On Monday, Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) reported NIS 490 million revenue in 2013, down from NIS 629 million revenue in 2012, and a net loss of NIS 1.5 billion.
Elbit Imaging also notified Mordechay Zisser that he will not continue as president and CEO, three months after the company's huge debt settlement, in which he lost control of the company. The company added that its board of directors is seeking a new CEO and that it is in preliminary discussions to hire Zisser as a consultant.
Elbit Imaging attributed the drop in revenue to reduced income from commercial centers and the sale of commercial centers and from hotel operations and their management, and to the lack of profits from the sale of properties. At the same time, expenses rose to NIS 2 billion in 2013 from NIS 1.2 billion in 2012, because of higher losses by subsidiaries, higher financing expenses, and NIS 615 million in write-downs on the real estate inventory and down payments on real estate inventory held by subsidiary Plaza Centers NV (LSE:PLAZWSE:WLZ).
The net loss widened to NIS 1.57 billion in 2013, of which NIS 1.16 billion is attributed to equity shareholders and NIS 409 million to minority shareholders, from NIS 484 million in 2012.
"Elbit Imaging is embarking on a new road, following the completion of the debt settlement and the appointment of a new board of directors. The company has quality assets worldwide and quality companies in its portfolio, which will support the company's recovery for the good of its shareholders, debt holders, managers, and employees," said Elbit Imaging chairman Ron Hadassi.
Published by Globes [online], Israel business news - www.globes-online.com - on April 1, 2014
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