SOURCE: FIMALAC

September 19, 2006 12:19 ET

Fimalac : First half 2006 results

PARIS -- (MARKET WIRE) -- September 19, 2006 -- FIRST-HALF 2006 RESULTS

ATTRIBUTABLE CONSOLIDATED NET PROFIT: EUR 472.7 million

REVENUE

+------------------------+--------------------+----------------+
|                        |Change first-half   |                |
|                        |2006/first-half 2005|                |
+------------------------+--------------------+----------------+
|                        |            Reported|  Like-for-like*|
+------------------------+--------------------+----------------+
|  Fitch Ratings         |             + 19.2%|         + 15.4%|
+------------------------+--------------------+----------------+
|  Algorithmics          |             + 31.4%|         + 17.2%|
+------------------------+--------------------+----------------+
|  Fitch Group           |             + 20.9%|         + 15.6%|
+------------------------+--------------------+----------------+
|  Other (parent company)|                n.m.|            n.m.|
+------------------------+--------------------+----------------+
|Consolidated revenue    |             + 20.8%|         + 15.5%|
+------------------------+--------------------+----------------+
+------------------------+--------------------+----------------+
Fitch Ratings enjoyed strong business growth in first-half 2006, with reported revenue up 19.2% to EUR 246.2 million from EUR 206.5 million in the year-earlier period.

Algorithmics, which was acquired at the end of January 2005, posted revenue of EUR 42.7 million for the six-month period, compared with EUR 32.5 million for the five months to June 30, 2005, an increase of 31.4% on a reported basis.

In all, consolidated revenue - including parent company revenue of EUR 0.2 million versus EUR 0.3 million - came to EUR 289.1 million compared with EUR 239.3 million, representing an increase of 20.8% on a reported basis and 15.5% like-for-like.

RECURRING OPERATING PROFIT

+-------------------------+--------------------+----------------+
|                         |Change first-half   |                |
|                         |2006/first-half 2005|                |
+-------------------------+--------------------+----------------+
|                         |            Reported|  Like-for-like*|
+-------------------------+--------------------+----------------+
|Fitch Ratings            |             + 18.8%|         + 13.9%|
+-------------------------+--------------------+----------------+
|Algorithmics             |             - 64.1%|         - 32.8%|
+-------------------------+--------------------+----------------+
|Fitch Group              |              + 6.3%|          + 8.7%|
+-------------------------+--------------------+----------------+
|Other (parent company)   |             + 18.2%|         + 18.2%|
+-------------------------+--------------------+----------------+
|Consolidated recurring   |             + 10.4%|         + 13.1%|
|operating profit         |                    |                |
+-------------------------+--------------------+----------------+
+-------------------------+--------------------+----------------+
Fitch Ratings reported 18.8% growth in recurring operating profit to EUR 70.1 million from EUR 59 million.

Algorithmics' recurring operating loss amounted to EUR 21 million compared with EUR 12.8 million. The first-half 2006 figure, which is in line with the budget, reflects the sharp increase in employee numbers to support business growth. It also includes amortization of intellectual property recognized in intangible assets at the time of the business combination, for EUR 7.2 million in first-half 2006 versus EUR 5.7 million in the year-earlier period.

Consolidated recurring operating profit, including the contribution of the parent company, came to EUR 43.7 million versus EUR 39.6 million.

ATTRIBUTABLE CONSOLIDATED NET PROFIT: EUR 472.7 million

Net profit attributable to equity holders of the parent came in at EUR 472.7 million compared with EUR 13.2 million in first-half 2005.

The total includes the EUR 81 million net gain on disposal of the Facom Group and the EUR 384.1 million net gain on the sale of a 20% stake in Fitch Group, less provisions set aside for sellers' warranties given in connection with business disposals carried out in prior periods or during the first half.

SHARE BUYBACKS AND CANCELLATIONS

The Company is continuing to implement the share buyback program authorized at the Annual Shareholders' Meeting of March 16, 2006. At its meeting today (September 19), the Board of Directors decided to cancel a further 1,480,000 shares, representing 4.1% of the issued capital.

Following these cancellations, 1,211,624 shares are held in treasury stock out of a reduced total of 34,328,678 shares, representing 3.5% of the current issued capital. They include shares representing 1.4% of the capital that are being held for allocation on exercise of stock warrants and options.

*Based on an identical Group structure and constant exchange rates.

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