Financial Data and Key Metrics Changes - The net result for the year is a positive ARS 4.9 billion compared to a loss of ARS 8.4 billion last year, with a small negative net result attributable to the controlling company of ARS 1.4 billion compared to ARS 8.1 billion last year [4] - Adjusted EBITDA improved by 16% year-over-year, reaching ARS 11.7 billion [5] - The company recognized a gain of ARS 4.8 billion against a loss of ARS 8.3 billion last year, with significant changes in fair value and deferred tax impacting results [26][27] Business Line Data and Key Metrics Changes - In the Argentina Business Center, shopping mall same-store sales increased by 5.6% in real terms compared to the same quarter last year, with occupancy stable at 95% [7][8] - The office segment remains strong with rents stable at approximately $27 per square meter per month and occupancy levels in premium buildings at 97.1% [8] - Hotel sales decreased by 29.2% year-over-year, primarily due to the rebranding of the Sheraton hotel and the absence of significant events that occurred in the previous year [12][29] Market Data and Key Metrics Changes - The Argentina market experienced a real devaluation of 13.5%, impacting dollar-denominated debt [32] - In Israel, the real estate segment showed a 26.9% increase, attributed to cost reductions and operational efficiencies [31] Company Strategy and Development Direction - The company is focusing on selling non-core assets and maximizing value through strategic disposals, including stakes in tourism and real estate assets [38][45] - A new CEO has been appointed in Israel, indicating a shift in management strategy to enhance operational performance [19] Management Comments on Operating Environment and Future Outlook - Management highlighted the recovery in consumption and the positive impact of government programs on sales, although revenue recovery has not fully materialized [7][8] - The company is actively working on refinancing debt and managing cash flow to meet upcoming obligations [24][35] Other Important Information - Banco Hipotecario incurred losses of ARS 923 million due to impairments, reflecting broader challenges in the banking sector [15] - The company is in the process of selling Condor Hospitality Trust, with estimated proceeds of around $29 million expected [15] Q&A Session Summary Question: What is the refinancing strategy heading into December 2022? - Management indicated that they are focusing on selling assets under IDB to generate funds for debt repayment, including stakes in tourism and real estate [38] Question: Is there a plan to fund Israel via any Argentine subsidiary? - Currently, the only commitment in Israel is a signed agreement for 210 million Shekels, with a remaining commitment of $40 million [40][42]
IRSA(IRS) - 2020 Q2 - Earnings Call Transcript