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Grupo Elektra's Q4'17 profit falls 69% on loss in other financial results

Grupo Elektra SAB de CV's fourth-quarter 2017 profit fell 69% from a year earlier, driven primarily by a loss in other financial results.

The company booked consolidated net income of 902 million Mexican pesos, or 3.90 pesos per share, down from 2.92 billion pesos, or 12.53 pesos per share, in the fourth quarter of 2016.

Grupo Elektra's consolidated revenue increased 15% year over year to about 27.09 billion pesos, while its operating profit also ticked 15% higher to 3.68 billion pesos. The company attributed the higher consolidated revenue to growth of 17% and 13% in financial revenues and commercial sales, respectively.

However, the company posted a loss of about 2.56 billion pesos in net other financial results, compared to a gain of 297.0 million pesos a year earlier. This reflects a 15% reduction in the market value of underlying assets of financial instruments held by the company, Grupo Elektra explained.

Sales, administration and promotion expenses, meanwhile, rose slightly to 10.84 billion pesos in the fourth quarter from 10.30 billion pesos a year ago.

Grupo Elektra, which controls Banco Azteca SA Institución de Banca Múltiple, said its net loan portfolio held 57.62 billion pesos at the end of 2017, expanding 13% from 50.99 billion pesos at the close of 2016.

The company's full-year 2017 net income improved to 15.40 billion pesos from 5.33 billion pesos in 2016.

As of Feb. 20, US$1 was equivalent to 18.66 Mexican pesos.