Orascom Development Holding AG
EQS-Adhoc: Orascom Development Holding AG: 9M 2015 Preliminary Guidance and OHD 9M 2015 Earnings
EQS Group-Ad-hoc: Orascom Development Holding AG / Key word(s): Miscellaneous/Miscellaneous Orascom Development Holding AG: 9M 2015 Preliminary Guidance and OHD 9M 2015 Earnings 16.11.2015 / 07:00 Release of an ad hoc announcement pursuant to Art. 53 KR. The issuer is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- Press Release Orascom Development Holding (ODH) Gives Guidance for 9M 2015, and Reports 9M 2015 Results for its Egyptian Largest Subsidiary; Orascom Hotels and Development (OHD) Orascom Development Holding continues its positive momentum for its 9M 2015. Revenues are expected to grow by 30-35% compared to 9M 2014 and the Adjusted EBITDA is expected to be within the range of CHF 79 to 80 million. The full-fledged 9M 2015 financial results & statements will be published as announced on the 19th of November. Management will also hold the earnings conference call on the same day at 2.00 pm CET. We have attached below Orascom Hotels and Development (OHD)'s 9M 2015 earnings release as reported on the Egyptian Stock Exchange. Orascom Hotels and Development; Egypt's Premier Resort Developer records a significant increase in net profits and continues to deliver on its earlier communicated targets. - A boost in net profits reaching EGP 290.0 million attributable to shareholders of the company compared to EGP 27.1 million in 9M 2014. - Our newly introduced projects in El Gouna continue to witness strong demand reflected in our contracted sales growing by 166% year on year to reach EGP 571.1 million - Rapid construction progress across all launched projects, with deliveries expected ahead of schedule for some. - Hotels continue their positive performance, recording higher revenues of EGP 440.4 million compared to EGP 385.1 million in 9M 2014 - Secured a new land- sub development agreement for USD 20 million. -EBITDA increased by 58% to reach EGP 592.6 million compared to EGP 375.1 million in 9M 2014 Altdorf, 16 November 2015 - Orascom Hotels and Development (OHD) revenues increased by 28.4% to EGP 1,447.6 million (9M 2014: EGP 1,127.4 million), resulting from the continued positive performance across all business segments, along with the full recognition of the earlier sub-development agreement with El Sewedy and the new sub-development agreement with Hassan Allam in the third quarter. The EBITDA for the period reached EGP 592.6 million vs EGP 375.1 million in 9M 2014. Continuing demand on our Real Estate projects coupled with enhanced construction activity, have pushed sales to reach EGP 571.7 million, an increase of 166% over the same period last year which reached EGP 214.8 million. Building on the success and the hype in demand on the earlier launched Joubal projects, we were able to expand on the existing brand and launch new phases of Joubal and Sabina for a total inventory of USD 50 million. We are also accelerating our constructing activity across all projects. Whereby, construction progress has reached 50% for Joubal that was launched in November 2014, which we will be delivering 6 months ahead of schedule. The speeding up of unit deliveries will allow earlier recognition of revenues and earlier cash collection of the 10% client delivery payment. We are working on introducing new products in Makadi, including single family homes that haven't been introduced before. In parallel, we are also speeding up the construction activity in the destination starting with the club house facility and are planning to deliver two apartments buildings in 2017. Real Estate segment revenue reached EGP 214.1 million vs. EGP 397.1 million in 9M 2014. Total deferred revenue from real estate that is yet to be recognized until 2018 has increased by 118% to reach EGP 641.3 million in 9M 2015 versus EGP 294.4 million in 9M 2014. Hotels segment continue its healthy performance with revenues increasing by 14.4% reaching EGP 440.4 million (9M 2014: EGP 385.1 million) despite the ongoing bans on Taba. Continued hotel refurbishments, coupled with the reviewed contracting strategy introduced in 2014 and the opening of new food and beverage outlets across El Gouna and Makadi hotels, led to a 24.2% increase in TRevPAR values in 9M 2015 over 9M 2014. Makadi hotels sustained their positive performance, recording a 106% growth in gross operating profits (GOP) in 3Q 2015 over 3Q 2014. This positive performance came further to OHM takeover of the hotels' management in February 2015. The hotels achieved a GOP of EGP 20 million, representing a 144% increase in 9M 2015 vs. 9M 2014. However, the segment result was negatively affected by the ongoing bans in Taba Heights along with the increase of service charge and utility tariffs imposed by the Government. Hotels' EBITDA declined by EGP 34.7 million in 9M 2015 compared to 9M 2014 due to foreign exchange losses and one off tax provisions. Nevertheless, we are continuing with our cost cutting measures, whereby in Taba Heights, we have downsized operations, shutting down 5 hotels and are only keeping Sofitel hotel open with 442 rooms. In the 9M 2015, net losses generated from Taba Heights hotels alone amounted to EGP 27 million. We have also taken some active measures to increase the efficiency of the segment and have turned 79 rooms of Ocean view hotel in El Gouna into residential units to be sold. By the end of the period, OHD operated a total of 5,955 hotel rooms. Outlook for FY 2015 Land Segment We are continuing with our land bank monetization strategy bringing in potential investors to invest in value adding projects in our destinations. Real Estate We are planning to introduce a new rental management program with the Water Side Condos new project planned to be launched in El Gouna during 4Q 2015. The project will include a sellable inventory of USD 30 million. We are also progressing with the construction activity that started in Makadi and Fayoum destinations. Hotels On track with the construction of Ancient Sands hotel in El Gouna, and Byoum hotel in El Fayoum , planned to open by end of 1Q 2016. The extent of the impact expected on our hotels operations post the recent events in Sharm El Sheikh is still unclear. Although the Group's portfolio does not include hotels in Sharm El Sheikh, yet, the Russian market represented 37% of Makadi's guests in 1H 2015. Accordingly, we are planning to compensate this lost business from other source markets until the situation returns back to its normal pace. We will also capitalize on the initiatives that the Egyptian government will be providing to support the tourism industry and tourism players in the market. Presentation The associated presentation can be found on Orascom Hotels and Development's website www.orascomhd.com under the Investor Relations section along with the Full Financials Telephone conference hosted by CI Capital today at 3:00 pm CLT A telephone conference for analysts and investors hosted by CI Capital will be held in English tomorrow at 3:00 pm CET. Chairman and CEO Manal Hussein, CFO Ashraf Nessim , Chief Hotel Officer Abdelhamid Abouyoussef and Chief Development Officer Ossama Aboualam will present the 9M 2015 results and will be available to answer questions. A registration is not required. Dial-in details are as follows: * Conference ID: 75424469 * International: +44 1452 5555 66 A replay of the conference call will be available until 4.00pm GMT on 22 November 2015 with the following dial in details: * Access Code: 75424469 * International Replay: +44 1452 550 000 About Orascom Hotels and Development (OHD) Orascom Hotels and Development is the largest subsidiary of Orascom Development Holding. OHD is an integrated developer of resort towns in Egypt, with a vertically-integrated business model involving the development of residential units, hotels, and recreational facilities such as golf courses, town centers, and marinas, in addition to supporting infrastructure, such as hospitals, schools, and utilities. OHD currently owns a land bank of 49.4 million square meter and 24 hotels with a total of 6,036 rooms within three operating destinations. El Gouna, on the Egyptian Red Sea Coast in Hurghada, Taba Heights, on the Sinai Peninsula and Makadi in Hurghada. OHD also holds an 87% stake in Tamweel, a financial services company providing mortgage, leasing, and insurance, among other services. Contact: Contact Investor Relations Sara El Gawahergy +201002185651 ir@orascomdh.com Contact Media Relations media@orascomdh.com End of ad hoc announcement -------------------------------------------------------------------------------- 16.11.2015 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 -------------------------------------------------------------------------------- 413109 16.11.2015