EQS Group-Ad-hoc: Orascom Development Holding AG / Key word(s): 9-month figures/9-month figures

2015-11-19 / 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") (SIX ODHN.SW), (EGX ODHN.EY) has released its consolidated financial results for its Nine Months ended 30th of September 2015

Orascom Development Holding (ODH) records 33.3% increase in revenues and 219.3% increase in adjusted EBITDA over the same period last year.
33.3% increase in revenues to reach CHF 246.0 compared to CHF 184.6 million in 9M 2014, with Adjusted EBITDA reaching CHF 79.5 million, a 219.3% increase over CHF 24.9 million in 9M 2014
Hotels record a noticeable increase of 52.8% in Adjusted EBITDA to reach CHF 13.6 million compared to CHF 8.9 million in 9M 2014 Signed a new land sub development agreement in Egypt for CHF 19.1 million Total Real Estate sales for the 9M 2015 increased by 51.5% to CHF 83.3 million versus CHF 55.0 million in 9M 2014

Altdorf, 19 November 2015 - Orascom Development Holding (ODH) revenues increased by 33.3% to CHF 246.0 million (9M 2014: CHF 184.6 million), resulting from the enhanced performance from the hotel segment, real estate unit deliveries in Egypt and Montenegro, the recognition of the second and third parcels of land from the first sub-development agreement in EL Gouna with El Sewedy and the new sub-development concluded with Hassan Allam in El Gouna for CHF 19.1 million in 3Q 2015.

The net profit attributable to the shareholders of the company reached CHF 3.9 million, hindered by increased losses from the share of associates, mainly Andermatt Swiss Alpes and Orascom Housing Communities. This compares to CHF 36.4 million in 9M 2014, which included the one-off gains related to the settlement of the Falcon agreement.

Adjusted EBITDA increased by 219.3% to reach CHF 79.5 million compared to 24.9 million in 9M 2014.

Hotels record a noticeable increase in Adjusted EBITDA reaching CHF 13.6 million (9M 2014: CHF 8.9 million) despite ongoing travel bans for 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 21% increase in TRevPAR values in 9M 2015 over 9M 2014, whereby Occupancy reached 54% vs, 49% in 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 was driven by OHM taking over the hotels' management in February 2015. The hotels achieved a GOP of CHF 2.5 million, representing a 139% increase in 9M 2015 vs. 9M 2014.

Oman continues to witness a notable improvement whereby GOP grew, reaching CHF 2.6 million in 9M 2015 versus a loss of CHF 0.08 million in 9M 2014.
However, the segment result is still negatively affected by the ongoing bans in Taba Heights along with the increase of service charge and utility tariffs imposed by the Government. Nevertheless, we are continuing with our cost cutting measures. In Taba Heights, we have downsized operations, shutting down 5 hotels and are only keeping the Sofitel hotel open (442 rooms). In the 9M 2015, GOP losses generated from Taba Heights hotels alone amounted to CHF 3.4 million. The Cove Rotana continues to suffer from the effect of the Russian ruble devaluation. However, we increased our marketing efforts to attract more of the local and the German speaking markets to compensate for the lost Russian business. We have also taken some active measures to increase the efficiency of the segment by converting 79 rooms of the Ocean view hotel in El Gouna into residential units to be sold. By the end of the period, ODH operated a total of 7,541 hotel rooms.

Real Estate sales continue to improve recording an increase of 51.5% over the same period last year to reach CHF 83.3 million (9M 2014: CHF 55.0 million)

In Egypt, we continued to build on the success of the earlier launched Joubal projects in El Gouna and were able to expand on the existing brand and launch new phases for a total inventory of USD 50 million.
We are also accelerating our construction activities across all projects. Construction progress has reached 50% for Joubal, which was launched in November 2014. Delivery is expected to occur 6 months ahead of schedule. This will allow for an 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 so far. In parallel, we are also speeding up the construction activity in the destination starting with the club house facility and we are planning to deliver two apartments buildings in 2017.

In Oman, sales are starting to pick up amid advanced construction progresses of the first 9 holes of the Sifah's golf course. We are also accelerating the real estate unit deliveries and working on a new marketing campaign for Salalah and Sifah.

In Montenegro, sales have continued the positive trend following the official launch party of the destination in August. Clients used their homes for the first summer this year and we were able to deliver 11 units during the last quarter.

Real Estate segment revenue reached CHF 55.4 million vs. CHF 60.9 million in 9M 2014. Total deferred revenue from real estate that is yet to be recognized until 2019 increased by 13.2% and reached CHF 143.9 million in 9M 2015 versus CHF 127.1 million in 9M 2014.

Outlook for FY 2015
Land
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 new Water Side Condos project, which is planned to be launched in El Gouna during 4Q 2015. The development will include a sellable inventory of USD 30 million. We are also progressing with the construction activity that started in the Makadi and Fayoum destinations. In Montenegro, we have started the construction of the new apartment buildings comprising 48 apartments and we are planning to partially open the marina in the summer of 2017. In Oman, we are progressing with the launch of phase 1 of the Sifah Golf course, expediting unit deliveries and revisiting the master plans for Salalah and Sifah to optimize more land use.
Hotels
We are on track with the construction of the Ancient Sands hotel in El Gouna, the Byoum hotel in El Fayoum, the Al Fanar Hotel in Oman and the Cove Extension in UAE. All hotels are planned to open by 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 the lost business from other source markets and we will continue to cut more on costs in Taba until the situation returns back to normal.

Presentation
The associated financial statements and presentation can be found on Orascom Developments' website www.orascomdh.com under the Investor Relations section.

Telephone conference today at 2:00 pm CET  
A telephone conference for analysts and investors will be held in English today at 2:00 pm CET. CEO Samih O. Sawiris, CFO Eskandar Tooma and Chief Hotel Officer Abdelhamid Abouyoussef will present the 9M 2015 results and will be available to answer questions. A registration is not required.
Dial-in details are as follows: 
* Password:         93517883
*  International:    +44 (0)207 192 8000
*  Switzerland Toll Free: 0800 920 016
*  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:   93517883
* International Replay #:  +44 1452 550 000  
* UK Local Call Replay #:  08717 000 145
* USA Toll Free Replay#:  1866 247 42 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

Disclaimer & Cautionary Statement
The information contained in this e-mail, its attachment and in any link to our website indicated herein is not for use within any country or jurisdiction or by any persons where such use would constitute a violation of law. If this applies to you, you are not authorized to access or use any such information. Certain 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.



Contact:
Contact Investor Relations 
Sara El Gawahergy  +201002185651
ir@orascomdh.com

Contact Media Relations
media@orascomdh.com

End of ad hoc announcement

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2015-11-19 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         
 
 
End of News    EQS Group News Service  
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