Holding company IDB Development posted a NIS 1 billion loss for 2014, compared with a loss of NIS 151 million in 2013. In the fourth quarter of 2014, the loss was NIS 759 million, compared with NIS 48 million in the corresponding quarter of 2013.
The group's revenue totaled NIS 2.1 billion in 2014, slightly less than in 2013.
The company says that the 2014 results are affected by downward revaluations in subsidiary companies, chiefly Discount Investment Corporation (TASE: DISI), of NIS 691 million, and by a NIS 360 million fall in the market value of its shares in Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS).
IDB Development's financial statements carry a going concern qualification from its auditors, mainly because of the precarious financial position of the group.
IDB Development is controlled by Moti Ben-Moshe and Eduardo Elsztain. The two have been conducting a control battle in the past few months and have not managed to agree on how to extract the group from its difficulties. Last month, Ben-Moshe demanded the controlling stake in the group from Elsztain, and it appears that they will go to arbitration.
Published by Globes [online], Israel business news - www.globes-online.com - on March 31, 2015
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