Warimpex is continuing its successful development in the current financial year with a positive result for the first half of 2019. During the reporting period, we generated a profit of EUR 17.9 million (H1 2018: loss of EUR 4.3 million). This can be attributed primarily to property sales, valuation gains and exchange rate gains.
Revenues in the Hotels segment dropped to EUR 4.8 million, which represents a decline of 24 per cent compared with the first half of 2018. This can be attributed primarily to the sale of the operating company for the Dvořák Hotel in the Czech town of Karlovy Vary. Revenues from the rental of office properties increased to EUR 9.2 million in the first half of 2019 (H1 2018: EUR 7.5 million). This revenue growth was largely driven by the purchase of the B52 office building in Budapest and the completion of Ogrodowa Office in the Polish city of Łódź in the previous financial year. Total revenues rose to EUR 15.2 million in the first half of 2019, while expenses directly attributable to revenues dropped from EUR 6.3 million in the prior-year period to EUR 6.0 million. Gross income from revenues amounted to EUR 9.2 million (H1 2018: EUR 8.1 million).
The EBITDA also increased, thanks in large parts to property sales. While EBITDA came to EUR 2.9 million in the first half of 2018, it advanced to EUR 9.9 million during the reporting period. EBIT also rose from EUR 2.7 million to EUR 16.6 million due to property sales and measurement gains. The financial result (including earnings from joint ventures) improved from minus EUR 7.2 million to EUR 4.2 million. This includes changes in foreign exchange rates in the amount of EUR 7.3 million (H1 2018: minus EUR 4.9 million).
Our strategic focus continues to be on building up our property portfolio – for example, the Mogilska Office 43 project in the Polish city of Krakow was opened in spring this year – and strengthening its earnings potential. Our goal is to increase revenue and improve gross income. The positive development of our business demonstrates the success of this strategy.
You can find the full Report on the First Half of 2019 here.