ODH returns to the black

The Covid 19 pandemic continues to affect the hospitality segment of Orascom Development Holding. Nevertheless, the company grew in the first quarter of the current year - due to a significant increase in the real estate segment.

ODH reports revenues of CHF 106.5 million for the first three months of 2021, up 15% from 92.9 million a year earlier. Operating EBITDA almost doubled within the year to 29.4 million (PY: 15.2 million, +93%), and EBITDA increased by 86% to 25.8 million (PY: 13.9 million). The bottom line is a profit of 3.1 million, compared to a loss of 4.2 million in the previous year. ODH points out that the results had a negative currency effect of 1.6 million in Q1 2021 compared to a positive effect of 0.4 million in Q1 2020. Cash flow from operations is put at 7.4 million.

Significant increase in the Real Estate Division

The Real Estate segment achieved net property sales of 145.8 million, an increase of 35% compared to the same period last year (107.7 million). Real Estate revenues increased by 88.3% to 83.4 million in the first quarter of 2021 (previous year: 44.3 million), and operating EBITDA even increased by 204% to 37.4 million (previous year: 12.3 million). The increase in revenue from real estate was due to the accelerated construction performance of projects in Egypt since the beginning of the year, ODH said.

Total deferred revenues from real estate that will be recognized by 2025 increased byT 201.2 million toT 633.8 million in the reporting period (previous year:T 530.2 million). Total receivables from the real estate portfolio increased by 31% to 856.1 million (PY: 651.4 million) in the same period.

Slump in hotel sales

The hotel segment was still significantly impacted by the Covid 19 pandemic in the first quarter of 2021, ODH said. It responded with a plan to temporarily reduce hotel operating costs, mitigating the impact on cash, it said. The segment's revenue slumped by 70% to 10.6 million in the period from 35.5 million a year earlier. The segment's operating EBITDA was negative at 2.4 million in the first quarter of 2021, compared to a positive result of 10.1 million in the first quarter of 2020.

The Destination Management segment recorded a decline in revenue of around 5% to 12.5 million (previous year: 13.1 million), with operating EBITDA of

ODH still does not want to provide guidance for the full year 2021. The outlook is limited as demand is impacted by the ongoing unclear circumstances as a result of the pandemic and the timing of vaccinations, the company said. (ah)