Paris : FIM

May 30, 2012 12:52 ET

FIMALAC : First-Half Fiscal 2012 Results

PARIS, FRANCE--(Marketwire - May 30, 2012) -


1) Algorithmics was sold by Fitch Group on October 20, 2011 and removed from the scope of consolidation on the same date. The net gain on the sale, in the amount of EUR139.4 million, is reported in the consolidated income statement under "Net profit from discontinued operations". Fimalac's share of the gain - based on its 60% interest in Fitch Group at the time of the transaction - amounts to EUR85.8 million and is included in Group profit for the first half of fiscal 2012.

2) On April 11, 2012, Fimalac sold a further 10% of Fitch Group to Hearst, realizing a net gain of EUR81.9 million that will be included in profit for the second half of the fiscal year. Fimalac's remaining 50% interest in Fitch Group will be accounted for by the equity method as from the transaction date. Fitch Group's net profit is reported on a single line of the interim consolidated income statement, in the amount of EUR54.3 million for the first half of fiscal 2012 versus EUR47.9 million for the year-earlier period.

3) The Group's other significant equity interest, consisting of the 40% stake in Groupe Lucien Barrière acquired in March 2011 by Fimalac Développement, is also accounted for by the equity method. This company's business is highly seasonal and it earns most of its profits in the summer months, starting in April. As a reminder, Groupe Lucien Barrière's net profit (Group share for 100%) amounted to EUR28.4 million for the fiscal year 2011.

4) For the reasons explained above, there are now only two main fully consolidated subsidiaries, 80%-owned North Colonnade (owner of the London office building) and Vega (entertainment venue operator) owned through Fimalac Développement.


        (in EUR millions)    First-half fiscal 2011  First-half fiscal 2012

Net profit from fully
 consolidated companies:

Operating result                            (5.7)                   (1.9)

Financial result                             4.3                    (4.8)

Income tax expense                          (2.2)                   (6.6)

Share of profit of associates                0.2                     0.2

Fitch Group net profit                      47.9                    54.3

Net (loss)/profit from                      (2.6)                  139.4
 discontinued operations

 Total net profit                           41.9                   180.6

 Minority interests                        (18.8)                  (76.1)


                               +-------------------+ +--------------------+
 Profit attributable to equity |            23.1   | |             104.5  |
  holders of the parent        |                   | |                    |
                               +-------------------+ +--------------------+

Profit attributable to equity holders of the parent amounted to EUR104.5 million in the first half of fiscal 2012 compared with EUR23.1 million for the year earlier period. The sharp increase can be explained by Fitch Group's robust operating performance (recurring operating income of EUR87.9 million) and by the capital gain realized on the sale of Algorithmics (EUR85.8 million for Fimalac's stake).


The table below presents the main earnings indicators for Fitch Ratings, which enjoyed sustained revenue growth during the period and delivered increased operating profit:

   (in EUR millions)   First-half      First-half     % Change    % Change
                       fiscal 2011     fiscal 2012   (reported)  (like-for-

 Revenue                  263.8           286.6        + 8.6%       + 7.0%

 EBITDA (**)               90.3            98.2        + 8.7%       + 8.6%

 Recurring operating       82.5            87.9        + 6.5%       + 6.4%


(*)  Based on a comparable scope of consolidation and at constant exchange
(**) EBITDA: Earnings before interest, taxes, depreciation and


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Source: FIMALAC via Thomson Reuters ONE


Contact Information

  • Jean-Philippe Laval
    Phone: +33 1 47 53 61 81