ECONOMY

Ellaktor reports decline in construction, rise in profit

ellaktor-reports-decline-in-construction-rise-in-profit

Athens-listed group Ellaktor had fewer projects under way in the first half of the year, but recorded higher operating profits that saw it swing to net earnings of 5.7 million euros against losses of 31 million in the first half of 2018.

The smaller share of the construction branch in the group’s revenue allowed for the increase of Ellaktor’s profit margin thanks to the greater contribution by other, more profitable activities, such as concessions and renewable energy sources.

Turnover declined 24 percent to 705 million euros from 922.3 million a year earlier, but operating profits (EBITDA) soared 36.2 percent from 82.4 million euros last year to 112.2 million.

The company’s management said that the construction sector showed a drop in turnover as very few projects were auctioned, while there have been delays in a series of new contracts where subsidiary Aktor has been the winning bidder. These add up to over 1 billion euros.