Debt settlement gives IDB NIS 1.7b Q2 profit

IDB Holding Corp. Ltd. (TASE:IDBH), controlled by Moti Ben-Moshe and Eduardo Elsztain, released its second quarter and first half financials yesterday evening.

IDB posted a profit of NIS 1.97 billion in the first half of 2014, compared with a profit of NIS 22 million in the corresponding period of 2013. In the second quarter, IDB posted a profit of NIS 1.7 billion, which compares with a loss of NIS 108 million in the corresponding quarter. The second quarter results include a gain of NIS 1.87 billion as a result of the completion of the debt arrangement in the group, without which IDB would have posted a loss of NIS 170 million.

IDB's revenue totaled NIS 9.15 billion in the first half of 2014, compared with NIS 10.85 billion in the first half of 2013, representing a 16% decline. Second quarter revenue fell 34%, to NIS 3.46 billion.

Subsidiary IDB Development posted a loss of NIS 73 million in the first half of 2014, which compares with a profit of NIS 106 million in the first half of 2013. The loss in the second quarter was NIS 365 million, compared with a loss of NIS 53 million in the corresponding quarter. A going concern warning is appended to IDB Developments financial statements.

Published by Globes [online], Israel business news - www.globes-online.com - on September 1, 2014