LONDON (Alliance News) - Shopping and entertainment centers developer Plaza Centers NV said Thursday its losses widened in the first half of the year, as it was hit by higher property impairment charges and finance costs.
The Central and Eastern Europe-focused firm - which is currently undergoing a debt restructuring - said its pretax loss widened to EUR98.7 million in the six months to June 30 from EUR81.3 million in the first half of 2013.
Plaza Centers said it booked a EUR69.7 million impairment of trading properties, finance costs and restructuring costs in the first half, compared with EUR60.9 million last year.
In addition, net finance costs came in at EUR27.3 million, compared with only EUR9.0 million last year.
Plaza Centers was hit hard by the economic downturn, a corresponding reduction of transactions in property investment markets, and a dearth of traditional bank financing.
The company said Thursday that rental income and revenue from entertainment centres both fell in the second quarter ended June 30, bringing in a combined revenue of EUR6.2 million, compared with EUR6.8 million in the same quarter last year.
Plaza Centers shares were untraded Thursday at 8.75 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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Plaza (PLAZ)