Elbit Medical Imaging (Nasdaq:EMITF) netted NIS 50 million in the third quarter, compared with losing NIS 50.8 million in the parallel quarter of last year.
For the nine months the investment company, controlled by real-estate tycoon Motti Zisser, netted NIS 77 million, compared with losing NIS 70.5 million in the parallel.
Revenue for the third quarter increased 46% to NIS 159 million.
Most of the company's businesses showed improvement.
Revenue from its hotel business rose to NIS 39 million. Revenue from running shopping centers climbed to NIS 30.8 million, and revenue from medical technologies ¿ MRI and CT assemblies ¿ came to NIS 87.4 million.
For the nine months, revenue grew 30% to NIS 459.2 million, including management fees for shopping centers, which were first consolidated in the fourth quarter of 2000.
The company reported modest financing income of NIS 68,000, compared with financing costs of NIS 5.9 million for the parallel.
For the first nine months, financing income significantly grew to NIS 49.2 million, compared with NIS 8.3 million for the parallel.
Financing income was affected by the eroded value of loans taken in European currencies against the currencies in which EMI's affiliated companies operate, and by revenue generated by dollar-denominated assets of subsidiary Elscint (NYSE:ELT).
Elscint posted NIS 17 million financing income for the third quarter, as a result of the devaluation of the shekel against the dollar.
During the third quarter, the voluntary liquidation of Swiss firm Sonotron, in which subsidiary Elbit Ultrasound had an investment, generated Elbit Medical NIS 52 million capital gains. Another NIS 18 million revenue was generated by canceling the special provisions Elscint made in the past when selling its magnetic resonance imaging (MRI) and computer tomography scanning (CT) business.
Expanding business in eastern Europe
President and CEO Shimon Yitzhaki told TheMarker.com that the third quarter was the company's fourth quarter running of net profit.
By year-end, he said, EMI will own 18 active entertainment and commercial centers in central Europe, up from 10 centers as 2001 began. He said that the centers are expected to generated NIS 200 million revenue in 2002.
During the last month EMI subsidiary Plaza Centers opened a new shopping center in Ruda Slaska, Poland. Another is planned for Cracow, Poland, and three smaller ones in Hungary, Yitzhaki said. Aside from that, during December EMI expects to finalize the acquisition of three Hungarian shopping malls from the Ofer brothers.
Revenue from hotel business grew in real terms, Yitzhaki said. Occupancy in Romanian and Dutch hotels did not change, but in London occupancy in the third quarter dropped to 73%, from 79% in the parallel. The erosion is less than expected given the outbreak of hoof and mouth disease in Britain and the September 11 attacks on the U.S.
Med-tech assemblies and sub-systems continued to contribute 50% to 60% of EMI's revenues, Yitzhaki said. EMI had expected a 10% increase this year, which did not happen.