SOURCE: FIMALAC

December 04, 2006 14:13 ET

UPDATE: FIMALAC : Fiscal year ended September 30, 2006

PARIS -- (MARKET WIRE) -- December 4, 2006 -- ATTRIBUTABLE CONSOLIDATED PROFIT FOR THE PERIOD: EUR 491.7 million

Following the decision of the March 16, 2006 General Shareholders' Meeting to change the Company's year-end to September 30, fiscal 2006 covers a period of nine months and comparisons are therefore based on the first nine months of 2005.

REVENUE: EUR 457.4 million, up 17.2%*

+------------------+--------------+-----------+
|(In EURO millions)|Pro forma 2005|Fiscal 2006|
+------------------+--------------+-----------+
|Fitch Ratings     |         331.4|      388.8|
+------------------+--------------+-----------+
|Algorithmics      |          51.0|       68.3|
+------------------+--------------+-----------+
|Fitch Group       |         382.4|      457.1|
+------------------+--------------+-----------+
|Parent company    |           0.3|        0.3|
+------------------+--------------+-----------+
|Total             |         382.7|      457.4|
+------------------+--------------+-----------+
+------------------+--------------+-----------+
Fitch Ratings reported strong business growth across all main segments of the rating market and all geographic regions. Revenue for fiscal 2006 (corresponding to the nine months ended September 30) rose by 17.3% on a reported basis and 15.8% like-for-like over the same period of 2005.

Algorithmics, which was acquired in late January 2005, enjoyed very strong demand for its financial risk management services. Revenue was up by 33.9% on a reported basis and 26.7% like-for-like.

Fimalac Group consolidated revenue - corresponding almost entirely to Fitch Group revenue - grew 19.5% on a reported basis and 17.2% like-for-like.

RECURRING OPERATING PROFIT: EUR 80.0 million, up 24.7%*

+------------------+--------------+-----------+
|(In EURO millions)|Pro forma 2005|Fiscal 2006|
+------------------+--------------+-----------+
|Fitch Ratings     |          96.5|      111.7|
+------------------+--------------+-----------+
|Algorithmics      |        (20.7)|     (26.1)|
+------------------+--------------+-----------+
|Fitch Group       |          75.8|       85.6|
+------------------+--------------+-----------+
|Parent company    |        (10.3)|      (5.6)|
+------------------+--------------+-----------+
|Total             |          65.5|       80.0|
+------------------+--------------+-----------+
+------------------+--------------+-----------+
Fitch Ratings' recurring operating profit for fiscal 2006 (corresponding to the nine months ended September 30) was up by 15.8% on a reported basis and by 14.0% like-for-like over the same period of 2005.

The operating loss reported by Algorithmics was in line with the budget and reflects the sharp increase in employee numbers to support business growth. It also includes the amortization of intangible assets recognized at the time of the business combination, in the amount of EUR 11.7 million for the nine months of fiscal 2006 versus EUR 9.2 million in the year-earlier period.

Fitch Group recurring operating profit rose by a strong 12.9% on a reported basis and 15.2% like-for-like.

The results of Fimalac's parent company also improved, lifting growth in consolidated recurring operating profit to 22.1% on a reported basis and 24.7% like-for-like.

ATTRIBUTABLE PROFIT FOR THE PERIOD: EUR 491.7 million

Profit attributable to equity holders of the parent for the nine months of fiscal 2006 came to EUR 491.7 million versus EUR 18.8 million for the same period of 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 fiscal 2006.

DIVIDEND FOR FISCAL 2006 (9 MONTHS): EUR 1.40 PER SHARE

At the Annual Shareholders' Meeting on February 13, 2007, the Board of Directors will recommend paying a dividend of EUR 1.40 per share, compared with EUR 1.25 per share for 2005. The dividend will be payable as from February 15, 2007.

*Based on a comparable scope of consolidation and constant exchange rates.

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