ODH suffers from the Corona pandemic
Orascom Development Holding (ODH) posted a revenue drop of just over a quarter in the first half of the year due to the Covid 19 pandemic and related travel restrictions, and slipped further into the red.
Total revenue reportedly fell by 26.4% to CHF164.1 million from 222.9 million a year ago, while gross profit came in at 43.6 million, down from 61.2 million in the first half of 2019. Gross profit margin was 26.6%, down only slightly from 27.5% a year ago, thanks to various cost savings.
Operating margins were significantly impacted by, among other things, the complete shutdown of the hotel business, ODH added. Accordingly, a net loss of 19.2 million was incurred in the first half of the year, compared to 1.5 million in the previous year. The result was additionally burdened by exchange rate losses of 2.2 million.
ODH's announcement said adjusted EBITDA was 27.2 million, down 34.6% from 41.6 million a year earlier. EBITDA was 18.9m. Expenses fell from 24.9 million to 19.1 million.
As the group had to close all its hotels, revenue in this segment slumped by 55.4% to 37.3 million (PY: 83.6 million), according to ODH. The segment's EBITDA fell by 98.1% to 0.5 million (prev. yr.: 26.3 million) However, due to cost saving and liquidity measures, gross profit was up 3.5 million.
Due to the easing of Corona restrictions, there has been a steady, gradual improvement in hotel reservations for July and August, ODH said. The company added that it will accelerate the pace of construction in all destinations and expects to see an increase in property sales in the second half of the year. (ah)
