Orascom Development Holding AG
EQS-Adhoc: Orascom Development Holding AG: achieves turnover of CHF 109.4 million and adjusted EBITDA of CHF 8.1 million during difficult first half-year 2016.
EQS Group-Ad-hoc: Orascom Development Holding AG / Key word(s): Half Year
Results/Half Year Results
Orascom Development Holding AG: achieves turnover of CHF 109.4 million and
adjusted EBITDA of CHF 8.1 million during difficult first half-year 2016.
15.08.2016 / 07:00
Release of an ad hoc announcement pursuant to Art. 53 KR.
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ODH ("Orascom Development Holding") (SIX ODHN.SW), (EGX ODHN.EY) has released
its consolidated financial results for its six Months ended 30th of June 2016.
Orascom Development Holding (ODH) achieves turnover of CHF 109.4 million and
adjusted EBITDA of CHF 8.1 million during difficult first half-year 2016.
-Progressing with the implementation of a new destination based structure,
ultimately improving efficiency and transparency
-Took over the full ownership of Citadel Azur; a top performing, five-star hotel
with 514 rooms in the Red Sea
-Oman and UAE's hotels continue their positive performance, but hotels in Egypt
suffer from travel bans
-El Gouna most resilient destination in Egypt
-Value of contracted real estate units reached CHF 57.4 million, with
contributions coming from El Gouna, Jebel Sifah and Montenegro
-World renowned luxury hotel brand The Chedi comes to Luštica Bay/Montenegro's
first hotel
Altdorf, 15 August 2016 - Orascom Development Holding (ODH) was again confronted
with a difficult environment that was influenced by ongoing travel bans as well
as political and economic uncertainty in key markets. Total revenues decreased
by 33.5% to CHF 109.4 million compared to CHF 164.5 million in 1H 2015, mainly
due to the strategic decision to become more selective with land sales which
amounted to CHF 42.8 million in the comparative period as well as lower hotel
revenues in Egypt. In addition, results were impacted by currency losses in the
amount of CHF 10.0 million. Gross profit reached CHF 7.0 million and the net
loss attributable to shareholders for the reporting period amounted to CHF 41.3
million compared to a net profit of CHF 4.0 million a year ago. On the other
hand, Adj. EBITDA for the period remained positive reaching CHF 8.1 million
during 1H 2016.
Oman and UAE's hotels continue their positive performance while hotel segment
revenues still suffer from decline in Egypt's tourism revenues
Overall, total hotel segment revenues decreased to CHF 48.6 million in 1H 2016
compared to CHF 58.5 million in 1H 2015.
The hotels in the Gulf region continued their positive performance. In Oman,
huge demand was acknowledged for Salalah while we are speeding up the
construction activities of Al Fanar hotel's expansion to include 84 new rooms to
the existing hotel portfolio, bringing its total room count to 302 by December
2016. Omani hotels reached a revenue growth of 53.6% from CHF 8.9 million in 1H
2015 to CHF 13.3 million in 1H 2016 and the occupancy rate increased from 45% in
1H 2015 to 64% in 1H 2016. Similarly, in UAE, The Cove Rotana maintained its
momentum and reported a revenue increase of 6.8% growing from CHF 12.1 million
in 1H 2015 to CHF 12.9 million in 1H 2016 and occupancy rate increased from 70%
to 74% in 1H 2016.
In Egypt, the tourism sector is suffering from the continued travel bans from
Russia and some European countries. Egypt's tourist arrivals declined nearly 60%
y-o-y in June 2016. However, El Gouna's diversified market segmentation limited
the magnitude of this industry stance to only a 14 percent point decline in
occupancy from 65% in 1H 2015 to 51% in the reporting period. The new Ancient
Sand Hotel in El Gouna with 56 rooms and 120 hotel apartments were opened in
April 2016 reflecting the continuing development of the flagship destination. In
Makadi, full ownership of Citadel Azur, one of our top performing five star
hotels with 514 rooms, was taken in July 2016. In Taba Heights, demand picked up
during the quarter which led to the re-opening of 160 rooms in the Strand Beach
& Golf Resort in July 2016 out of the 503 rooms. Total occupancy of the
available rooms increased to 21% in 1H 2016 vs. 15% in 1H 2015. Taba remains the
most challenging destination to date given the extended travel bans to Sinai.
Advancing real estate and town management developments in Montenegro and Oman,
speeding up construction progress and adding liveliness to the destinations.
Real estate revenues reached CHF 32.1 million in 1H 2016 compared to CHF 41.1
million in 1H 2015. The Group's total value of contracted units in 1H 2016
reached CHF 57.4 million compared to CHF 69.5 million in 1H 2015. Total deferred
revenue from real estate that is yet to be recognized until 2018 reached CHF
148.5 million in 1H 2016 compared to CHF 144.9 million in 1H 2015.
El Gouna remains the most important contributor to the Group's sales value,
whereby we launched a new project called Fanadir Bay in April 2016 with a total
inventory of USD 60.0 million and we were able to sell 63% of the project in
only two months from its launch. In Egypt, we continued with the the accelerated
pace of construction, delivering more units in El Gouna and were able to
increase the real estate revenues coming from Egypt by 40% to reach CHF 25.3
million in 1H 2016 vs. CHF 18.1 million in 1H 2015. In Makadi, we are
progressing with the construction of the destination's club house.
Lustica Bay, Montenegro, continued its positive momentum recording total sales
of CHF 5.7 million in 1H 2016 compared to CHF 1.5 million during the same period
last year. In Lustica Bay, Montenegro, we are progressing ahead of schedule with
the construction of the new F and G building comprising 88 apartments and the
marina's superstructure is heading towards completion. In Oman, we are moving on
track with the development of the Sifah Golf course, planned to be launched in
Q4 2016. We have also put strong focus and efforts this quarter in developing
the liveliness of our destinations, whereby we have rented 11 new shops in
Salalah and Sifah, planning to open a new restaurant in Q3 2016 in Sifah and are
finalising an agreement with a multinational diving center to open its doors
there as well. On the other hand, we have partnered up with investors to develop
new sub projects that will add critical mass to our destinations, including two
Eco lodge Huts in Sifah and Salalah with a start-up capacity of 42 huts.
Outlook for FY 2016
Corporate
As part of the Group's new management strategy, the company will re-organize its
current segment structure to a destination based structure, pushing more
authority and responsibility on the ground of each destination, to better
increase operational efficiency, shorter the decision making process and improve
market transparency.
The company finalized the debt refinancing term sheet with all the banks and is
working on finalizing the agreements expected during Q3 2016
Real Estate
We will continue executing on the new development strategy, offering a wider
range of products across our destinations. In El Gouna, we are planning to
launch the first phase of a new real estate project in Q4 2016. We will also
launch new products in Fayoum with a total inventory of USD 3.4 million in Q4
2016. In Oman, we are planning to launch a new real estate project in Sifah
during Q4 2016. We are also progressing with the launch of phase 1 of the Sifah
Golf course and the waterpark construction. In Montenegro, we are speeding up
construction progress expecting to deliver the F&G buildings in early 2017.
Hotels
In Montenegro, we are planning to start the construction in 2016 of the first
hotel in Lustica Bay headed by luxury hotel brand The Chedi Group. In Oman, we
are finalizing the construction of Al Fanar extension to be launched in December
2016. In Egypt, we are finalizing the construction of Byoum lakeside hotel in
Fayoum, planned to open on the 1st of September. We are also continuing to
implement strict cost cutting measures across our hotels in Egypt. In UAE, we
are finalizing the construction of The Cove Rotana extension, adding 145 rooms
to open during Q1 2017.
Presentation
The associated financial statements and presentation can be found on Orascom
Developments' websitehttps://www.orascomdh.com/en/investor-relations/financial-r
eports.htmlunder the Investor Relations section.
Telephone conference today at 4.00 pm CET/ 4.00 pm CLT
Orascom Development invites you to its 1H 2016 results conference call on 15
August 2016 at 4:00 pm CET. 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: 50659886 International: +44 (0)207 192 8000 Switzerland
Toll Free: 0800 920 016Switzerland Local Number: 0315 800 059 Egypt Toll Free:
0800 000 0798 UK Toll Free: 0800 376 7922 US 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: # 50659886 International: +44 (0) 1452
55 00 00 UK National: 08717000145 US Toll Free: 1866 247 4222 Available until 22
August 2016
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:
Sara El Gawahergy
Head of Investor Relations
Tel: +20 224 61 89 61
Tel: +41 418 74 17 11
Email:ir@orascomdh.com
Contact for Media Relations:
Philippe Blangey
Partner
Dynamics Group AG
Tel: +41 432 68 32 35
Email:prb@dynamicsgroup.ch
Email:media@orascomdh.com
End of ad hoc announcement
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15.08.2016 News transmitted by Tensid EQS AG. www.eqs.com
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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
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