Hungexpo owner State Privatization and Holding Rt. (ÁPV) confirmed HVG’s information that the fair organizing company posted losses in 2004 instead of the planned profits. ÁPV sources added that the privatization and state asset agency will seek written explanation from Hungexpo CEO János Barabás.
Hungexpo is currently in the process of being privatized, and last month ÁPV announced a consortium lead by real estate tycoon Sándor Demján as the winning bidder.
It was rumored earlier that Hungexpo is unlikely to meet the HUF 260 million planned profit target for 2004. At the end of last year, the board of Hungexpo lowered the profit forecast to HUF 110 million. However, the company’s negative results came as a surprise to ÁPV. The bad news was revealed at the board meeting of Hungexpo last week, when it was announced that revenues were on target, exceeding HUF 5 billion.
It is anticipated that investments, renovation costs, and expenses of wage increases must have caused the severe losses. ÁPV has not commented how Hungaexpo’s negative results will influence the company’s planned sale to private owners.
Hungexpo Reports Losses
Utolsó frissítés:
State-owned fair organizing company Hungexpo Rt. went HUF 110 million into the red last year, as opposed to making HUF 260 million in profits as planned, HVG has learned.