IRSA(US:IRS)2019-09-10 18:02Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of ARS 19.7 billion, representing a 13% increase compared to the previous year [4] - The net loss for the company was ARS 26.8 billion, a significant decline from a gain of ARS 23 billion in the previous year [6][36] - The fair value of investment properties in Argentina significantly impacted the financial results, leading to a loss of ARS 27.1 billion [37] Business Line Data and Key Metrics Changes - The Argentinian Business Center's EBITDA was ARS 5.6 billion, a decrease of 2.4% year-over-year, while the Israeli segment achieved ARS 14 billion, an 18.6% increase [5] - The shopping centers in Argentina experienced a real terms reduction in sales of 13.5% compared to last year, while nominal terms showed a 36% increase [10] - The office segment saw an increase in total GLA from 83,000 square meters to 115,000 square meters, a 38% increase, driven by the Zetta Building [11] Market Data and Key Metrics Changes - The total GLA for shopping centers is now 332,000 square meters with an occupancy rate of 95%, a slight drop from the previous year [9] - The hotel segment reported a drop in occupancy from 70% to 65%, but room rates increased from $191 to $197, leading to a significant increase in EBITDA from ARS 71 million to ARS 588 million [15] - The Israeli business segment showed a 39% increase in revenue recognition due to IFRS implementation in the residential business [6] Company Strategy and Development Direction - The company is focusing on real estate globally, with plans to continue developing office buildings in both Israel and Argentina [50] - The company is addressing regulatory challenges related to concentration laws by selling shares to comply with legal requirements [24][30] - Future developments include the 200 Della Paolera building, expected to open in Q4 of fiscal year 2020, with an estimated investment of $90 million [14] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging operating environment in Argentina due to high inflation and reduced consumption, which has affected shopping mall performance [39] - The competitive environment in the Israeli telecommunications sector remains tough, with companies performing lower than the previous year [41] - Management expressed optimism about the future, highlighting improvements in operational performance and the quality of the real estate portfolio [50] Other Important Information - The company acquired a 20% stake in Hoteles Argentinos, which now operates independently under the name Libertador Hotel [16] - The company is in the process of appointing a new CEO for IDB and DIC, with promising candidates being considered [26] - The company has established a credit line allowing IRSA to lend up to $180 million to IRCP [47] Q&A Session Summary Question: What are the expectations for the upcoming fiscal year? - Management indicated that the company expects to continue its focus on real estate globally and improve operational activities [50] Question: How is the company addressing the challenges in the Argentinian market? - Management acknowledged the high inflation and reduced consumption but remains optimistic about the portfolio's quality and future developments [50] Question: What is the status of the new CEO appointment? - The company is close to finalizing the appointment of a new CEO, with several strong candidates under consideration [26]