Orascom Development Holding (ODH) gives an update on its key destination El Gouna (Egypt): Q2 2020 sales increase by 27.4% to CHF 54.4 million and its hotels receive the full safety, sanitation, and hygiene audit confirmation from TÜV Nord.
Altdorf, 13 July 2020 - Orascom Development Holding would like to update its investors and shareholders on the strength of its business model and financial position in the height of the economic downturn brought by the Covid-19 outbreak. ODH's management continues to carefully monitor the situation and believes that the company is well prepared to overcome the current potential volatility in the business environment and the slowdown of economic activity that is caused globally.
El Gouna Real Estate
Demand for El Gouna remained strong; recording a boost in its sales progress with a 27.4% increase in total contracted and reserved units during Q2 2020 compared to Q2 2019. Total contracts and reservations for El Gouna reached CHF 54.4 million (CHF 47.2 million contracted and CHF 7.2 million reservations) compared to CHF 42.7 million in Q2 2019. The delay in converting the pending reservations to contracts resulted from the social distancing procedures put in place for the Covid-19 pandemic.
ODH is continuing to speed up the construction pace in El Gouna, deploying 100% capacity at the construction sites, complemented by all the necessary precautionary and safety measures. The company increased its construction budget for the destination this year to CHF 64.7* million, which is expected to generate real estate revenues within the range of CHF 112-123* million for 2020.
ODH is planning to deliver 254 units this year with main deliveries happening in Abu Tig Hill, Tawila, Ancient Sands, Cyan and Sabina.
It is worth noting that the company had a deferred revenue balance of CHF 530.2 million as of Q1 2020, which increased during the second quarter driven by the new sales. The deferred revenue remains solid and fully funded, providing concrete visibility on future cash flows and earnings. This backlog will result in total "Real Estate Portfolio Receivables" of CHF 651.4 million. Deferred revenue relates to sold and contracted real estate units that are either under construction or where construction will be carried out in the following years.
El Gouna Hotels
Following the recently released governmental regulations which allowed hotels that put in effect strict sanitation and hygiene protocols to operate with limited occupancy levels, the Group is proud to announce that its health and sanitation protocol were recently audited and confirmed by TÜV Nord, a German organization that work to validate the safety of products and services of all kinds to protect humans, material assets and the environment against hazards. This confirmation reflected positively on the international booking trend and will continue to reflect positively on the group's hotels forward booking.
* EGP/CHF rate used as of 30/6/2020.
About Orascom Development Holding (ODH):
Orascom Development Holding (ODH) 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 seven jurisdictions (Egypt, UAE, Oman, Switzerland, Morocco, Montenegro, and United Kingdom), with primary focus on touristic destinations. The Group currently operates nine destinations: four in Egypt (El Gouna, Taba Heights, Fayoum and Makadi Heights), The Cove in the United Arab Emirates, Jebel Sifah and Hawana Salalah in Oman, Luštica Bay in Montenegro, and Andermatt in Switzerland. The shares of Orascom Development Holding (ODH) are listed on the SIX Swiss Exchange.
Contact for Investors:
Sara El Gawahergy
Head of Investor Relations & Strategic Projects Management
Tel: +202 246 18961
Tel: +41 418 74 17 11
Mob: +41 79 156 78 49
Email:ir@orascomdh.com
Contact for Media Relations:
Philippe Blangey
Partner
Dynamics Group AG
Tel: +41 432 68 32 35
Email: prb@dynamicsgroup.ch
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