EQS Group-Ad-hoc: Orascom Development Holding AG / Key word(s): 9-month
Orascom Development Holding AG: achieves turnover of CHF 169.9 million and
operational profit (adjusted EBITDA) of CHF 13.9 million.
15.11.2016 / 07:00
Release of an ad hoc announcement pursuant to Art. 53 KR.
ODH ("Orascom Development Holding") (SIX ODHN.SW), (EGX ODHN.EY) has released
its consolidated financial results for its nine Months ended 30th of September
Orascom Development Holding (ODH) achieves turnover of CHF 169.9 million and
operational profit (adjusted EBITDA) of CHF 13.9 million.
Margin improvement in Q3 2016 compared to first half-year 2016.Orascom Hotels
and Development (OHD)concluded the signature of a CHF 228.7 million debt
refinancing package with its banks. Revenues reached CHF 169.9 million vs. CHF
246.0 million in 9M 2015 (which included land sales revenue of CHF 64.1
million).Significant increase in Oman and UAE's hotels performance.Net real
estate sales increased by 49.1% to reach CHF 68.6 million versus CHF 46.0
million in 9M 2015, with main contributions coming from El Gouna and
Montenegro.Progressing with the implementation of a destination based structure
to be fully in place within the next months.Altdorf, 15 November 2016 - Orascom
Development Holding (ODH) results were still impacted by the political and
economic backdrop in Egypt. However other destinations in Oman and Montenegro
are witnessing higher levels of maturity and accordingly higher contributions to
the Group's revenues. Total revenues decreased by 30.9% to reach CHF 169.9
million compared to CHF 246.0 million in 9M 2015, mainly due to the strategic
decision to become more selective with land sales which amounted to CHF 64.1
million in the comparative period. It is important to note that when results are
normalized for land sales in both comparative periods, the net loss attributable
to the shareholders would have reached CHF 45.8 million compared to a loss of
CHF 48.4 million in 9M 2015.
In addition, results were impacted by foreign exchange losses amounting to CHF
13.2 million. Gross profit reached CHF 9.2 million and the net loss attributable
to shareholders for the reporting period amounted to CHF 60.7 million compared
to a net profit of CHF 3.9 million in 9M 2015. On the positive side, adjusted
EBITDA for the period reached CHF 13.9 million.
In November 2016; ODH's largest subsidiary in Egypt, Orascom Hotels and
Development (OHD) has signed a CHF 228.7 million debt refinancing package
allowing the company to postpone its principal payments for the coming 3 years
and its interest payments for FY 2016 with an option to postpone the interest
payments for FY 2017. The rescheduling will strengthen the balance sheet of the
company and thereby lead to more flexibility to advance its projects.
Oman and UAE hotels record an increase of 55.9% and 11.2% in revenues over the
In Oman, the new management setup achieved a notable boost in the performance of
the hotels with a 39% increase in occupancy growing from 44% to 61% and a 128%
increase in GOP growing from CHF 2.5 million to CHF 5.9 million in 9M 2016.
Omani hotels revenues have significantly increased by 55.9% from CHF 14.5
million in 9M 2015 to CHF 22.6 million in 9M 2016. Similarly, in UAE, The Cove
Rotana continued its positive momentum and reported a revenue increase of 11.2%
to reach CHF 19.4 million in 9M 2016 compared to CHF 17.5 million in 9M 2015 and
occupancy rate grew from 67% in 9M 2015 to 78% in 9M 2016.
In Egypt, the severe decline in the country's tourism sector continued to affect
the segment's performance. Egypt tourist arrivals fell c41% y-o-y in September
2016 compared to same period last year. Overall, tourism revenues dropped by
48.9% to USD 3.8 billion in FY15/16 compared to USD 7.4 billion in FY14/15.
However, continued marketing efforts with market leading tour operators has
improved local market presence along with more direct bookings. As a result, El
Gouna fostered its leading market position recording an occupancy of 55% in 9M
2016 versus 66% in 9M 2015 and increase the ARR levels by 8.2% to reach CHF 53
vs. CHF 49 in 9M 2015.
In Taba Heights, demand has started to pick up since the end of Q2 2016 due to
the aggressive marketing campaigns we implemented in Jordan and the local
Egyptian markets. Subsequently, we managed to reopen 276 rooms out of the 503
rooms in Strand Beach & Golf Resort. To date, we have a total of 718 operating
rooms in Taba Heights out of 2,365 rooms. Total occupancy of the available
rooms increased to 33% in 9M 2016 vs. 19% in 9M 2015.
In Makadi, we continued to operate two hotels out of four representing 62% of
the destination's total capacity during the reporting period since Q4 2015, due
to the prolonged impact resulting from the ongoing Russian travel bans.
Nevertheless, we successfully introduced measures to overcome the drop in
business and have signed a 3-year lease agreement starting 1st of November 2016,
with FTI Group for 3 of our hotels in Makadi for a total of EUR 3.3 million per
annum net to owner, subject to an annual increase of 5%. It is important to note
that those 3 hotels have recorded a GOP loss of EUR 0.69 million for the 9M
2016, and have given the company a GOP of only EUR 2.5 million in FY 2015 and
EUR 1.1 million in FY 2014. In Fayoum, we successfully held the soft opening of
Byoum Lakeside Hotel on the 1st of September recording an occupancy of 27%
during its first month of operation.
Overall, total hotel segment revenues decreased by 6.7% to reach CHF 85.9
million in 9M 2016 compared to CHF 92.1 million in 9M 2015.
Total real estate sales reached CHF 74.3 million during the 9M 2016, with a
noticeable boost in sales of Q3 2016 alone recording an increase of 87.8% to
reach CHF 16.9 million versus CHF 9.0 million in Q3 2015.
Enhanced sales performance during the quarter with contributions coming mainly
from El Gouna and Montenegro. The increase came on the back of targeted sales
and marketing activities that we started implementing with our new launches
during Q2 2016. In El Gouna, the Fanadir bay project that we launched in April
2016 got solid demand and has sold almost 75% of its inventory. We also launched
a limited project called «The West Villas» in July, holding 11 units for a total
value of USD 3.0 million, which has successfully sold out during 48 hours from
Lustica Bay, Montenegro, continued its strong sales momentum since the beginning
of the year. We were able to conclude a bulk sale's deal for EUR 3.9 million
pushing the value of contracted units to CHF 12.0 million in 9M 2016 compared to
CHF 6.4 million in 9M 2015. We finalized the marina superstructure and
progressing ahead of schedule with the construction of the new F&G building
comprising 88 apartments.
In Oman, we are moving on track with the development of the Sifah Golf course,
planned to be launched in Q4 2016. We have successfully launched a new real
estate project called «Golf Lake Residence» with a total inventory of CHF 19.3
million, comprising of 118 apartments overseeing the golf course and have opened
the first phase for sale.
Total real estate revenues reached CHF 44.2 million in 9M 2016 compared to CHF
55.4 million in 9M 2015. The Group's total value of contracted units in 9M 2016
reached CHF 74.3 million compared to CHF 78.5 million in 9M 2015 and the net
value of contracted units reached CHF 68.6 million compared to CHF 46.0 million
in 9M 2015. Total deferred revenue from real estate that is yet to be
recognized until 2018 reached CHF 155.6 million in 9M 2016 compared to CHF 143.9
million in 9M 2015.
Outlook for FY 2016
In-line with the company's initiative to focus on its core destinations in
Egypt, Oman and Montenegro, the Group is undertaking efforts to sell its
non-strategic assets and accordingly has reclassified Tamweel Group companies as
an asset held for sale.
It is important to note that post the recent decision of the CBE to float the
Egyptian pound and raising the interest rates for deposites in EGP by
approximately 3.0%. The value of monetary assets and liabilities in subsequent
periods may differ and may affect the statement of profit and loss. The
severity of the impact is currently being assessed.
In Egypt and Oman, we are capitalizing on the new project launches, 'Tawila' in
El Gouna launched in October, and 'Golf Lake Residence' in Sifah launched in
November, recorded positive sales momentum. We are still planning the launch of
further products in Fayoum, Egypt, with a total inventory of USD 3.4 million in
Q1 2017. In Salalah, Oman, we are planning the construction of the water park
project during Q4 2016. In Montenegro, we are speeding up construction progress
expecting to deliver the F&G buildings in early 2017. In addition, we are
currently studying several opportunities for the first and second home markets
In Montenegro, we are progressing with the development plans of the 5-star Chedi
Hotel in Lustica Bay planning to start construction during Q4 2014. In Oman, we
are finalizing the construction of Al Fanar extension (84 new rooms) to the
existing hotel portfolio, bringing its total room count to 302 by December 2016.
In UAE, we are finalizing the construction of The Cove Rotana extension, adding
145 rooms to open during Q1 2017.
The associated financial statements and presentation can be found on Orascom
eports.htmlunder the Investor Relations section.
Telephone conference today at 3:30 pm CET (Zurich Time)/4:30pm (Cairo Local
Orascom Development invites you to its 9M 2016 results conference call on 15
November 2016 at 3:30 pm CET (Zurich Time). The call will start by a
presentation from the CEO Khaled Bichara and the CFO Ashraf Nessim, followed by
a Q&A session. A registration is not required.Conference password:
50659886International: +44 (0)207 192 8000Switzerland Toll Free: 0800 920
016Switzerland Local Number: 0315 800 059Egypt Toll Free: 0800 000 0798UK Toll
Free: 0800 376 7922US Toll Free: 1866 966 1396
A replay of the conference call will be available for one week with the
following dial in details:Access Code: # 50659886International: +44 (0) 1452 55
00 00UK National: 08717000145US Toll Free: 1866 247 4222Available until 22
About Orascom Development Holding AG
Orascom Development is a leading developer of fully integrated destinations that
include hotels, private villas and apartments, leisure facilities such as golf
courses, marinas and supporting infrastructure. Orascom Development's
diversified portfolio of destinations is spread over eight jurisdictions (Egypt,
UAE, Jordan, Oman, Switzerland, Morocco, Montenegro and United Kingdom), with a
primary focus on touristic destinations. The Group currently operates seven
destinations; three in Egypt El Gouna, Taba Heights and Makadi, The Cove in
United Arab Emirates, Jebel Sifah and Salalah Beach in Oman and Andermatt in
Switzerland. Orascom Development has a dual listing, with a primary listing on
the SIX Swiss Exchange and a secondary listing on the EGX Egyptian Exchange.
Contact for Investors:
Sara El Gawahergy
Head of Investor Relations
Tel: +20 224 61 89 61
Tel: +41 418 74 17 11
Contact for Media Relations:
Dynamics Group AG
Tel: +41 432 68 32 35
Disclaimer & Cautionary Statement
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website indicated herein is not for use within any country or jurisdiction or by
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statements in this e-mail and the attached news release may be forward-looking
statements, including, but not limited to, statements that are predications of
or indicate future events, trends, plans or objectives. Forward-looking
statements include statements regarding our targeted profit improvement, return
on equity targets, expense reductions, pricing conditions, dividend policy and
underwriting claims improvements. Undue reliance should not be placed on such
statements because, by their nature, they are subject to known and unknown risks
and uncertainties and can be affected by other factors that could cause actual
results and Orascom Development Holding AG's plans and objectives to differ
materially from those expressed or implied in the forward looking statements (or
from past results). Factors such as (i) general economic conditions and
competitive factors, particularly in our key markets; (ii) performance of
financial markets; (iii) levels of interest rates and currency exchange rates;
and (vii) changes in laws and regulations and in the policies of regulators may
have a direct bearing on Orascom Development Holding AG's results of operations
and on whether Orascom Development Holding AG will achieve its targets. Orascom
Development Holding AG undertakes no obligation to publicly update or revise any
of these forward-looking statements, whether to reflect new information, future
events or circumstances or otherwise. It should further be noted, that past
performance is not a guide to future performance. Please also note that interim
results are not necessarily indicative of the full-year results. Persons
requiring advice should consult an independent adviser.
End of ad hoc announcement------------------------------------------------------
Company: Orascom Development Holding AG
Phone: +41 41 874 17 17
Fax: +41 41 874 17 07
Listed: SIX Swiss Exchange
End of News EQS Group News Service