Orascom Development Holding AG
EQS-Adhoc: Orascom Development Holding AG: Gives Guidance for 1H 2015, and Reports 1H 2015 Audited Results for its Egyptian Largest Subsidiary; Orascom Hotels and Development (OHD)
EQS Group-Ad-hoc: Orascom Development Holding AG / Key word(s): Miscellaneous/Miscellaneous Orascom Development Holding AG: Gives Guidance for 1H 2015, and Reports 1H 2015 Audited Results for its Egyptian Largest Subsidiary; Orascom Hotels and Development (OHD) 16.08.2015 / 08:00 Release of an ad hoc announcement pursuant to Art. 53 KR. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------- Orascom Development Holding (ODH) Gives Guidance for 1H 2015, and Reports 1H 2015 Audited Results for its Egyptian Largest Subsidiary; Orascom Hotels and Development (OHD) Orascom Development Holding continues its positive performance in 1H 2015. Revenues are expected to grow by 35-40% compared to 1H 2014 and the Adjusted EBITDA is expected to be within the range of CHF 46.5 to 47.5 million. The full-fledged 1H 2015 financial results & statements will be published as announced on the 20th of August. Management will also hold the earnings conference call on the same day at 2.00pm CET. We have attached below Orascom Hotels and Development (OHD)'s 1H 2015 earnings release as reported on the Egyptian Stock Exchange. Orascom Hotels and Development; Egypt's Premier Resort Developer continues to report a strong set of operating and financial results Robust operational growth across all business segments with net profit of EGP 167.1 million attributable to shareholders of the company versus a loss of EGP 41.6 million in 1H 2014. Solid execution of the land monetization strategy recorded a boosT in EBITDA margin to reach 41%, value of EGP 383.3 million (1H 2014: EGP 198.5 million). Total sales for the 1H 2015 increased by 228% to EGP 503.7 million versus EGP 153.3 million in 1H 2014, marking the success of the company's new real estate and development strategy. Cairo, 16 August 2015 - Orascom Hotels and Development (OHD) revenues increased by 25.0% to EGP 937.2 million (1H 2014: EGP 750.2 million), resulting from the continued positive performance of the hotel segment along with the recognition of the second and third parcels of land from the sub-development agreement. The EBITDA for the period was EGP 383.3 million vs EGP 198.5 million in 1H 2014. Real Estate sales records a huge increase of 228% over the same period last year to reach EGP 503.7 million (1H 2014: EGP 153.3 million) which also entails an increase of 26% more than the full year 2014 sales. The successful outcome resulting from the first implementations of the new real estate strategy was strongly witnessed during 2Q 2015, whereby net sales in 2Q 2015 alone increased by 307% to reach EGP 388.0 million vs. EGP 86.8 million in 2Q 2014. The model proved successful with the launch of "Joubal Lagoons" project in El Gouna, in early April of this year, which is now sold out. The project offered a diversification of the usual product mix, serving a larger pool of clientele by offering a range of price-bracket and different units to include apartments, twin houses and villas. The value of units sold in El Gouna witnessed a 237% increase to reach EGP 481.4 versus EGP 142.7 million in 1H 2014. Real Estate segment revenue reached EGP 145.2 million vs. EGP 350.0 million in 1H 2014. Total deferred revenue from real estate that is yet to be recognized until 2017 has increased by 130% to reach EGP 685.9 million in 1H 2015 versus EGP 298.1 million in 1H 2014. Hotels EBITDA increased by 77% reaching EGP 13.8 million (1H 2014: EGP 7.8 million) despite the ongoing bans on Taba. The signed commitment deals with the tour operators in addition to the new yielding strategy & pricing protocol that was introduced in 2014, afforded a 40% increase in occupancy rates during 2Q 2015 to reach 56% versus 43% in 2Q 2014. This improvement has reflected positively on the total revenue of the segment which recorded an increase of 18% to reach EGP 272.7 million in 1H 2015 versus EGP 231.3 million in 1H 2014, in spite of the security challenges that Egypt has been confronting. The increased cooperation with FTI and the launch of El Gouna- FTI joint marketing campaign, facilitated an 80% growth in FTI's room night in 2Q 2015 over 2Q 2014. A notable boost was witnessed in the performance of Makadi Hotels, after several management restructuring, increasing the average occupancy rate of the 3 hotels in the destination from 45% in 2Q 2014 to 75% in 2Q 2015, with a 300% increase in the hotels gross operating profits in 2Q 2015 over 2Q 2014. Taba Heights continued to operate at 50% of its capacity and is still suffering from the European Countries' travel bans on the region, ultimately affecting the total segment's profitability margins. Occupancy rates for the 1H 2015 reached 49% compared to 40% in 1H 2014 and the TRevPAR (Total Revenues per Available Room) increased by 33.1% to EGP 285 compared to EGP 214 over the same period. By the end of the peroid, OHD operated a total of 6,036 hotel rooms. Outlook for FY 2015 Land Segment Under the strategic notion of accelerating the monetization of our land bank, OHD is currently holding advanced negotiations with a sub-developer to develop a new land parcel in El Gouna within the range of 100,000 m2 Real Estate We are planning to launch total inventory of USD 50 million during the 3Q and 4Q 2015 from new launches in El Gouna. We are working on reviving the Makadi and Fayoum destinations. In Makadi, we have signed two new contracts with an external developer for EGP 15 million, to manage the destination's existing retail outlets and build its club house facility we are also planning to open the destination's first school. We are also finalizing the construction of the villas in Byoum, Al Fayoum with expected delivery during 1Q 2016. Hotels Finalizing the construction of Ancient Sands Hotel in El Gouna, and Byoum Hotel in El Fayoum , planned to open by end of 1Q 2016. PLEASE CHECK THE ATTACHED RELEASE FOR MORE DETAILS Contact: Contact Investor Relations Sara El Gawahergy +41 418 74 17 11 ir@orascomdh.com Contact Media Relations media@orascomdh.com End of ad hoc announcement +++++ Additional features: Document: http://n.equitystory.com/c/fncls.ssp?u=OUGOBMKQQH Document title: ODH PRELIMINARY 1H2015 GUIDANCE AND OHD 1H 2015 EARNINGS RELEASE --------------------------------------------------------------------- 16.08.2015 News transmitted by EQS Schweiz AG. www.eqs.com - news archive: http://switzerland.eqs.com/de/News The issuer is responsible for the contents of the release. --------------------------------------------------------------------- Language: English Company: Orascom Development Holding AG Gotthardstraße 12 6460 Altdorf Switzerland Phone: +41 41 874 17 17 Fax: +41 41 874 17 07 E-mail: ir@orascomdh.com Internet: www.orascomdh.com ISIN: CH0038285679 Valor: A0NJ37 Listed: Foreign Exchange(s) SIX End of News EQS Group News-Service --------------------------------------------------------------------- 387135 16.08.2015