Friday, 15 December 2017

Analysts: ECM REI to end Q1 in a loss worth CZK 92.4m

CBW |
26 May 2009

Prague, May 25 (CTK) - Real estate company ECM Real Estate Investments (ECM REI) will post a loss worth EUR3.6m (Kc92.4m) in Q1 this year, which is a year-on-year improvement compared with a loss of EUR14.9m (Kc393m) the firm posted in 2008, analysts polled by CTK have said.

ECM REI will make public its consolidated results for Q1 on May 27, following the end of trading on the Prague Stock Exchange (BCPP).

"Even if the company remains in a loss in Q1, we should probably observe a year-on-year growth in sales and a decrease in quarterly losses," BH Securities analyst Petr Hlinomaz said, who estimated a loss of EUR3.7m (nearly Kc98m).

Pavel Bartek from Ceska sporitelna expects a loss of EUR2m (almost Kc53m), while Komercni banka's analyst Miroslav Adamkovic expects EUR5m worth of loss.

Analysts estimate operating results to improve due to higher net revenues from lease.

"The change on the financial level is given by the exchange rate development. While the firm was losing a year ago, we are expecting a slight profit this year," Adamkovic said.

Changes in the revaluation of portfolio should also be minimal since the revaluation is not usually done on a quarterly basis.

According to Bartek, the released figures should not have a major impact on trading in ECM REI shares, which traded for Kc339 a piece around noon. However, since the beginning of this year, ECM REI experienced both a growth and a slump by tens of percent, and trading in its shares was suspended several times.

ECM REI was established in 1991 by Milan Janku, the company's majority shareholder. The firm's headquarters are in Luxembourg.

The office complex in the Prague district of Pankrac is one of the major projects of the firm in the capital. Besides the Czech Republic, the firm also carries business in Russia, Poland and China. ECM REI is traded on the Prague Stock Exchange (BCPP).