First Quarter 2006 Financial Results in accordance with the IFRS
LAMDA Development: First Quarter 2006 Financial Results in accordance with International Financial Reporting Standards (IFRS)
LAMDA Development consolidated turnover reached 46,3 million in 1st qt 2006 compared to 17,2 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, as indicated in the following table:
| millions | Real Estate Investment | Real Estate Sales | Project Management | Other Revenue | Total |
| 1st Qt 2006 | 14,4 | 27,0 | 1,3 | 3,6 | 46,3 |
| 1st Qt 2005 | 1,2 | 7,7 | 2,4 | 5,9 | 17,2 |
Consolidated net profits after minority interest increased significantly as it reached 6, 6 million compared to a loss of 3,1 million in the corresponding period last year.
Consolidated net profit increased by 12,9 million or 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 5,4million. This favorable development counterbalanced the increase in financial expenses by 4,2million which are now expensed and no longer capitalized as in the previous periods, given the completion and commencement of operation of the groups real estate developments.
LAMDA Olympia Village SA generated net profits of 7,6 million against a loss of 1million in the 1st quarter of 2005. Total EBITDA reached 8,5million, 5million of which pertain to net operating income from The Mall whereas the remaining 3,5million were generated by residential sales in "ILIDA".
PYLEA SA posted net profits of 4,2 million compared to a loss of 0,6million 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 0,8million compared to losses of 1,5million in the 1st quarter of 2005. This improvement stems from the increase in sales revenue which reached 1,4million compared to 0,9milion 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 3,1million compared with losses of 0,8million in the 1st quarter of 2005. This outcome is mainly attributed to a 1million one-off charge representing taxes and notarys fees paid for the transfer of residences to the Municipality of Maroussi. Financial expenses increased by 0,6million and an additional 0,6 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 0,5million aiming to achieve a permanent cost reduction on an annuity basis. Consolidated turnover reached 2 million and consolidated losses reached 0,7million compared to 3,1million turnover and 0,2million losses in the 1st quarter of 2005.
Hellix SA posted a turnover of 0,4million, increased by 28% compared to the corresponding period in 2005. Profit before taxes reached 67thousand, increased by 81%.
