Greece’s Centric multimedia: Turnover increased by 55.1% in the 9th month

The financial figures showed an improvement in almost all of Centric’s main categories in the nine months of 2022, while its performance in the third quarter is significantly more improved.

In particular, the listed company’s turnover increased by 55.1%, reaching 4.5 million euros in the nine months from 2.92 million euros in the corresponding period of 2021. Profits before taxes, interest and depreciation amounted to 600,165.74 euros from 122,590.76 euros. EBIT amounted to 52,891.17 euros from losses of 381,726.94 euros, while profits before taxes shrank to 268,631.61 euros from 2,251,710.81 euros.

Statement on Financial Position of the Group

The amount of the Group’s portfolio in immediately liquidable securities in 9.2022 amounted to 18.9 million euros compared to 20.7 million euros on 30.6.2022.
The cash reserves of the Group in 9.2022 marked a significant increase of 41.7% compared to those on 30.06.2022 and amounted to 4.8 million euros.
The amount of the Group’s equity did not materially change in 09.2022 compared to that on 06.30.2022.
The balance of loan obligations in 9.2022 amounted to 5.8 million euros compared to 5.2 million euros which was the balance on 30.06.2022.

Based on the above data, it appears that FY 2022 is progressing very satisfactorily and the consolidated turnover increased during the first nine months of the financial year by 54.9% compared to the corresponding period of FY 2021. Almost all of the individual activities of the Group saw an increase. Peak activity was the third quarter of the fiscal year, which was significantly boosted by the Group’s activities that have increased seasonal demand and are linked to tourism. The turnover of real estate exploitation activity also showed a large increase. The Group’s operating result was also significantly improved, whose positive result in the third quarter exceeded the losses of the first half. Correspondingly, the result of the investment and financial operation was improved, contributing to the positive formation of the Group’s pre-tax profits for the first nine months of the year. In relation to the elements of the Group’s financial position, its strong capital base is still evident, which is characterized by the presence of significant cash reserves and the invested portfolio of the parent company in negotiable securities.

Update regarding rising energy costs, the war conflict in Ukraine and the broader macroeconomic environment in relation to the development of the Group’s activities
As it has been mentioned in the annual financial report of the year 2021, the activities of the Group’s subsidiaries cannot be characterized as energy-intensive with the possible exception of the activity of renting tourist pleasure boats where the customer covers the entire cost of fuel. Consequently, the Group’s direct exposure to increased energy costs is quite limited and does not constitute a directly and directly connected significant burden on the cost of providing the Group’s services and products.

It is, of course, reasonable that the increase in the cost of energy and the resulting increase in inflation may negatively affect consumer demand in general and in particular the sectors that concern the Group. To date, however, the effect on the formation of demand for the Group’s products and services seems to be insignificant.

Accordingly, at a more general level the armed conflict in Ukraine constitutes a condition of significant uncertainty that extends over a wider geographical area and may adversely affect economic activity in general. In particular, the activities of on-board entertainment, the exploitation of tourist properties and that of the rental of tourist boats, are directly related to demand coming from abroad and are therefore more exposed to the current environment of political instability. However, it should be mentioned that to date any effect has been negligible, as well as that the customers coming from Russia have been very limited in the clientele of the Group’s subsidiaries.

With reference to the wider macroeconomic environment, the risks resulting from increased inflation and the rise in interest rates are undoubtedly present but are related, in this case, to the general state of economic activity and not to the more specific operational cases of the Group’s financial situation. The Group maintains a relatively low balance of bank borrowings. A further increase in interest rates by, for example, 2%, will mean a burden on the Group’s annual profitability for an amount less than € 120 thousand. More important may be the effect of an environment of increased interest rates on the evolution of the price of the securities that make up the investment portfolio of the parent company Company. To date the adverse effect on the valuation of the invested portfolio is quite limited.

Summarizing all of the above, we can say that the impact of the mentioned risks on the Group’s activity and results is relatively small to date. Any negative impact concerns the general economic environment and not the specific operating conditions of the Group and its subsidiaries.