FIMALAC : FIMALAC : Fiscal 2012 Results (October 1, 2011 to December 31,2012)
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 €197.8 million for the period, compared
with €41.6 million in the previous fiscal year, which covered the 12 months
ended September 30, 2011.
(in € millions) 12 months to September 15 months to December
30, 2011 31, 2012
Net result from fully
Recurring operating result (8.9) (9.3)
North Colonnade fair value (24.4)
Net financial result (8.5) (15.5)
Other (2.2) (9.7)
Share of profit of associates 10.8 10.3
Fitch Group profit for the 50.4 74.5
Net gain on the disposal of 10% 81.2
of Fitch Group
Net gain on the disposal of 90.7
Profit attributable to equity 41.6 197.8
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
II) AN EXCELLENT PERFORMANCE BY FITCH
1) Recurring operating profit of €250.9 million
(in € 12 months to 15 months to % change % change
millions) September 30, 2011 December 31, (reported) (like-for-like)*
2012 12 15 12 months 15
months months 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%
* Based on a comparable scope of consolidation and at constant exchange
** 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
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 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
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 €81.2 million,
compared with an original price of €25 million.
III) OTHER SIGNIFICANT EVENTS
1) Groupe Lucien Barrière, 40%-owned by Fimalac Développement since March
2011, reported revenue of €1,095 million (before gambling taxes), virtually
unchanged from the year before despite a difficult economic environment.
Fimalac's share of net profit amounted to €10.2 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 €110 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 €24.4
IV) DIVIDEND OF €1.80 PER SHARE
At the Annual Shareholders' Meeting on June 11, 2013, the Board of Directors
will recommend paying a dividend of €1.80 per share, compared to €1.50 the
year before. The ex-dividend date will be June 14 and the dividend will be
payable as from June 19.
The €1.80 dividend includes a special dividend of€0.30 per share to take into
account the strong fiscal 2012 profit, which was positively impacted by major
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information contained therein.
Source: FIMALAC via Thomson Reuters ONE
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