Bloomberg News

Delta Holding First-Half Revenue Falls After Owner’s Detention

July 25, 2013

Delta Holding DOO’s revenue fell in the first six months of the year, after Serbia’s richest man and the company’s owner, Miroslav Miskovic, remained in detention on corruption allegations.

First-half revenue fell 5.6 percent from a year before to 33.15 billion dinars ($384 million), 10 percent weaker than the the company’s plan, Delta Executive Vice President Dejan Jeremic, said in Belgrade today. Earnings before interest, taxes, depreciation and amortization totaled 2.7 billion dinars.

The detention of Miskovic, who has maintained his innocence, “of course influenced” Delta’s business, which may recover in the second half when business typically improves by 10 percent to 20 percent, Jeremic said. Miskovic was released from custody on July 23 after Delta posted bail. The trial has not been scheduled yet.

“I still expect us to meet our full-year revenue target” of about 700 million euros ($925 million), Jeremic said.

The company is turning the former Continental hotel into a Crowne Plaza facility, due to open in December. It also runs shopping malls and apple orchards, co-owns Delta Generali AD insurer and controls imports of international fashion, food and car brands including Nike Inc. (NKE:US), Ferrero SpA, Monsoon Plc, Sergent Major, BMW and Honda.

Its plans for a new shopping mall, Delta Planet, in Belgrade will be postponed to 2014.

To contact the reporter on this story: Gordana Filipovic in Belgrade at gfilipovic@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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