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FIMALAC: First Half 2013 Results

PARIS, Sept. 13, 2013 (GLOBE NEWSWIRE) --

I) FIMALAC FIRST-HALF CONSOLIDATED RESULTS In the first six months of 2013, Fimalac reported profit attributable to equity holders of the parent of €36.8 million. This compares with €20.7 million for the prior-year period before taking into account the net capital gain of €81.2 million realized on the sale of 10% of Fitch Group in April 2012. The sharp 77.8% underlying improvement excluding the capital gain broke down as follows: (in € millions) | First-half 2012* | | First-half 2013 |(1 Jan-30 June 2012)| |(1 Jan-30 June 2013) -----------------------------------+--------------------+-+--------------------- | | | -----------------------------------+--------------------+-+--------------------- Net result from fully consolidated| (9.3)| | (3.8) companies | | | -----------------------------------+--------------------+-+--------------------- | | | -----------------------------------+--------------------+-+--------------------- Fimalac's share of Fitch Group| 30.1| | 39.0 profit for the period | | | -----------------------------------+--------------------+-+--------------------- | | | -----------------------------------+--------------------+-+--------------------- Fimalac's share of the profits and| (0.1)| | 1.6 losses of other associates | | | -----------------------------------+--------------------+-+--------------------- | | | -----------------------------------+--------------------+-+--------------------+ Profit attributable to equity | 20.7| | 36.8| holders of Fimalac, excluding | | | | capital gains | | | | -----------------------------------+--------------------+-+--------------------+ | | | -----------------------------------+--------------------+-+--------------------- Net gain on the sale of 10% of | 81.2| | Fitch Group (April 2012) | | | -----------------------------------+--------------------+-+--------------------- | | | -----------------------------------+--------------------+-+--------------------+ Profit attributable to equity | 101.9| | 36.8| holders of Fimalac | | | | +--------------------+ +--------------------+ * Following the change of fiscal year-end to 31 December from 30 September, and to facilitate comparisons between accounting periods, pro forma figures are presented for the period 1 January-30 June 2012. Net profit reported for the interim period from 31 October 2011 to 31 March 2012 totaled €104.5 million, including a capital gain of €85.8 million realized on the sale of Algorithmics. The strength of consolidated earnings can be explained by the robust operating performance delivered by Fitch, which is now accounted for by the equity method. Fully consolidated companies include Fimalac (the parent company), North Colonnade (owner of the London office building) and Vega (the entertainment venue manager). First-half profit of 40%-owned Group Lucien Barrière was limited as usual, as this company's business is seasonal and primarily driven by summer demand. II) FITCH GROUP INTERIM RESULTS (in € millions) | First-half |First-half 2013| % change | % change | 2012* |(1 Jan-30 June |(reported)| (like-for- |(1 Jan-30 June | 2013) | | like)** | 2012) | | | -------------------+---------------+---------------+----------+---------------- | | | | -------------------+---------------+---------------+----------+---------------- Revenue | 317.1| 378.4| + 19.3% | + 17.4% -------------------+---------------+---------------+----------+---------------- | | | | -------------------+---------------+---------------+----------+---------------- EBITDA*** | 120.3| 159.6| + 32.7% | + 35.2% -------------------+---------------+---------------+----------+---------------- | | | | -------------------+---------------+---------------+----------+---------------- Recurring | 105.7| 139.6| + 32.1% | + 35.8% operating profit | | | | -------------------+---------------+---------------+----------+---------------- | | | | -------------------+---------------+---------------+----------+---------------- * Pro forma figures. ** Based on a comparable scope of consolidation and at constant exchange rates. *** EBITDA: Earnings before interest, taxes, depreciation and amortization. Fitch reported revenue of €378.4 million ($497.2 million) in the first half of 2013, up a strong 19.3% as reported and 17.4% like-for-like, from €317.1 million ($411.4 million) in the year-earlier period. In the ratings segment, Fitch Ratings turned in a good performance with first- half revenue of €308.1 million ($404.9 million), reflecting sustained investor confidence. The subscription-based research services offered by Fitch Solutions, Fitch's second business segment with first-half revenue of €55.3 million ($72.6 million), are maintaining their steady growth, attesting to the research team's credibility. The third business segment, corresponding to specialized training provider Fitch Learning, reported revenue of €15 million ($19.7 million) for the first half of 2013. The fastest growing regions were Europe, Middle East, Africa (EMEA), with like- for-like growth of 23.1%, and North America, with 18.8%. The gains were spread across most of the business base, particularly the corporate ratings segment. This robust performance was supported by good cost discipline, leading to an even sharper increase in operating results for the first half of the year, with EBITDA up 35.2% like-for-like. These growth rates should not be extrapolated to the full year, as issuance in certain segments such as corporates was exceptionally high in the first six months, and will probably be weaker in the second half of the year. Moreover, second-half 2012 constituted a high basis of comparison. III) RECENT DEVELOPMENTS 1) Creation of a leading digital media and news group In July 2013, Fimalac announced that it had signed all of the agreements required to acquire control of an amalgamation comprising Webedia, TFco (Terrafemina websites and various consulting businesses) and Allociné. Webedia manages leading news aggregators like purepeople.com and puremedia.com, which are enjoying steady growth in audience numbers. Already established in consulting, outsourced content creation and web community management for brands and companies, Webedia will exploit the industry inroads made by TFco and strengthen its presence among female demographics by leveraging Terrafemina's expertise. Allociné is France's number one news media group in the cinema and TV-series segment and the world's third largest digital platform in this niche. Through these acquisitions Fimalac has created France's fourth largest digital media group. Combined with its interests in companies specialized in live entertainment production and entertainment venue management, it has also become the leader in the entertainment segment. As a result, Fimalac will operate seamlessly across the media and entertainment value chain and will utilize the resources generated by its operations to speed its growth in this area, both in France and internationally, where Webedia and Allociné are already established. <0} 2) London office building fully let Through its North Colonnade Ltd subsidiary, Fimalac owns a large office building in London's Canary Wharf district. Offering some 33,000 sq.m. of office space, the building represents a significant asset for Fimalac. Fitch set up its London headquarters there as soon as it was completed and one floor was leased by Algorithmics, a former subsidiary of Fitch, for an initial occupancy rate of roughly 40%. Fimalac's marketing strategy for the remaining floors consisted of looking outside the Group for a first-class tenant with a strong capital base capable of leasing all of the vacant space on a long-term basis. This goal has been met with the signature in early August 2013 of a lease with KPMG, one of the world's leading accounting and consulting firms, for all of the available space. With offices in the next-door building, the firm has decided to make the Canary Wharf business district its London base. Built to the highest technical and safety standards and fully let under long- term leases, mainly to Fitch and KPMG, the building will provide Fimalac with a secure revenue stream over many years. RESULT0613AN: http://hugin.info/143461/R/1729206/577661.pdf [HUG#1729206] Source:FIMALAC