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Fotex H1 profits climb 35% as costs narrow

Property holding company Fotex's first-half after-tax profit climbed 35.5% to HUF 2.93 billion from the same period a year earlier as costs fell faster than sales, the company's consolidated IFRS report for the period published late Wednesday shows.

Fotex's revenue dropped 10.4% to HUF 18.28 billion in H1 from the same period a year earlier. Cost of sales dipped 30.2% to HUF 4.34 billion, causing gross margin to narrow just 1.7% to HUF 13.94 billion.

Operating costs fell 14.0% to HUF 10.10 billion, helped by a steep 23.7% decline in payroll costs to HUF 3.5 billion.

Pre-tax profit rose 35.7% to HUF 3.94 billion.

Fotex had total assets of HUF 138.26 billion on June 30, 2009, 12.9% more than twelve months earlier. Net assets slipped 3.6% to HUF 107.94 billion as long-term liabilities jumped to HUF 19.01 billion from just HUF 144 million twelve months earlier. Fotex said the reason for the big increase was an €18.4 million loan taken out by its recently established Dutch unit from FGH Bank in April. (MTI-ECONEWS)