Orascom: Net loss despite jump in sales
Orascom Development Holding increased revenue in the first half of the year and broke even again in operational terms. Due to currency losses, however, the bottom line remains negative.
Sales increased by 43% to CHF 155.6 million and gross profit even rose by 97% to CHF 49.5 million (H1 2017: CHF 25.1 million). Adjusted EBITDA also increased significantly, rising from CHF 11.0 million to CHF 35.0 million.
Nevertheless, Orascom Development Holding reported a net loss of 16.4 million, including a one-off currency loss of 16.7 million due to the devaluation of the Egyptian pound. In the first half of 2017, there was still a loss of 19.3 million, which included gains of 6.3 million from the repayment of loans.
According to Orascom, all of the company's segments contributed to the good operating result. Hotel revenue rose by 25 percent to 73.3 million in the first half of 2018 and gross profit increased by 42 percent from 20.8 million to 29.5 million. Adjusted EBITDA increased by 34 percent to 23.6 million (H1 2017: 17.6 million).
In the real estate segment, net sales rose by 88% to 98.7 million and revenue increased by 91% to 58.1 million. According to the company, the income from property sales that will be recognized in revenue by 2023 rose by 24% to 185.8 million. In addition to this outstanding real estate turnover, the deferred interest income of 13.5 million will also affect turnover in the future, ODH emphasizes.
In the city management sector, sales increased by 34 percent to 15.8 million after 11.8 million in the previous year.
Orascom Development Holding currently operates ten destinations: Five in Egypt, (El Gouna, Taba Heights, Makadi, Fayoum and Harram City), The Cove in the United Arab Emirates, Jebel Sifah and Hawana Salalah in Oman, Lustica Bay in Montenegro and Andermatt in Switzerland. (ah)
