EQS Group-Ad-hoc: Orascom Development Holding AG / Key word(s): Half Year Results/Half Year Results

2015-08-20 / 07:00
Release of an ad hoc announcement pursuant to Art. 53 KR. The issuer is solely responsible for the content of this announcement.
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ODH ("Orascom Development Holding") (SWX ODHN.SW), (EGX ODHN.EY) has released its consolidated financial results for its first half ended 30th of June 2015

Orascom Development Holding (ODH) continues its positive performance recording an increase in Revenues and Adjusted EBITDA
Growth across all business segments with revenues growing by 36.3% to reach CHF 164.5 million from CHF 120.6 million in 1H 2014. Reaping the fruits of land monetization strategy, recording a boost of 338% in Adjusted EBITDA over the same period last year, to reach CHF 46.9 million (1H 2014: CHF 10.7 million).
Total sales for the 1H 2015 increased by 127% to CHF 69.5 million versus CHF 30.6 million in 1H 2014, driven by a substantial sales performance in El Gouna and a stable increase in Oman coming from Jebel Sifah and Salalah
Altdorf, 20 August 2015 - Orascom Development Holding (ODH) revenues increased by 36.3% to CHF 164.5 million (1H 2014: CHF 120.6 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 net profit attributable to the shareholders of the company reached CHF 4.0 million versus CHF 31.5 million in 1H 2014 which included the one-off gains related to the settlement of the Falcon agreement.
In line with the Group's strategy of divesting non-core assets and further deleveraging its balance sheet, ODH has sold its 100% stake of Golden Beach for Hotels; the company owning Marina Town Plaza Hotel in Jordan, to Jordan Projects for Touristic Development (JPTD) an associate of 15.6% for an amount of JOD 7.5 million (USD 10.6 million, CHF 10.1 million). It is worth noting that Marina Town Plaza is an independent hotel that does not fall within a fully-fledged destination and has been performing poorly due to the geopolitical situation in its neighboring countries. Its holding company, Golden Beach for Hotels, also carries two bank loans in the amount of USD 7.8million (CHF 7.5 million) , which are now out of ODH's total liabilities.


Hotels Adjusted EBITDA increased reaching CHF 6.3 million (1H 2014: CHF 3.7 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 18.2% increase in occupancy rates during 1H 2015 to reach 52% versus 44% in 1H 2014. This improvement has reflected positively on the total revenue of the segment which recorded an increase of 19.9% to reach CHF 58.5 million in 1H 2015 versus CHF 48.8 million in 1H 2014, in spite of the security challenges that Taba, Sinai 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 4 hotels in the destination from 45% in 2Q 2014 to 74% in 2Q 2015, with a 200% 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.

Our hotels in Oman witnessed a steady growth of the Italian business post our successful penetration in 2014. Italian business currently represent 21% of the total Omani Hotels' Business and is the destination's second producing market with approximately 11,000 room nights in 1H 2015. Occupancy rates for the 1H 2015 reached 52% compared to 44% in 1H 2014 and the TRevPAR (Total Revenues per Available Room) increased by 22.5% to CHF 49 compared to CHF 40 over the same period. By the end of the peroid, ODH operated a total of 7,636 hotel rooms compared to 7,122 in 1H 2014 Real Estate continues its positive momentum, with sales recording a significant increase of 127% over the same period last year to reach CHF 69.5 million (1H 2014: CHF 30.6 million)

The boost in real estate sales was driven by the enhanced sales performance in El Gouna and a stable increase in Oman coming from Jebel Sifah and Salalah

The successful outcome resulting from the first implementations of the new real estate strategy in Egypt was strongly witnessed during 2Q 2015, whereby net sales in El Gouna 2Q 2015 alone increased by 513% to reach CHF 42.9 million vs. CHF 7.0 million in 2Q 2014. The strategy entails 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 (twin homes, apartments and villas).

Our destinations in Oman also witnessed an increase in units sold. Demand increased in Sifah amid the completion of all the surrounding infrastructure of the sold units in addition to finalizing the construction of phase one of the destination's golf course. Salalah also witnessed more buying appetite post the successful launch of Rotana hotel in 2014, bringing the destination more to life.
Real Estate segment revenue reached CHF 41.1 million vs. CHF 49.5 million in 1H 2014. Total deferred revenue from real estate that is yet to be recognized until 2019 has increased by 28.3% to reach CHF 145 million in 1H 2015 versus CHF 113 million in 1H 2014.
Outlook for FY 2015
Land Segment
Under the strategic notion of accelerating the monetization of our land bank, OHD; our Egyptian subsidiary 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 (CHF1.8 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. In Montenegro, we continue to witness increased demand on real estate units post the official launch party of Lustica Bay that took place on the 15th of August. In Oman, we are planning to deliver 47 units by Dec 2015.

Hotels
Finalizing the construction of Ancient Sands Hotel in El Gouna, Byoum Hotel in El Fayoum , Al Fanar Hotel in Salalah and the extension of the Cove hotel in UAE. Properties are due to launch between Dec 2015 and Q1 2016
Please Check the attached release for further details

Contact:
Contact Investor Relations 
Sara El Gawahergy  +2  01 205 20 52 18
ir@orascomdh.com

Contact Media Relations
media@orascomdh.com

End of ad hoc announcement

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2015-08-20 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.
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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         
 
 
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