Earnings Release • May 22, 2017
Earnings Release
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May 22nd 2017 NEWS RELEASE
Financial group Eurohold Bulgaria AD, one of the largest Bulgarian public-listed companies, increased significantly its financial results in the first three months of 2017 due to a strong growth in the revenues of its three main business lines - insurance, car sales and leasing, Eurohold's interim consolidated financial statement showed.
The holding's consolidated operating revenues grew 16% on the year to BGN 295 million in the January-March period. Euroins Insurance Group AD, the group's insurance subholding, contributed most of all to the final result after having reported a growth of 44% in premium income in the first quarter of 2017 compared to the same period a year earlier to almost BGN 170 million. Automotive holding Avto Union AD and leasing holding Eurolease Group EAD, the other two subholdings within the group, also reported a double-digit sales growth. Avto Union AD sold totally more than thousand new cars in the first three months of the year that is over 30% growth compared to the same period last year.
Along with the increased revenues Eurohold Bulgaria AD more than doubled its consolidated operating profit to BGN 8.9 million. The company's net profit rose to BGN 1.6 million.
Eurohold Bulgaria AD increased its financial results mainly due to the good management of the business and the overall economic growth of the countries where the group has been presented. In the first quarter of 2017 Romania and Bulgaria for instance registered a GDP growth rate of 5.6% and 3.4% year-on-year, respectively. The Romanian insurance market has been rising at a fast pace, reaching its highest value since 2008.
Kiril Boshov, chairman of Eurohold Bulgaria's management board, said:: "The results we achieved are due to the growth of all business lines on all main markets on which the holding company has been operating. The overall economic growth in the region is driving additionally the sales of insurance products, new cars and leasing. We expect that our consolidated revenues will rise up to BGN 1.4 billion till the end of 2017 and this growth will be accompanied by an improved profitability of the company".
With the results achieved in the first three months of 2017 Eurohold Bulgaria AD confirmed its improved performance since 2016. Last year the holding's consolidated operating revenues surpassed BGN 1 billion for the first time in the group's history and the company turned to a consolidated net profit of BGN 6.9 million.
| BGN 000 | 01-03'2017 | 01-03'2016 | Промяна (%) |
|---|---|---|---|
| Revenues from operating activities | 295 891 | 255 313 | 16% |
| Operating profit (EBITDA) | 8 920 | 4 396 | 103% |
| Net profit | 1 590 | 21 | 7471% |
Source: Consolidated statement for the period ended March 31st, 2017
Eurohold Bulgaria is a leading Bulgarian company, listed on the BSE-Sofia and the WSE. The holding company operates across CEE and SEE, focused on non-banking financial services and asset management. Eurohold Bulgaria is a majority shareholder of Euroins Insurance Group (EIG), one of the largest independent insurance groups operating in the CEE and SEE insurance markets. EIG operates in seven European countries and owns insurance subsidiaries in four of them – Bulgaria, Romania, FYROM and Ukraine. The insurance group has been operating in Greece since 2014. It has over 2 million clients, 1600 employees and annual revenues of EUR 300 million.
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