Ad-hoc | 16 May 2016 07:00
Orascom Development Holding AG: gives guidance for the Group 1Q 2016 results and for the results of its Largest Subsidiary; Orascom Hotels and Development (OHD)
|
EQS Group-Ad-hoc: Orascom Development Holding AG / Key word(s): Miscellaneous/Miscellaneous
Press Release Orascom Development Holding (ODH) Gives Guidance for Q1 2016, and Reports Q1 2016 Results for its Egyptian Largest Subsidiary; Orascom Hotels and Development (OHD) Orascom Development Holding expects to report a 17-20% decrease in its consolidated revenues for the First Quarter 2016 compared to the same period last year. ODH expects a net loss in the range of CHF 26-28 million compared to a net profit of CHF 3.4 million in Q1 2015. The full-fledged Q1 2016 financial results & statements will be published as announced on the 19 th of May. Management will also hold the earnings conference call on the same day at 1:30 pm CET. We have attached below Orascom Hotels and Development (OHD)’s Q1 2016 earnings release as reported on the Egyptian Stock Exchange. OHD (‘Orascom Hotels and Development’) (EGX ORHD.CA) has released its consolidated financial results for its three months ended 31 st of March 2016. Orascom Hotels and Development; Egypt’s Premier Resort Developer Results were impacted by FOREX Losses and Decrease in Land Revenues. – Revenues decreased by 37.3% to reach EGP 284.0 million compared to EGP 453.3 million in Q1 2015, mainly resulting from the decrease in land revenues. – An increase in real estate revenues by 11.5% in Q1 2016 to reach EGP 66.1 million compared to EGP 59.3 million in Q1 2015, on the back of expedited deliveries. – A tough beginning for the hotel segment, resulting from the continuous flight suspensions on Egypt by Russia amongst other European countries, yet still outperforming the market. – On track with the refinancing package negotiations with the banks, opting for a 3 years grace period, to be finalized by June/July 2016. – Successfully launched El Gouna ‘State of Mind’ marketing campaign and positioning Cairo, 16 May 2016 -Orascom Hotels and Development (OHD) reported a decrease of 37.3% in its revenues to reach EGP 284.0 million compared to EGP 453.3 million in Q1 2015. The real estate revenue witnessed a healthy increase of 11.5% from Q1 2015, on the back of accelerated unit deliveries. Hotel segment operations witnessed a slowdown resulting from the ongoing travel bans on Egypt, yet our hotels in El Gouna were still able to outperform the market. The drop in total revenues was mainly driven by the decrease in the land revenue segment to reach EGP 29.0 million compared to EGP 189.2 million in Q1 2015.
Total deferred revenue from real estate that is yet to be recognized until 2018 increased significantly by 49.6% from to EGP 452.7 million in Q1 2015 to EGP 677.3 million in Q1 2016. Based on the positive momentum witnessed in the real estate segment, the company decided to be more selective in terms of land sales moving forward, opting to create the maximum value possible for its shareholders.
On the other hand, we successfully launched El Gouna ‘State of Mind’ marketing campaign and have received very positive reviews from several marketing critique channels. Real Estate revenues witnessed a positive increase of 11.5% to reach EGP 66.1 million vs. EGP 59.3 million in Q1 2015 driven by the expedited unit deliveries in Joubal project in El Gouna. The accelerated construction activities was one of the main achievements of the quarter, which allowed earlier recognition of revenues and earlier cash collection of the 10% client delivery payment. We managed to deliver more units in Joubal during the quarter than what was originally planned. We are currently at the final stages of finalizing the design for Makadi’s Clubhouse, permits have been submitted and construction commenced on site in April 2016. Value of contracted units declined to reach EGP 92.4 million in Q1 2016 compared to EGP 115.7 million in Q1 2015. Nevertheless, we are currently capitalizing on the great success of the newly launched Fanadir Bay project in El Gouna that we launched in April 2016 with a total inventory of USD 60.0 million.
Deferred revenue has increased by 49.6% to reach EGP 677.3 million in Q1 2016 compared to EGP 452.7 million in Q1 2015. In addition, our real estate cash collections reached EGP 83.6 million in Q1 2016.
Egyptian Government officials reported a 45% decline in the number of foreign tourists and a 67% decline in the tourism revenue in Q1 2016 compared to the same period last year. However, El Gouna’s diversified market segmentation, limited the magnitude of this industry stance to only a 15% decline in its hotels occupancy from 62% in Q1 2015 to 53% in Q1 2016 and an 11% decline in TRevPAR from EGP 373 in Q1 2015 to EGP 332 in Q1 2016. We also successfuly opened the new Ancient Sand Hotel in El Gouna, in April 2016 with 56 rooms. Makadi was still heavily affected by the ongoing Russian travel bans and is still operating at 44% of its capacity since Q4 2015. Nevertheless, Orascom Hotel Management ran special promotional campaigns of the destination in Germany to cope with the decline in demand. These promotions, coupled with the profound business cooperation with FTI, the major German tour operator, resulted in an 83% increase in the number of German room-nights growing from 6,000 in Q1 2015 to more than 11,000 this quarter. We continued to implement drastic cost cutting measures in Taba Heights, our mostly challenged destination to date given the extended travel bans on Sinai by all major European countries. The savings initiatives taken so far are expected to generate total cost savings of EGP 27.0 million in FY 2016. Furthermore, we centralized all hotel and destination management cost centers in Taba, starting from the 1 st of March 2016 which is expected to promote further operational and cost savings down the road.
The segment revenues decreased by 29.8% to reach EGP 85.6 million vs. EGP 121.9 million. TrevPar reached EGP 249 vs EGP 281. Foreign exchange losses has negatively impacted our Hotels EBITDA further this year. In Q1 2016, the foreign exchange accumulated a total loss of EGP 37.9 million compared to a total gain of 4.5 million in Q1 2015.
Real Estate
Hotels
Debt
Presentation
Telephone conference hosted by CI Capital today at 3:00 pm CLT
Dial-in details are as follows: – Conference ID: 9727530 – International: +44(0) 1452 555566 A replay of the conference call will be available until 4.00 pm GMT on 23 May 2016 with the following dial in details: – Access Code: 9727530 – International Replay: +44 (0) 1452 550000
About Orascom Hotels and Development (OHD)
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 Hotels and Development’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 Hotels and Development’s results of operations and on whether Orascom Hotels and Development will achieve its targets. Orascom Hotels and Development 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. End of ad hoc announcement 2016-05-16 News transmitted by Tensid EQS AG. www.eqs.com The issuer is responsible for the contents of the release.
|
|||||||||||||||||||||||||||||||