- Sales increase trend
- EBT Euro 13 mil. for INTRACOM HOLDINGS parent company
- Negative impact to the Group''s Earnings after tax due to the debit difference and taxes from the "sub-group sales" transaction
INTRACOM HOLDINGS group sales increased in the 9M 2006, reaching Euro 251.6 mil. up by 27% (not including sales of Euro 24 mil. made by HOL, that were not in 2005 results), compared to 9M 2005. EBITDA had an important improvement of 122% reaching Euro 23.5 mil. (including the capital gain of Euro 12 mil. from the sale of Forthnet stake). The Group''s ΕΒΤ reached Euro 0.4 mil. The consolidation of Hellas On Line (HOL) results suppressed profit margins since HOL is operating in a particularly competitive market that currently has low profit margins. Parent company''s EBITDA were Euro17.1 mil. and net profits from continuing operations reached Euro10 mil.
In 9M 2006 new contracts signed by INTRACOM HOLDINGS reached Euro 468.2 mil.; more than 50% (Euro 241.4 mil.) of these contracts came from international activities. Specifically, in Telecommunications new contracts from Greece are Euro121 mil. and Euro159.7 mil. from abroad, in Defense Systems Euro 0.5 mil. from Greece and Euro23.9 mil. from abroad, for IT Euro13.9 mil. from Greece and Euro57.8 mil. from abroad, for Constructions Euro 67 mil. from Greece; and, for Telecom Services Euro 24.4 mil. from Greece.
Regarding the sales break down according to the Group''s basic activities for 9M 2006 - after the deduction of intra-group sales - the larger part comes from ΙΤ Services reaching Euro 72.5 mil. Constructions'' sales followed, reaching Euro 60.6 mil. and, Defense Applications were Euro 58.8 mil. Telecommunication products and services reached Euro 30.7 mil., telecommunication services sales reached Euro24.4 mil., while the remaining non-distributable sales have reached Euro4.6 mil.
It is worth mentioning that the consolidated data of 9M 2006 do not include INTRACOM TELECOM''s discontinuing operations, while they include Hellas On Line for the period 2/1 - 9/30/2006. The respective data of the 9M2005 has been adjusted for comparable reasons. 9M 2006 Group Earnings before taxes (ΕΒΤ) come as the result if we subtract from the Group EBIT figure Euro 6.4 mil financial expenses, and Euro 2.7 mil. which is the net result of all subsidiary companies that are consolidated under the net equity method (this net result includes the 49% of the discontinuing operations of INTRACOM TELECOM for Q3 2006).
The 9M 2006 group net loss from discontinuing operations of Euro 25.1 mil. includes capital losses of Euro 19.1 mil as the result of the sale of 51% of INTRACOM TELECOM, the transaction taxes of INTRACOM TELECOM worth Euro 6.6 mil., as well as the net income of INTRACOM TELECOM for the period 1/1-6/30/2006 (Euro 0.6 mil).
The acquisition of Hellas On Line (HOL) was finalized on 31/1/2006. Therefore, HOL financial results for the period of 2/1-9/30/2006 are fully consolidated for the same period. The capital gain resulting from the sale of Forthnet SA stake, worth Euro12.0 mil., is included in the operational results of the Group''s parent company for 9M 2006. In addition, 9M 2005 results included the net financial gain of Euro 5.3 mil. from valuation of derivative products.