Prime Holding Investments First Half Results Based on 77% Decrease in Consolidated Earnings

Rana Mamdouh

The board of directors of the holding company Prime Holding Financial held at its meeting of August 4, 2019 the results of the consolidated and unaudited financial statements for the first half of the current fiscal year.

The company said in a statement today that it had achieved consolidated net profit in the six-month period ending June 2019 for an amount of 4,468 million pounds, compared to 19,624 million pounds compared to the same period , down 77%.

During the same period, Prime Holding's revenues dropped to 34.764 million lire against 51 417 million lire in the corresponding period.

Total profit fell to 7,102 million Egyptian pounds in the first six months of this year, compared with 23,386 million Egyptian pounds for the corresponding period.

The basic share per share for the same period was 0.064 pounds against 0.28 pounds for the same period.

In terms of independent operations, the company's financial statements showed a net profit of £ 272,580 thousand in the first half of this year, compared to £ 6.425 million for the corresponding period.

Revenues for the same period fell to 10.076 million pounds, against 13.780 million pounds for the corresponding period.

Total profit fell to 3,128 million pounds in the six months ended June 2019, compared with 7.709 million pounds in the same period.

The basic share per share for the same period was 0.004 EGP compared to 0.092 EGP for the same period.

Prime attributed its decline in earnings to a decline in trading income from the securities portfolio, which rose from 3.077 million pounds to 1.320 million pounds, in addition to the one-time yield in 2018 generated by the liquidation of Prime Qatar for a amount of 1.851 million pounds.

The increase in activity and worker costs from 19.950 million pounds to 23.688 million pounds, related to inflation rates and workers' and social security benefits, contributed to the decline.

Added to this is the fact that the management of securities and investment funds did not generate a good performance fee, compared to £ 11.947 million in the comparative period, due to the Declining investments in the Financial Markets Index over the last 12 months.