus continued to deliver profits and maintain strong operational performance and growth for the quarter.
Commenting on the Q1 results, Dennis Malamatinas, Marfin Investment Group's Chief Executive Officer stated:
"The first quarter continued to be affected by the worsening of the economy in Greece, as well as in the greater region. Despite what were arguably the worst months in modern Greek history, our companies and subsidiaries have managed not only to hold on to their leading market positions, but gain market share in many instances. The first quarter is a traditionally a slower quarter for many of our sectors, such as air transportation and the passenger ferry sector, in which business picks up dramatically in the second quarter. The food, leisure and retail sectors also traditionally experience lower volumes during the first quarter of the year. Our consolidated group sales increased 25% over the same period during the previous year - no small feat, considering the negatively impacting external factors and adverse conditions which were and are out of our control. Our profit after tax, however, continues to be largely affected by the losses incurred by the Olympic Air Group as it continues its first year of operations as a completely new start up airline. It is worth reminding us that under the terms of our agreement to merge with Aegean Airlines, MIG will recover all losses incurred until the merger is completed. We continue to manage our companies prudently during these difficult times, adhering to our strategy of a defensive, disciplined approach towards investing in strong, market-leading, innovative companies, as well as emphasising our efforts to deliver longer term value to our shareholders by optimising efficiencies and capital structure, and consolidating market positions in all of our major subsidiary companies. Of course, we continue to firmly believe that all of the group's portfolio companies will yield operating profitability from 2011 onwards, rewarding those investors that take a longer term view of our standing within the regional markets." Contacts: Investor Relations: +30 210 350 4000, +44 207 054 9280 About MIG: Marfin Investment Group Holdings S.A. is an international investment holding company based in Greece and throughout Southeastern Europe. The Company believes it is uniquely positioned to take advantage of an expanding array of investment opportunities in this region; opportunities in which traditional private equity funds and investment vehicles lacking MIG's regional focus, scale, expertise, and/or its investment flexibility and financial resources, may find difficult to identify and exploit. MIG is quoted on the Athens stock exchange and has a portfolio of leading companies in mainly defensive sectors across the SEE region, grouped into Food & Beverage, Transportation, Healthcare, Financial Services, IT/Telecoms, and Private Equity sectors. Included amongst its portfolio and subsidiary companies is Vivartia, a leading food and food retail business in the region; Attica Group, a leading passenger ferry operator; Olympic Air, Greece's national flag carrier; the Hygeia Group of Hospitals, a leading private hospital group in Greece, Cyprus, Turkey, and Albania; Marfin Popular Bank; SingularLogic, the leading IT operator in Greece; and Robne Kuce Beograd, the largest chain of department stores in Serbia. As a truly diversified group, MIG has a global presence - with over 35% of its sales outside Greece, a presence in 40 countries, and more than 22 business segments overall. MIG employs over 56,000 employees and associates. The company has been listed on the Athens Stock Exchange since July 2007, when it raised €5.2bn in the largest rights issue by an investment company in global history at the time.
Gross profit for Q1 amounted to €113.4m, representing a 2% improvement over the previous year.
At group level, the consolidated loss after tax from continuing operations amounted to €42.3m, while the loss after tax for the quarter from continuing and discontinued operations amounted to €89.3m. The bulk of these losses are primarily related to investments in the continued start-up operations of the new Olympic Air Group and are therefore recoverable as part of the announced transaction structure.
At company level, the loss after tax for the quarter amounted to €3.2m.
Given the strong liquidity and balance sheet with Net Asset Value of €3.3bn and further bolstered by the recent convertible bond issue, bringing current cash at company level to €634m, the Board has proposed at the Annual General Meeting (AGM) a constructive dividend of €0.10 per share.
The Dubai Group has announced its continued commitment as long-term shareholders of Marfin Investment Group, with full support to its management.
Marfin Investment Group (MIG) announced today its First Quarter 2010 results. The group reported results with consolidated sales for the quarter of €457.7m, reflecting a 25% increase year-on-year, and a consolidated loss from continuing operations after tax and minority interest of €42.3m. The net asset value (NAV) of the group currently stands at €3.3bn, representing NAV of €4.38 per share. Group profitability in the first quarter was affected by the traditional seasonality of business inherent in many of MIG's companies, such as Attica, Vivartia, and the Olympic Air Group, which generally experience their weakest operational performance in the first quarter of each year.
However, losses incurred relating to investments in the start-up of the Olympic Air Group are recoverable for MIG as part of the announced merger agreement and transaction structure with Aegean Airlines. Despite the effects of this seasonality and the greater economic conditions in the region, many of MIG's other companies, such as the Hygeia Group, FAI, MIG Real Estate, and Hilton Cyprus continued to deliver profits and maintain strong operational performance and growth for the quarter.
Commenting on the Q1 results, Dennis Malamatinas, Marfin Investment Group's Chief Executive Officer stated:
"The first quarter continued to be affected by the worsening of the economy in Greece, as well as in the greater region. Despite what were arguably the worst months in modern Greek history, our companies and subsidiaries have managed not only to hold on to their leading market positions, but gain market share in many instances. The first quarter is a traditionally a slower quarter for many of our sectors, such as air transportation and the passenger ferry sector, in which business picks up dramatically in the second quarter. The food, leisure and retail sectors also traditionally experience lower volumes during the first quarter of the year. Our consolidated group sales increased 25% over the same period during the previous year - no small feat, considering the negatively impacting external factors and adverse conditions which were and are out of our control. Our profit after tax, however, continues to be largely affected by the losses incurred by the Olympic Air Group as it continues its first year of operations as a completely new start up airline. It is worth reminding us that under the terms of our agreement to merge with Aegean Airlines, MIG will recover all losses incurred until the merger is completed. We continue to manage our companies prudently during these difficult times, adhering to our strategy of a defensive, disciplined approach towards investing in strong, market-leading, innovative companies, as well as emphasising our efforts to deliver longer term value to our shareholders by optimising efficiencies and capital structure, and consolidating market positions in all of our major subsidiary companies. Of course, we continue to firmly believe that all of the group's portfolio companies will yield operating profitability from 2011 onwards, rewarding those investors that take a longer term view of our standing within the regional markets." Contacts: Investor Relations: +30 210 350 4000, +44 207 054 9280 About MIG: Marfin Investment Group Holdings S.A. is an international investment holding company based in Greece and throughout Southeastern Europe. The Company believes it is uniquely positioned to take advantage of an expanding array of investment opportunities in this region; opportunities in which traditional private equity funds and investment vehicles lacking MIG's regional focus, scale, expertise, and/or its investment flexibility and financial resources, may find difficult to identify and exploit. MIG is quoted on the Athens stock exchange and has a portfolio of leading companies in mainly defensive sectors across the SEE region, grouped into Food & Beverage, Transportation, Healthcare, Financial Services, IT/Telecoms, and Private Equity sectors. Included amongst its portfolio and subsidiary companies is Vivartia, a leading food and food retail business in the region; Attica Group, a leading passenger ferry operator; Olympic Air, Greece's national flag carrier; the Hygeia Group of Hospitals, a leading private hospital group in Greece, Cyprus, Turkey, and Albania; Marfin Popular Bank; SingularLogic, the leading IT operator in Greece; and Robne Kuce Beograd, the largest chain of department stores in Serbia. As a truly diversified group, MIG has a global presence - with over 35% of its sales outside Greece, a presence in 40 countries, and more than 22 business segments overall. MIG employs over 56,000 employees and associates. The company has been listed on the Athens Stock Exchange since July 2007, when it raised €5.2bn in the largest rights issue by an investment company in global history at the time.