BUENOS AIRES, Argentina, Feb. 11 /PRNewswire-FirstCall/ -- IRSA Inversiones y Representaciones Sociedad Anonima (NYSE: IRS; BASE: IRSA), the leading real estate company in Argentina, announces its results for First Half fiscal year 2008 ended on December 31, 2007.
HIGHLIGHTS -- Operating results for the business segments look very solid. Earnings for the first six months of the current fiscal year increased by almost 46% to Ps. 497 million in comparison with those from the same period of the previous fiscal year, while operating results were up by 35.5% to Ps. 141.9 million. EBITDA increased 37% to Ps. 200 million. If we consider only the rental segments (Shopping Centers, Offices and Hotels), EBITDA margins have made favorable progress when we compare the first six-month period of the present fiscal year against the same period for the year before, and the last quarter against the first quarter of fiscal 2008. -- The share of the different segments in net sales was as follows: sales and developments Ps.63.0 million; offices and other rental properties Ps.44.8 million; shopping centers Ps.172.6 million; hotels Ps.76.0 million; credit cards Ps.139.9 million; and financial operations and others Ps.0.3 million. -- In the Shopping Center segment, where we have seen an excellent performance, overall area continues to expand: in addition to the projects currently under way, we have reached an agreement for the purchase of a shopping center known as "Soleil Factory," located in the San Isidro district, Province of Buenos Aires, which is to be formalized when certain conditions are met. -- In the coming months, in the Sales and Developments segment, we expect to launch our first undertaking through our association with Cyrela Brazil Realty. During IIQ FY 2008, the company sold its rights over the Torre Renoir II project, reporting a profit of US$ 4.7 million -- Regarding our land reserves, in November 2007 the Mayor of the City of Buenos Aires approved the project as recommended by the Council of Urban Environmental Planning (COPUA). We are now evaluating which steps to take next in the definition and implementation of the project. -- We have completed the expansion works of the Hotel Llao Llao, which were finally opened at the end of December. -- In the second quarter of the present fiscal year, our subsidiary Banco Hipotecario partially reversed the negative results of the first quarter, which were due to unusual circumstances such as differences of valuation for holdings of particular financial assets in the portfolio at below-market value. The business indicators continue to be solid. -- As of November 14, 2007, holders of convertible bonds and options had converted and exercised respectively a large portion of their holdings, raising the total company outstanding shares to 578,676,460. As a result of this, there are no outstanding convertible bonds or warrants. Furthermore, during this period the company cancelled other obligations and loans for a total of US$ 40 million. After the close of the period Fitch Rating increased the company's international debt ratings from B level to B+ and the national ratings from A- to AA- Financial Highlights (In thousands of Argentine Pesos) 12/31/2007 12/31/2006 Total Sales 496,616 340,331 Operating income 141,901 104,694 Net Income 5,784 66,120 Net Income per GDS 0,10 1,51 Net Income per GDS diluted 0,10 1,21 12/31/2007 6/30/2007 Total Current Assets 982,900 1,175,790 Non Current Assets 3,173,074 2,969,109 Total Assets 4,155,974 4,144,899 Short-Term debt 77,712 196,655 Total Current Liabilities 558,219 652,082 Long-term debt 1,096,097 1,217,866 Total Non Current Liabilities 1,263,996 1,395,693 Total Liabilities 1,822,215 2,047,775 Minority interest 458,672 450,410 Shareholders' Equity 1,875,087 1,646,714 About IRSA:
IRSA Inversiones y Representaciones S.A. (NYSE. IRS, BCBA: IRSA) is Argentina's largest, most well-diversified real estate company, and it is the only company in the industry whose shares are listed on the Bolsa de Comercio de Buenos Aires and The New York Stock Exchange. Through its subsidiaries, IRSA manages an expanding top portfolio of shopping centers and office buildings, primarily in Buenos Aires. The company also develops residential subdivisions and apartments (specializing in high-rises and loft-style conversions) and owns three luxury hotels. Its solid, diversified portfolio of properties has established the Company as the leader in the sector in which it participates, making it the best vehicle to access the Argentine real estate market. Additionally, IRSA owns an 11.8% stake in Banco Hipotecario, Argentina's largest mortgage supplier in the country.
A LONGER VERSION OF THIS PRESS RELEASE WITH DETAILED INFORMATION IS AVAILABLE ON THE WEB SITE: WWW.IRSA.COM.AR
IRSA cordially invites you to participate in its Second Quarter Fiscal Year 2008 Results Conference Call
Wednesday, February 13, 2008 at 9:00 Eastern Time
To participate, please call:
800-418-7236 if you are in the U.S. or
973-935-8757 for international calls
http://www.videonewswire.com/event.asp?id=45924
CONTACT:
Alejandro Elsztain, Director
Gabriel Blasi, CFO
David Perednik, CAO
+5411-4323-7449
