The Company has completed the first 6 months of 2019 with strong results in sales revenues and gross profit. The sales revenues for the first half-year of 2019 were 22.5 million euros, which is an increase of 49% compared to the 15.1 million euros during the same period last year. The sales revenues of the 2nd quarter were 12 million euros compared to 8.3 million euros during the comparable period of 2018.
The increase in sales revenues during the first 6 months of 2019 was strongly influenced by the active sales of Šaltiniu Namai Attico five new houses in Vilnius, Kristina Houses development in Tallinn, River Breeze Residence in Riga, but also rental revenues from T1, which was opened at the end of 2018. Our revenues from the sales of the real estate depend on the completion of the residential developments, as the revenues are recorded at the moment final notary deeds of sale are concluded and properties handed over to the buyers. Consequently, to the active sales, the operating profit for the first half-year of 2019 was 5.1 million euros compared to 4.4 million euros during the same period in 2018. During the second quarter of 2019, the operating profit was 2.5 million euros and 3.7 million euros in 2018. The 34% decrease was influenced by extraordinary gain from increase of value of investment property in amount of 1.9 million euros during the 2nd quarter of 2018. Otherwise positive results were influenced by 3.5 million euros interest expenses related to T1 project, which in previous periods have been capitalized into cost of investment property. The net result of the first half-year of 2019 was 276 thousand euros loss compared to 2.8 million euros profit during the same period in 2018.
The Company foresees stable growth in revenues and operating results during the upcoming periods, through its operations. In addition, we are exploring opportunities to reduce financial costs by refinancing current debt instruments.
Pro Kapital held the investor webinar this morning to introduce the results for the first 6 months and 2nd quarter of 2019. The recording of the webinar is available here: https://youtu.be/vuO6UUQr9-U
The webinar presentation is attached to this notice.