Money Buzz! Europa

Category: Business

  • Pirelli to screen employees in Italy for Covid-19

    Pirelli to screen employees in Italy for Covid-19

    Pirelli will offer the group’s roughly 3.100 employees in Italy, the possibility of undergoing serological screening for Covid-19 aimed at further strengthening the safe restart of activities after the lockdown.

    Pirelli will offer rapid testing, through needle prick to the fingertip, and, should the result call for it, conduct at the same time venous exams and swabs as well.

    The serological screening will be carried out with the maximum level of safety inside company areas with the support of qualified health workers.

    The scheme, employee participation in which will be voluntary, is one of a number measures Pirelli has adopted for the restart of activities aimed at protecting the health of all employees, which is the company’s priority.

  • TUI hotel brands resume operations in Austria

    TUI hotel brands resume operations in Austria

    • Hotels will welcome their first guests in June;
    • TUI Blue Montafon to open in July, earlier than planned.

    In Austria, the hotels of the TUI brands are ready for a rapid resumption of operations in summer. In a first step, the hotels will open for guests from Austria, but as soon as the authorities give the green light for cross-border travel, they will again welcome international holidaymakers from all over Europe.

    TUI is present in Austria with three hotels of the lifestyle brand TUI Blue and three Robinson Clubs.

    New TUI Blue Montafon hotel opens on July 24

    Among the six hotels there is the new TUI Blue Montafon, which will open on 24 July.

    The new lifestyle hotel in the area of Schruns-Tschagguns appeals to activity-oriented holidaymakers and mountain fans.

    TUI Blue Schladming hotel, the first to open

    Earlier, on the 10th of June TUI Blue Schladming will be the first hotel to reopen. The two Robinson Clubs Amadé (19 June) and Landskron (20 June) will follow. Also in June, the TUI Blue Fieberbrunn (26 June) and the Robinson Club Schlanitzen Alm (27 June) will open again for their guests.

    The new TUI Blue Montafon will follow in July.

  • US commercial and industrial loans at an all-time high since 1973

    US commercial and industrial loans at an all-time high since 1973

    Data gathered by Learnbonds.com indicates that the United States commercial and Industrial loans hit $3.04 trillion in the third week of May.

    According to the data, this is the highest amount since January 1973 when the figure was $134.04 billion.

    A notable spike in the loans by all the commercial loans was recorded in the second week of March 2020 when the amount stood at $2.38 trillion. Eight weeks from this period, the loans grew by 27.86% to the May figure.

    Between the first week of this year and May, the loan amount has grown by 29.6% after standing at $2.35 trillion in January. The lowest amount in commercial loans was in the first week of 1973 at $134.04 billion. The loan amount first hit the one trillion mark in the last week of September 2005 when the figure stood at $1.001 trillion.

    Before the current high of $3.04 trillion, the last time commercial loans were notably high was in the fourth week of November 2008 when the number stood at $1.57 trillion. Another high was in the third week of January 2001 at $1.09 trillion.

    Based on the data, it clear that spike was recorded when the Coronavirus pandemic began impacting the economy. According to our research report:

    Based on the monthly percentage change in commercial loans, March and April this record the highest rate at 169.3%. Before the 2020 spike, the last highest rate was between December 1951 and January 1952 at 68.3%. Another notable high was in February 1973, April 1974, October 2008 at 47.5%, 43.7%, and 41.8% respectively.

    On the other hand, the lowest percentage difference was recorded between June and July 2009 at 33.7%. Another notable low was in November and December 1953 at 34.3%.

  • Austria: Decline in turnover for service enterprises (-5.5%) and trade (-4.1%)

    Austria: Decline in turnover for service enterprises (-5.5%) and trade (-4.1%)

    In the first quarter of 2020, the turnover of Austrian service enterprises decreased by 5.5% compared to the same quarter of the previous year, as Statistics Austria reports.

    The main reason for this decline is the shutdown of a large part of the enterprises as part of the measures to contain the corona pandemic.

    In the first quarter of 2020, Austrian retailers recorded a nominal sales decline of 4.1%, resulting in a 4.2% decrease in sales volume compared to the same quarter of the previous year.

    The smallest losses (-0.9% in nominal terms or -1.9% in real terms) were recorded in the retail trade, followed by wholesale trade with a decrease in sales volume of 2.5%. Adjusted for inflation, this represents a decrease of 1.4%.

    The motor trade recorded a sharp decline in sales compared to the first quarter of 2019, with -16.4% in nominal terms and -18.3% in real terms, in line with the available registration figures.

  • 266 international companies relocated to Vienna in 2019

    266 international companies relocated to Vienna in 2019

    In 2019, 266 international companies relocated to Vienna, a record number for the eighth time in a row, latest City Hall press release shows.

    Vienna’s mayor Michael Ludwig knows the reasons for this: “Stability and security are the factors with which our city is internationally associated despite all the economic challenges posed by the Corona crisis – a significant asset, especially in times of crisis. This has a positive impact on the demand of international companies.”

    “The new companies put 731 million euros in investments in Vienna in 2019 and created 1,972 new jobs,” sums up Economic City Councilor Peter Hanke.

    In 2018, the rate was EUR 231 million. The investment volume was thus more than tripled.

    Germany, the biggest investor

    Behind Germany with 61 projects, the United States came second in the list of the ten most important countries of origin with 25 companies located, doubling the figure by two and a half times compared to 2018. Switzerland took third place.

    Two examples from the banking sector show how diverse is the range of international companies moving to Vienna.

    In 2019, the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, opened a branch in Vienna, as did the start-up N26, which claims to become the world’s largest digital bank.

  • Pandemic hit Austrian Airlines ”with full force” in the first quarter

    Pandemic hit Austrian Airlines ”with full force” in the first quarter

    • Austrian Airlines revenue decline of 24% in the first quarter of 2020;
    • Strong year-on-year drop in passenger volume of 27%.

    ”The pandemic hit our company with full force”, states Austrian Airlines CFO Wolfgang Jani, commenting on developments.

    ”This blow is also reflected in our earnings. We will likely see the full effects in the coming months. However, it is already obvious today that it will take years for us to weather the crisis”, he adds.

    Austrian Airlines fleet has been grounded since March 19, 2020 as a consequence of the pandemic. Beforehand, the flight schedule for China and later for Europe had to be drastically slashed due to the spread of the coronavirus.

    Even though the far greater impact will be felt in the second quarter of this year, the corona-related development is also reflected in the financial figures for the first quarter: Revenue and passenger volume of the airline were both down by about one-quarter compared to the prior-year period. In turn, this led to adjusted earnings before interest and taxes (adjusted EBIT) of minus EUR 136 million in the first quarter of 2020.

    Austrian Airlines carried 1.9 million passengers in the first three months

    Austrian Airlines carried 1.9 million passengers in the first three months of the current year, comprising a decline of 27 percent from the comparable period of 2019. The flight offering in available seat kilometers had to be reduced by 19 percent to 4.5 billion.

    Capacity utilization (passenger load factor) fell to 68.2 percent due to the crisis. Many passengers actually did not travel despite valid flight bookings.

    The regularity of operation, an indicator with little significance at the present time in light of the coronavirus crisis, was down to 95.2 percent in the first quarter of 2020. The punctuality rate on departure could be improved to 88.1 percent, whereas the punctuality rate on arrival rose to 88.6 percent.

    Austrian Airlines operated a total of 22.727 flights during this period, or 253 flights per day.

    First-quarter revenue fell to EUR 287 million

    First-quarter revenue fell by 24 percent to EUR 287 million, and total operating revenue also decreased by 24 percent to EUR 304 million.

    Operating expenditures were down twelve percent to EUR 440 million. Earnings expressed as adjusted EBIT (adjusted earnings before interest and taxes) equaled minus EUR 136 million, comprising a decline of 37 percent from the previous year (Q1 2019: minus EUR 99 million). EBIT plummeted to minus EUR 197 million. The deviation between the adjusted EBIT and EBIT can be attributed to a revaluation of the aircraft fleet. (Refer to the chart on the last page for details.)

    The total staff of Austrian Airlines amounted to 6.943 employees as at the balance sheet date of March 31, 2020 (March 31, 2019: 7.061 employees).

  • TBI Bank, record high net profit of nearly EUR 23 million in 2019

    TBI Bank, record high net profit of nearly EUR 23 million in 2019

    TBI Bank’s net profit increased by 58% to a company record high of EUR 22.9 million, the Bank’s audited consolidated results for 2019 show.

    The Bank had above the market average growth in the most business areas, assets increased by 17% and reached EUR 465 million at year’s end.

    In 2019 TBI Bank issued new loans for EUR 336 million, contributing to 19% growth in the Bank’s gross portfolio, which reached EUR 368 million at the end of 2019. Its retail deposits grew by 25% and reached EUR 281 million.

    The results follow the long-term strategy since TBI Bank’s acquisition by 4finance in 2016. It is based on delivering profits through efficiency and clear focus on its core business.

    Almost 500.000 loans issued in 2019

    More than 1 million online and offline applications in Bulgaria and Romania and almost 500.000 loans issued in 2019 rank TBI Bank among the lending champions of South East Europe.

    Furthermore, the Merchant Solutions platform grew by 26% as it have disbursed more than 130.000 credits for EUR 85 million in total. Also in 2019 the Bank entered a new market, Poland.

    At the end of 2019 the Bank had a strong and well secured position from both capital and liquidity sides – capital adequacy ratio (CAR) being at 18.9% and liquidity coverage ratio (LCR) – 258%.

  • Uniqa Insurance Group to pay 0.18 euro / share dividend

    Uniqa Insurance Group to pay 0.18 euro / share dividend

    Uniqa Insurance Group announces the dividend for 2019 financial year: 18 cents per share.

    The dividend payment date is 8 June 2020.

    Johann Strobl, CEO of Raiffeisen Bank International AG (RBI), was elected to the Supervisory Board of UNIQA Insurance Group AG by the Annual General Meeting.

    Long-time bank manager Johann Strobl was Chief Risk Officer at RBI/RZB from 2007 to 2017 and Deputy CEO at RBI from 2013 to 2017. He has been the CEO of RBI, one of the leading banks in Austria and Central and Eastern Europe, since 2017. A business administration graduate, he has worked in the banking industry since 1989 and has served in Management Board positions since 2004.

    Erwin Hameseder left UNIQA’s Supervisory Board at the end of the Annual General Meeting on 25 May 2020.

  • 12.300 pharmacies were operating in Poland in 2019

    12.300 pharmacies were operating in Poland in 2019

    At the end of 2019, in Poland there were operating 12.3 thousand pharmacies (generally available and dispensaries) and 1.2 thousand pharmaceutical outlets in which 59.5 thousand pharmacists and pharmaceutical technicians were employed, latest Statistics Poland data shows.

    The night duties were fulfilled permanently by 2.9% pharmacies, where of temporarily by 20.8% pharmacies.

    The sales of medical products by mail order using the website (via epharmacies) were declared by 284 pharmacies and 5 pharmaceutical outlets.

    In Poland, there were on average 2.848 persons per 1 generally available pharmacy and pharmaceutical outlet (by 132 more than in the previous year).

    The highest number of inhabitants per 1 generally available pharmacy and pharmaceutical outlet was recorded in Pomorskie Voivodship (3.311), while the lowest – in Wielkopolskie Voivodship (2.545).

  • Eurobank net profit at €60m in Q1 2020

    Eurobank net profit at €60m in Q1 2020

    Eurobank operating performance in the first three months of the current year has been robust, with net profit increasing to €60m.

    Net interest income fell by 0.9% y-o-y to €339m in 1Q2020, with the net interest margin receding by 27 basis points over the same period to 2.08%.

    Net fee and commission income grew by 40.4% y-o-y to €92m, mainly due to rental income, fees capital markets and asset management business.

    Core income increased by 5.7% against 1Q 2019 to €432m, while total operating income rose by 2.9% y-o-y to €434m.

    Operating expenses decreased by 2.8% y-o-y in Greece and were up by 1.7% y-o-y at a group level due to the merger with Grivalia and Piraeus Bank Bulgaria. The cost to income ratio improved to 50.7% in 1Q2020 from 51.3% a year ago.

    International operations remained profitable, as net profit rose by 11.6% y-o-y to €42m. Core pre-provision income grew by 3.3% y-o-y to €65m and pre-provision income expanded by 0.6% y-o-y to €66m.

  • Albatross Designs opened its European HQ in Milan

    Albatross Designs opened its European HQ in Milan

    Albatross Designs opened its European HQ in Milan, Italy, with the initial core purposes of improving customer experience and increasing its presence in the European dialogue about sustainability.

    Since its inception, back in 2015 in California, Albatross Designs had a clear purpose to make products that have a positive environmental benefit.

    “This is a tremendous moment in the life of Albatross Designs because now we will be able to test upcoming, innovative sustainable products and technologies in two very different yet very similar places which means an opportunity to learn quickly, and hopefully, contribute to a reduction in pollution that much quicker. Our direct presence in Europe will also help us to expand the very successful Albatross Blade Take Back Program as well as many other projects currently underway,” said Andrew LaCenere, Founder & CEO.

    Based in the Lombardia region of Italy, internationally recognized as one of the most dynamic design hubs in the world, Albatross Designs Europe is now also well positioned to provide improved logistic processes with more flexible customs and lower shipping costs when marketing and distributing in Europe.

  • Immofinanz rental income rose by 13.4% to EUR 74.0 million in Q1 2020

    Immofinanz rental income rose by 13.4% to EUR 74.0 million in Q1 2020

    Immofinanz rental income rose by 13.4% to EUR 74.0 million in the first quarter of the 2020 financial year, above all due to the expansion of the portfolio through acquisitions and completions.

    The results of asset management increased by 18.1% to EUR 59.5 million, and the results of operations were 18.0% higher at EUR 43.5 million.

    However, the revaluation results of EUR -45.0 million from standing investments and goodwill reflect the adverse effects of the Covid-19 pandemic. Net profit for Q1 2020 was therefore negative at EUR -37.6 million.

    Occupancy rate stable at high level

    The real estate portfolio included 211 properties with a combined carrying amount of approximately EUR 5.1 billion as of 31 March 2020. Most of these properties – 92.2% or EUR 4.7 billion – are standing investments.

    Of this total, 64.7% are attributable to the office business and 35.2% to the retail business.

    The occupancy rate remained nearly constant at 96.4% (31 December 2019: 96.8%). The gross return equalled 6.1% based on IFRS rental income and 6.4% based on invoiced rents.

    Covid-19 update

    The legal regulations implemented to contain Covid-19 have been gradually lifted in recent weeks, beginning with mid-April in Austria, in nearly all countries where Immofinanz owns retail properties. At the present time, 79%
    of Immofinanz’s retail space has reopened.

    Romania represents an exception, where the four VIVO! shopping centers are still closed.