FIMALAC I) Consolidated income statement for the six months ended June 30, 2016
When analyzing the presentation of the comparative income statement it is important to take into account the gain realized in first-half 2015 on the sale of 30% of Fitch Group, and the significant contribution made by equity-accounted companies, notably Fitch Group (20%-owned by Fimalac) and Barrière (40%-owned).
| (in € millions) | First-half | First-half | ||
| 2015 | 2016 | |||
| EBITDA (*) | 2.8 | 7.2 | ||
| Depreciation, amortization and provisions | (7.4) | (21.3) | ||
| Other operating income and expenses, net | (5.9) | (5.1) | ||
| Net financial income/(expense) | (86.7) | (32.6) | ||
| Income tax | 13.9 | 20.6 | ||
| Share of profit of equity-accounted investees | 31.3 | 43.3 | ||
| Capital gain on sale of 30% of Fitch Group | 1,652.9 | |||
| Other | 0.9 | 1.0 | ||
| Profit attributable to equity holders of the parent | 1,601.8 | 13.1 | ||
(*) EBITDA = earnings before interest, tax, depreciation, amortization and provisions.
Profit attributable to equity holders of the parent totaled €13.1 million in the first half of 2016. There were no material asset sales by fully consolidated companies during the period, whereas the profit figure for the first six months of 2015 included a €1,652.9 million gain on the sale of 30% of Fitch Group that took place in March 2015.
The proceeds from the 30% sale of Fitch Group included a €270 million foreign exchange gain arising due to the increase in the value of the US dollar that occurred between the date the sale was announced on December 12, 2014 and the actual transaction date of March 12, 2015. The net financial expense figure for the first half of 2016 includes a foreign exchange loss of some €30 million (versus €80 million in first-half 2015), of which €14 million corresponds to an unrealized loss which may increase or decrease depending on movements in the €/$ exchange rate and currency conversions and uses during the second half of the year.
Fitch, which is accounted for by the equity method on a 20% basis, contributed €26.8 million to consolidated profit in first-half 2016 (compared with €25 million in the same period of 2015). The contribution of 40%-owned Barrière, which is also accounted for by the equity method, rose to €15.5 million from €6.3 million in the first half of 2015, due to gains on sales of non-strategic assets.
Fimalac's Digital sector, organized around Webedia, and its Entertainment sector continued to expand their operations during the period, and Webedia's revenue came in ahead of the target originally set in the business plan.
- Condensed consolidated balance sheet
| (in € millions) | Dec. 31, 2015 | June 30, 2016 | ||
| Assets | ||||
| Goodwill, intangible assets and property and equipment | 905 | 1,499 | ||
| Equity-accounted investees | 392 | 401 | ||
| Other non-current assets | 157 | 180 | ||
| Other current assets | 192 | 288 | ||
| Cash and cash equivalents | 1,482 | 867 | ||
| 3,128 | 3,236 | |||
| Equity and liabilities | ||||
| Total equity | 2,203 | 1,952 | ||
| Long-term debt | 431 | 692 | ||
| Other non-current liabilities | 61 | 71 | ||
| Short-term debt | 258 | 344 | ||
| Other current liabilities | 175 | 176 | ||
| 3,128 | 3,236 |
The main changes in the consolidated balance sheet at June 30, 2016 compared with December 31, 2015 stemmed from three recent transactions (announced in previous press releases).
In June 2016, the Group acquired an office building in New York for $527 million (excluding transaction fees and transfer taxes). Out of this total, $250 million was raised through borrowings and the remaining amount was financed using Fimalac's own resources. Also in June 2016, the Group purchased an office building in Levallois-Perret, France, which is currently leased to Webedia. The cost of this acquisition came to €106 million (excluding transaction fees and transfer taxes), €70 million of which was financed by borrowings and the remainder by the Group's cash.
In May 2016, as a reminder, Fimalac bought back 6.3% of its own shares, through a simplified public offer, for approximately €172 million (excluding transaction fees), which it paid in cash. As a result of this transaction - and the payment of the 2015 dividend - the Group's equity decreased during the first half of 2016.
As well as carrying out the above three main transactions, Fimalac pursued the development of its Digital and Entertainment sectors in first-half 2016.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: FIMALAC via Globenewswire
