PARIS--(Marketwire - Mar 26, 2013) -
I) CONSOLIDATED RESULTS
Following the change in the Group's accounting year-end, fiscal 2012 is a transition year exceptionally covering the 15-month period from October 1, 2011 to December 31, 2012.
______________
Attributable net profit amounted to EUR197.8 million for the period, compared with EUR41.6 million in the previous fiscal year, which covered the 12 months ended September 30, 2011.
(in EUR millions) | 12 months to September | | 15 months to
| 30, 2011 | | December 31, 2012
----------------------------+------------------------+-+------------------
| | |
----------------------------+------------------------+-+------------------
Net result from fully| | |
consolidated companies: | | |
----------------------------+------------------------+-+------------------
Recurring operating result | (8.9)| | (9.3)
----------------------------+------------------------+-+------------------
North Colonnade fair value| | | (24.4)
adjustment | | |
----------------------------+------------------------+-+------------------
Net financial result | (8.5)| | (15.5)
----------------------------+------------------------+-+------------------
Other | (2.2)| | (9.7)
----------------------------+------------------------+-+------------------
| | |
----------------------------+------------------------+-+------------------
Share of profit of| 10.8| | 10.3
associates (excluding| | |
Fitch) | | |
----------------------------+------------------------+-+------------------
| | |
----------------------------+------------------------+-+------------------
Fitch Group profit for the | 50.4| | 74.5
period | | |
----------------------------+------------------------+-+------------------
| | |
----------------------------+------------------------+-+------------------
Net gain on the disposal of| | | 81.2
10% of Fitch Group | | |
----------------------------+------------------------+-+------------------
| | |
----------------------------+------------------------+-+------------------
Net gain on the disposal of| | | 90.7
Algorithmics | | |
----------------------------+------------------------+-+------------------
| | |
----------------------------+------------------------+-+------------------
| | |
----------------------------+------------------------+-+-----------------+
Profit attributable to | 41.6| | 197.8|
equity holders of Fimalac | | | |
+------------------------+ +-----------------+
This profit performance reflected both the significant improvement in Fitch's operating profit over the period and the major capital gains realized by the Fimalac Group.
II) AN EXCELLENT PERFORMANCE BY FITCH
1) Recurring operating profit of EUR250.9 million
+--------+------------+-----------+-------------------+-------------------+
| |12 months to| 15 months | % change | % change |
| (in EUR| September |to December| (reported) | (like-for-like)* |
|millions) 30, 2011 | 31, 2012 | | |
+--------+ | +---------+---------+---------+---------+
| | | |12 months|15 months|12 months|15 months|
+--------+------------+-----------+---------+---------+---------+---------+
| | | | | | | |
+--------+------------+-----------+---------+---------+---------+---------+
|Revenue | 525.7| 789.3| + 18.3% | + 19.3% | + 12.7% | + 14.1% |
+--------+------------+-----------+---------+---------+---------+---------+
| | | | | | | |
+--------+------------+-----------+---------+---------+---------+---------+
|EBITDA**| 176.7| 293.0| + 27.7% | + 32.5% | + 22.4% | + 26.6% |
+--------+------------+-----------+---------+---------+---------+---------+
| | | | | | | |
+--------+------------+-----------+---------+---------+---------+---------+
|Recurring 162.8| 250.9| + 22.1% | + 23.8% | + 17.3% | + 18.5% |
|operating | | | | | |
|profit | | | | | | |
+--------+------------+-----------+---------+---------+---------+---------+
| | | | | | | |
+--------+------------+-----------+---------+---------+---------+---------+
* Based on a comparable scope of consolidation and at constant
exchange rates
** EBITDA: Earnings before interest, taxes, depreciation and amortization
Demand for Fitch services was particularly strong during the period, driving increasingly faster growth, quarter by quarter, at both Fitch Ratings and Fitch Solutions. Over the 15 months to December 31, 2012, consolidated revenue rose by 19.3% as reported and 14.1% like-for-like (excluding the currency effect).
Revenue was higher across every region, with generally stronger gains in the corporate and financial institutions rating segments. In North America, growth was a robust 18.7% like-for-like over the 15-month period. Geographic diversification also acted as a powerful driver, with Asia and Latin America reporting like-for-like revenue up 17.3% and 19.5%, respectively, over the 15- months. Growth was slower in the Europe-Middle East-Africa region, with a 7% like-for-like 15-month gain.
Operating profit outpaced revenue growth, with 15-month EBITDA climbing 32.5% as reported and 26.6% like-for-like.
Alongside the rating operations, Fitch Solutions' subscription-based research and database services represent a solid second business, whose products are increasingly popular among specialized investors, financial institutions and large organizations. Fitch Solutions now accounts for nearly 17.5% of total Fitch revenue.
Fitch Group has also acquired 7city, a leading provider of learning and development solutions for the financial services industry. Based in London with offices in New York, Singapore and Dubai, 7city has more than 150 employees. Fitch will combine 7city with its Fitch Training unit to form Fitch 7city Learning, which will be the Group's third business alongside Fitch Ratings and Fitch Solutions.
2) Other significant events
a) Algorithmics was sold by Fitch Group on October 20, 2011 for about 2.3 times its original price. Fimalac's share of the net disposal gain came to EUR90.7 million.
2) On April 11, 2012, Fimalac sold 10% of Fitch Group to Hearst. The net capital gain recognized in income for the period stood at EUR81.2 million, compared with an original price of EUR25 million.
III) OTHER SIGNIFICANT EVENTS
1) Groupe Lucien Barrière, 40%-owned by Fimalac Développement since March 2011, reported revenue of EUR1,095 million (before gambling taxes), virtually unchanged from the year before despite a difficult economic environment. Fimalac's share of net profit amounted to EUR10.2 million in fiscal 2012.
2) Fimalac has become a top-tier player in France's entertainment industry through its show production and venue management operations. The aggregate revenue of these two activities (excluding Groupe Lucien Barrière's venue management and casino businesses) came to EUR110 million in 2012.
3) Despite the fact that the 80%-owned North Colonnade office building is a high-quality strategic asset, in light of the ongoing difficult context in London's office market, it was deemed prudent to record an impairment charge for the period, which reduced consolidated attributable net profit by EUR24.4 million.
IV) DIVIDEND OF EUR1.80 PER SHARE
At the Annual Shareholders' Meeting on June 11, 2013, the Board of Directors will recommend paying a dividend of EUR1.80 per share, compared to EUR1.50 the year before. The ex-dividend date will be June 14 and the dividend will be payable as from June 19.
The EUR1.80 dividend includes a special dividend of EUR0.30 per share to take into account the strong fiscal 2012 profit, which was positively impacted by major capital gains.
RES1112EN:
http://hugin.info/143461/R/1688438/553906.pdf
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Source: FIMALAC via Thomson Reuters ONE
[HUG#1688438]
FIMALAC 97, rue de Lille, 75007 Paris, France T. 01 47 53 61 50 F. 01.47.53.61.57
