TEL AVIV, Israel, May 29 /PRNewswire-FirstCall/ -- Elbit Imaging Ltd. ("EI" or the "Company") today announced its results for the first quarter of 2008.
Loss for the first quarter of 2008 amounted to NIS 3.5 million (approximately US$ 1.0 million) of which loss of NIS 27.3 million (approximately US$ 7.7 million) is attributable to the equity holders of the Company, while profit of NIS 23.8 million (approximately US$ 6.7 million) is attributable to minority interest. The first quarter results for 2008 are compared with loss of NIS 34.0 million (approximately US$ 9.6 million) in the corresponding period of 2007 of which NIS 40.6 million (approximately US$ 11.4 million) loss is attributable to the equity holders of the Company and profit of NIS 6.7 million (approximately US$ 1.9 million) is attributable to minority interest.
Profit for the first quarter of 2008 excluding stock-base compensation expenses (Non GAAP measure) amounted to NIS 8.8 million (approximately US$ 2.5 million) compared with loss of NIS 17.8 million (approximately US$ 5 million) in the corresponding period of 2007.
Mr. Shimon Yitzhaki, President, commented: "Inasmuch as the core business of the Company is the initiation and development of investments and projects in the real estate sector, our results are directly affected by the realization of real estate asset during the relevant quarter. Accordingly, as we have seen in previous years, the Company presents high profits in a quarter in which real estate assets are realized, whilst in quarters where there are no asset sales, it presents lower profits. The Company's long term results presented high level of profits and therefore the Company's results must be measured over a long period of time and not necessarily over a specific quarter."
Mr. Yitzhaki also noted: "The financial strength of the Company was further reinforced by the trust placed in it by institutional financial bodies which enabled our subsidiary Plaza Centers NV to raise additional capital by expanding it's notes series in Israel. The significant cash balances of our Company, which grew as a result of the business activities of the Company, allow the Company to meet its long-term business plans. In addition, it must be noted that we have accelerated our activities both in terms of acquisitions in Europe, CEE and in India."
Mr. Yitzhaki further commented: "Recently, we have announced that our subsidiary company, Plaza Centers, obtained an exclusive license to operate a casino at Obuda Dream Island -- first of its kind in Europe enabling us to commence the development operations of this mega-project in it's prime location to become a leading leisure and entertainment resort attracting visitors from across Continental Europe and overseas."
About Elbit Imaging Ltd.
Elbit Imaging Ltd. ("EI") is a subsidiary of Europe Israel (M.M.S.) Ltd. EI's activities are divided into the following principal fields: (i) Initiation, construction, operation, management and sale of shopping and entertainment centers in Israel, Central and Eastern Europe and India; (ii) Hotels ownership, primarily in major European cities, as well as operation, management and sale of same through its subsidiary, Elscint Ltd.; (iii) Investments in the research and development, production and marketing of magnetic resonance imaging guided focused ultrasound treatment equipment, through its subsidiary, InSightec Ltd.; and (iv) Other activities consisting of the distribution and marketing of women's fashion and accessories through our wholly-owned Israeli subsidiary, Elbit Trade & Retail Ltd., and venture-capital investments.
Any forward looking statements with respect to EI's business, financial condition and results of operations included in this release are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward looking statements, including, but not limited to, unexpected results of litigation proceedings, ability to find suitable locations, receipt of approvals and permits for zoning and construction, delays in construction, dependency on partners in the hotels business, competition, risks relating to operations in Eastern Europe and Asia (including India) and risks relating to our image guided treatment, economic conditions, as well as certain other risk factors which are detailed from time to time in EI's filings with the Securities and Exchange Commission including, without limitation, Annual Report on Form 20-F for the fiscal year ended December 31, 2006, filed with the Securities and Exchange Commission on July 3, 2007.
CONTACT: Company Contact, Shimon Yitzhaki, President, Elbit Imaging Ltd.,
+972-3-608-6000, firstname.lastname@example.org; or Investor Contact, Leslie
Wolf-Creutzfeldt, of Grayling Global for Elbit Imaging Ltd.,
+1-646-284-9472, email@example.com; or Dudi Machluf, CFO, Elbit
Imaging Ltd., +972-3-608-6024, firstname.lastname@example.org