OREANDA-NEWS. Elbit Imaging Ltd. (TASE:EMITF) (NASDAQ:EMITF) ("Elbit" or the "Company") announced today its results for the first quarter of 2016.

Three months ended March 31, 2016 compared to corresponding period in 2015:

The Company’s loss for the three months period ended March 31, 2016 (“Q1 2016”) amounted to NIS 65 million (US$ 17 million), compared to NIS 130 million in the corresponding period in 2015.

Consolidated revenues and gains for Q1 2016 amounted to NIS 98 million (US$ 26 million) compared to NIS 67 million in the corresponding period in 2015 (“Q1 2015”).

  • Revenues from sale of commercial centers amounted to 47 million in Q1 2016 compared to nil in Q1 2015. Such revenues in Q1 2016 was mainly attributable to the sale of Liberec Plaza commercial centers in Czech Republic by our 44.9% subsidiary, Plaza Centers N.V. ("PC"), and the sale of plots in Romania and Poland by PC.
  • Rental income from commercial centers decreased in Q1 2016 to NIS 19 million (US$ 5 million) compared to NIS 24 million in Q1 2015. The decrease was mainly attributable to (i) decrease in income from Koregaon commercial center which was sold in May 2015 (ii) decreases in revenues from the entertainment parks within the commercial centers (iii) decrease in the same commercial centers rental income.
  • Cost of commercial centers increased in Q1 2016 to NIS 60 million (US$ 16 million) compared to NIS 18 million in Q1 2015. The increase attributable to cost of the commercial centers and the Plots sold during Q1 2016 in the total amount of NIS 47 million compared to nil in Q1 2015 partially offset by decrease in operational expenses of the commercial centers from NIS 18 million in Q1 2015 to NIS 13 million in Q1 2016.
  • Revenues from hotels operation and management in Q1 2016 amounted to NIS 31 million (US$ 8 million) compared to NIS 43 million in Q1 2015. The decrease was mainly attributable to the sale of our hotels in Antwerp, Belgium in June 2015 offset by an increase in the revenue of the Radisson Blu Hotel in Bucharest Romania.
  • Costs and expenses of hotels operation and management decreased in Q1 2016 to NIS 28 million (US$ 7 million) compared to NIS 39 million in Q1 2015. The decrease resulted from the decrease in the revenue as mentioned above.
  • General and administrative expenses amounted to NIS 3 million (US$ 1 million) in Q1 2016 compared to NIS 4 million in Q1 2015. The decrease in mainly attributable to efficiency measures taken by the Company reducing the general and administrative costs in the Company’s headquarters.  
  • Share in losses of associates, net amounted to NIS 11 million (US$ 3 million) in Q1 2016 compared to NIS 14 million in Q1 2015. Such losses were mainly attributable to our share in the losses of our Medical portfolio companies, InSightec Ltd   and Gamida Cell Ltd.
  • Financial expenses, net decreased in Q1 2016 to NIS 59 million (US$ 16 million) compared to NIS 124 million in Q1 2015. The decrease of NIS 65 million is mainly attributable to the following:
    • A decrease in the amount of NIS 90 million (US$ 24 million) in exchange rate losses mainly with respect to PC’s debentures linked to NIS and measured in Euro as a result of devaluation of the EURO against the NIS in 0.9% in Q1 2016 compared to a devaluation of 9.5% in Q1 2015; Offset by:
    • An increase in interest expenses in the amount of NIS 25 million (US$ 7 million) mainly attributable to increase in the PC's interest  due to highly effective interest rates on PC's debentures and an acceleration of  discount amortization offset by a decrease in PC's interest on bank loans due to the sale of commercial centers during 2015.
  • Other expenses, net in Q1 2016 amounted to NIS 1 million (US$ 0.2 million) compared to NIS 2 million in Q1 2015.
  • Loss before tax expenses amounted to NIS 64 million (US$ 17 million) in Q1 2016 compared to NIS 134 million in Q1 2015.
  • Tax expenses amounted to NIS 1 million (US$ 0.4 million) in Q1 2016 compared to of NIS 2 million in Q1 2015.
  • Loss from continuing operations amounted to NIS 65 million (US$ 17 million) in Q1 2016 compared to NIS 137 million in Q1 2015.
  • Profit from discontinued operations, net, amounted to nil Q1 2016 compared to NIS 7 million in Q1 2015. The profit in Q1 2015 was mainly attributed to the Company’s fashion retail operation which was sold during Q1 2015, and accordingly reclassified as discontinued operations.
  • Loss for Q1 2016 amounted to NIS 65 million (US$ 17 million) (out of which NIS 45 million is attributed to the equity holders of the Company) compared to  NIS 130 million in the corresponding period in 2015 (out of which NIS 83 million is attributed to the equity holders of the Company).
  • Shareholders' equity/Deficiency as of March 31, 2016 amounted to NIS 242 million (US$ 64 million) (out of which Shareholders' deficiency in the amount of NIS 23 million (US$ 6 million) is attributed to the controlling interest). The decrease in the shareholder’s equity results mainly from the loss for the period.

Elbit Imaging Ltd. operates in the following principal fields of business: (i) Commercial centers - initiation, construction, and sale of commercial centers and other mixed-use property projects, predominantly in the retail sector, located in Central and Eastern Europe. In certain circumstances and depending on market conditions, the Group operates and manages commercial centers prior to their sale. (ii)  Hotel - operation and management of the Radisson hotel Complex in Bucharest, Romania. (iii) Medical industries and devices - (a) research and development, production and marketing of magnetic resonance imaging guided focused ultrasound treatment equipment, and (b) development of stem cell population expansion technologies and stem cell therapy products for transplantation and regenerative medicine. (iv) Plots in India - plots designated for sale initially designated to residential projects.