August 7, 2018 / 9:29 PM / 2 years ago

Brazil's Iguatemi hits quarterly profit estimates

SAO PAULO (Reuters) - Iguatemi Empresa de Shopping Centers SA, an upscale mall operator that recently joined Brazil’s benchmark Bovespa index, met profit estimates for the second quarter on Tuesday, but warned the World Cup had a significant effect on the beginning of the third quarter.

In a securities filing, the firm posted second quarter net income of 60.6 million reais ($16.1 million), up 18.8 percent from the same period last year and roughly in line with a Reuters consensus estimate of 62 million reais.

Shopping centers were severely impacted by a truckers’ strike in the second quarter that caused tenants’ inventory to be depleted. The soccer World Cup also took a toll, as clients spent more leisure time at home and in other social spaces.

Analysts priced in those one-off factors effectively, though the World Cup weighed on July numbers as well, Chief Financial Officer Cristina Betts told Reuters. She added that it was too early to say how the third quarter would turn out, and that the company was still confident in its 2018 revenue guidance.

The firm maintained its guidance of 170 million to 220 million reais of capital expenditure in 2018, she said, after the company spent 65 million reais in the first six months of the year.

Quarterly earnings before interest, taxes, depreciation, and amortization (EBITDA) came to 133 million reais, exactly in line with estimates.

Reporting by Gabriela Mello; Writing by Gram Slattery; Editing by Phil Berlowitz

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