May 27 (SeeNews) - Financial and insurance group Eurohold Bulgaria [BUL:4EH] said on Monday that it turned to a consolidated net profit after minority interest of 4.5 million levs ($2.6 million/2.3 million euro) in the first quarter, compared to a net loss of 243,000 levs a year earlier.
Eurohold Bulgaria's profit after taxes, including income attributable to other shareholders in the group's subsidiaries, increased to 5.6 million levs in January-March from 804,000 levs in the comparable period of 2018.
The group's operating profit edged down to 1.6 million levs in the review period from 1.7 million levs, as expenses grew quicker than revenue.
Operating revenue added 31.2% year-on-year to 381.1 million levs, while operating expenses rose 37.7% to 379.5 million levs.
The group's increased profitability resulted from a drop in financial expenses, which amounted to 11.5 million levs in the first three months of 2019, down from 16.0 million levs in the corresponding period of last year. Financial revenue edged up to 15.6 million levs from 15.2 million levs.
The insurance segment contributed the largest portion of the group's revenue and profit. The segment's revenue grew to 333.2 million levs in the period under review from 237.1 million levs a year earlier. Eurohold Bulgaria booked a profit of 9.9 million levs from insurance activities in January-March.
Eurohold Bulgaria is currently seeking approval for a capital increase prospectus from the Financial Supervision Commission. The company is planning to offer 79,010,240 preferred shares, seeking to raise up to 154 million levs.
Earlier this year, Eurohold Bulgaria entered into exclusive talks with Czech CEZ over the acquisition of the energy group's assets in Bulgaria. The planned acquisition is part of Eurohold's strategy to shift to segments with higher growth potential.
Eurohold Bulgaria's portfolio includes companies active in financial services, leasing, insurance and car sales.
(1 euro = 1.95583 levs)