(2014-05-28) Orascom Development Holding AG Back to profits, posts CHF 5 m for 1Q2014
Orascom Development Holding AG (ODHN) announced, in an press release, that it returned to profitability in 1Q2014. The net profit attributable to shareholders of the company was CHF 5.0 million after a CHF 19.1 million loss in the comparable period. Notably, this marked the first quarterly profit since 1Q 2011, the beginning of the Egyptian Revolution. Key drivers of this result were a 21% revenue growth on the back of enhanced Real Estate & Construction activity as well as gains related to the settlement of various litigation cases. Benefits from the Group-wide cost savings program are materializing, and the ongoing review and carve-out of certain un-profitable and non-core business lines will further reduce the cost base and will help in achieving the communicated CHF 50 m savings target. The company added that the result was partly due to lower foreign exchange losses and gains related to the gains related to the settlement of various litigation. The adjusted EBITDA for the period was CHF 9.5 million compared to 1Q2013 EBITDA of 4.3 m. The hotel segment continued to suffer from travel bans issued on Egypt in 1Q2014. The average occupancy rate declined to 42% compared to 56% in 1Q2013 and revenues slipped to CHF 23.6 m compared to CHF 34.9 m in 1Q2013, equivalent to 34% of Group revenues.