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FIMALAC: FIMALAC : First Half Fiscal 2009 Results

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^{Published in Business and Finance on Wednesday, May 27th 2009 at 9:22 GMT, Last Modified on 2009-05-27 09:23:01 by Market Wire}  

PARIS--(Marketwire - May 27, 2009) - 1) Revenue: Improvement in Second-Quarter Fiscal 2009

Consolidated revenue for the first half of fiscal 2009 amounted to EUR 265.6 million versus EUR 297.9 million in the first six months of fiscal 2008, a decrease of 10.3% on a like-for-like basis*. Performance improved from quarter to quarter, with an 18.5% decline in the first quarter followed by a dip of just 0.6% in the second.

Fitch Ratings' first half revenue was down 13.6% like-for-like, to EUR 212.6 million, reflecting declines of 22.1% in the first quarter and 2.4% in the second.

Algorithmics reported revenue of EUR 53.1 million for first-half fiscal 2009, up 2.5% like-for-like.

2) Operating Profit: EUR 69.4 Million

Fitch Ratings' recurring operating profit amounted to EUR 72.2 million versus EUR 79.5 million, down 9.2% on a reported basis and 12.8% like-for-like. Its recurring operating margin rose to 32.3% like-for-like in first-half fiscal 2009 from 32.1% in the prior-year period.

Algorithmics' EBITDA** was a positive EUR 1.1 million for the first half of fiscal 2009. Its recurring operating loss, which takes into account amortization of intangible assets recognized at the time of the 2005 business combination, came to EUR 7.5 million compared to EUR 8.6 million in first-half fiscal 2008.

Fimalac's consolidated recurring operating profit for the first six months of fiscal 2009 amounted to EUR 59.7 million compared to EUR 65.7 million for the year-earlier period. After other operating income and expense, consolidated operating profit stood at EUR 69.4 million compared to EUR 78.9 million.

3) Net Financial Income/(Expense): Non-Recurring Impact of Interest Rate Hedges

At the end of 2007, Fimalac decided to directly finance the construction of Fitch's future headquarters in London, in order to benefit from the more favourable credit terms available to the Group's parent company. Fimalac has hedged its own borrowings at fixed rates until 2013.

Whereas the fixed rates obtained (3.99% for borrowings in euros and 5.24% for borrowings in pounds sterling) are considerably better than those commonly available for medium-term real estate loans, current accounting standards require that an expense be recognised for the difference between the six-year fixed rates obtained by Fimalac and the three-month rates. A non-recurring expense of EUR 28.3 million was therefore recorded under net financial income/(expense), of which EUR 23.9 million will be reversed over the remaining life of the hedges which expire in 2013.

4) Profit for the Period

Thanks to its robust operating profit, the Group reported a small profit for the period of EUR 0.8 million versus EUR 30.9 million in first-half fiscal 2008, despite the very negative, but non-recurring, impact of interest rate hedging transactions.

* Based on a comparable scope of consolidation and at constant exchange rates

**Earnings before interest, taxes, depreciation and amortization.

This information is provided by HUGIN