ODH increases sales and reduces loss
Orascom Development Holding (ODH), an international developer of vacation resorts such as the Andermatt Reuss vacation village, believes it is on track with its turnaround strategy. Both revenue and EBITDA increased significantly in the first quarter of 2018. The loss also decreased significantly by almost 60 percent.
According to a statement from ODH, turnover in the first quarter of 2018 increased by 41 percent to CHF 74.1 million, adjusted EBITDA rose by 206 percent to CHF 14.7 million and the loss was reduced by 59 percent to CHF 5.1 million.
The company cites improved performance in all business areas as the reason for the increase in turnover. ODH sees the decrease in net loss as "a positive indication of the future return to profitability".
In the Hotels segment, revenue rose by 31 percent to 40.2 million and adjusted EBITDA by 66 percent to 15.4 million in the reporting period (Q1 2017: 9.3 million). According to ODH, the upward trend in the Egyptian tourism sector and the sale of the Citadel Azur hotel in Sahl Hashish had a positive impact on the results.
The Real Estate segment reported an increase in operating and financial results in all destinations, the company added. Net sales more than doubled to 39.8 million and turnover increased by 81 percent to 22.3 million.
Three hotels in Makadi are to be sold in the 2018 financial year, and the sale of shares in the Egyptian subsidiary Orascom Development Egypt (ODE) to a number of strategic investors will also be completed. At the same time, ODE's debt is to be reduced by around 56 million in the current year.
ODH currently operates ten destinations: Five in Egypt, two in Oman and one each in the United Arab Emirates, Montenegro and Switzerland (Andermatt).
