ALBHL continued to show uninspiring results as consolidated revenues in the first quarter of the year fell 4.6% y/y to BGN 4.18m. Service revenue contributed most to the decline by falling over 30% y/y to BGN 1m. The major service revenue generator for ALBHL is Albena Autotrans, which is the second largest subsidiary of the Holding and one of the best performing 2005 companies (25% top-line growth). The other revenue items of ALBHL stayed unchanged from last year, except for goods sales, which jumped 54%, largely driven by successful winter tourist season in the Holding's country hotels. Despite the 5% decline in opex (most evident in compensation, -16% y/y and hired services, -6%), ALBHL reported EBITDA of BGN 638K or 1% less than in Q1 2005. Q1 EBITDA margin, however, strengthened to 15.26% from 14.7% in 2005. Below the operating line, the situation improved mainly due to the BGN 200K under the position "Other financial income". In addition the Holding reported BGN 97K interest income (+80% y/y), which was sufficient to compensate the 4x jump in interest expense to BGN 43K in Q1 2006. As a result, although ALBHL's operational performance since the beginning of the year seems rather unconvincing, the financial income of the Holding helped one more time to the bottom line and ALBHL reported net income of BGN 409K, which is double the Q1 2005 profit. In the first quarter of the year ALBHL increased its trade receivables by some BGN 1.6m, which pushed the company's non-cash working capital up to BGN 10.78m in end-March '06 from BGN 9.47m in end-Dec '05. Consequently, the Holding's Q1 operating cash flow worsened from BGN 270K positive in 2005 BGN 281K to negative in 2006. There was no significant change in the debt of the Holding, which remained as low as 3.2% of equity.