MFS 9M profit tumble on Greece write-offs

MFS Holdings Pcl (MFS) reported a sharp decline in profitability during the first nine months of 2006 mostly as a result of a huge write-off of investment in associate company MFS Hellas, which is the mother company of Galaxias SA, its Greek venture that was ordered to suspend operations by the Greek authorities.

Total premium income fell to EUR 10.1 mln from EUR 13.16 mln a year a ago in the same period, while net profits from investments was up at EUR 5.4 mln from EUR 1.8 mln previously.

A sharp increase in the lift reserve fund and settlement of contracts, which reached EUR 4.24 mln from EUR 2.99 mln offset a reduction in expenses, which nevertheless were restricted to EUR 13 mln from EUR 14 mln previously.

Following the deduction of CYP 1.35 mln or EUR 2.35 mln for investment in associate company write-off, and the deduction of minority interests, MFS reported net profits for 9M06 of CYP 5.184 or EUR 9.016 compared to net profit of CYP 155.656 or EUR 270.704 in 9M05. EPS were 0.02 cent or 0.03 euro cent.