Orascom Development reports solid revenue growth of 20.0% in the first quarter of 2012 and increased its gross profit margin

Orascom Development Holding AG  / Key word(s): Quarter Results

30.05.2012 06:57

Release of an ad hoc announcement pursuant to Art. 53 KR
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Press Release

Orascom Development reports solid revenue growth of 20.0% in the first
quarter of 2012 and increased its gross profit margin

  - Revenue growth of 20.0% to CHF 63.5 million (1Q 2011: CHF 52.9 million)

  - Improved Gross Profit margin of 11.9% (1Q 2011: 7.5%)

  - Funding for 2012 secured; Capex plan 2012 adjusted to CHF 120 million

Altdorf/Cairo, 30 May 2012 - While the economic activities in the MENA
region (Middle East and North Africa) in total remained subdued during the
first quarter of 2012, tourism in Egypt improved slightly and as such had a
positive effect on Orascom Development's results. Total consolidated
revenues surged by 20.0% and reached CHF 63.5 million (1Q 2011: CHF 52.9
million). Group Gross Profit of CHF 7.6 million increased compared to last
year (CHF 4.0 million), resulting in a Gross Profit margin of 11.9% (1Q
2011: 7.5%). The reported net loss (before non-controlling interests)
amounted to CHF 3.5 million in the period under review, compared to net
loss of CHF 0.3 million last year, because the Group could not build
deferred tax assets for loss-making entities as during 1Q 2011.

Key Financial Figures         Unit     1Q 2011      1Q 2012   Change in %
Total revenues                CHF   52,916,110   63,496,225          20.0
Gross Profit                  CHF    3,959,607    7,565,018          91.1
Gross Profit-Margin             %          7.5         11.9
Net income / (loss) before    CHF    (293,787)   (3,477,564)     (1083.7)
minorities
Total assets ¹                CHF   2,083,215,   2,054,544,         (1.4)
                                           810          339
Shareholder's Equity ¹        CHF   1,095,216,   1,072,161,         (2.1)
                                           884          821
Equity ratio ¹                  %         52.6         52.2
Net debt ¹                    CHF   456,811,717  472,473,677          3.4
Per Share Data
Basic and diluted earnings    CHF         0.02       (0.14)       (755.8)
per share

¹ Balance sheet figures and ratios for 2011 are as of 31.12.2011

Main Business Segments 

Hotels: higher revenues, improved margins 
Revenues in the hotel segment surged by 21.4% and reached CHF 34.1 million
(1Q 2011: CHF 28.1 million). Higher occupancy rates, particularly in our
flagship town El Gouna, combined with an increase in total revenues per
available room (TrevPAR) led to higher revenues. The segment result
increased to CHF 3.4 million, significantly higher than in the previous
year (CHF 0.5 million), corresponding to a Segment Result margin of 10.1%
(1Q 2011: 1.8%). The Group continued to operate 6,589 hotel rooms.

Real Estate: mixed results
Real Estate revenues increased 21.2% and reached CHF 15.6 million (1Q 2011:
CHF 12.8 million). The Segment Result dropped by 58.3% to CHF 1.2 million
(1Q 2011: CHF 3.0 million). During the first quarter of 2012, Orascom
Development sold CHF 27.4 million worth of real estate, which was in line
with last year's level of CHF 27.4 million. The value of deferred income of
CHF 259.5 million remained broadly at the level as of year-end 2011 (CHF
262.2 million) which will positively affect the income statement in the
coming years.

Further reduction in capital expenditures planned
In January credit agreements of CHF 125 million were finalized which will
enable the Group to finance its operations in 2012. During the first
quarter of 2012, around CHF 28 million were drawn from this amount. At the
same time, the capital expenditure program for 2012 was adjusted by 15-20%
from CHF 140-150 million to CHF 120 million as some investments in Oman are
postponed to the following years. At the end of May the Group signed
contracts with third parties to develop a Club Med hotel in Chbika/Morocco
which is an example of how the Group intends to grow in a more capital
light way in the future.

Outlook 2012
Orascom Development estimates that the diversification of its revenues
across different geographical areas will continue and thereby broaden its
operations and diversify the risk. During April 2012 hotel occupancy rates
stood at 68% (April 2011: 62%) and Average Rooms Rates at CHF 71 (April
2011: CHF 71).

Conference call today at 3:00 pm CET 
A telephone conference for analysts and investors will be held in English
today at 3:00 pm CET. The associated presentation and earnings release can
be found on Orascom Development's website www.orascomdh.com within the
Investor Relations section.

  - Dial In International: +44 (0) 1452 55 55 66
  - Toll Free UK: 0800 694 0257,
  - Toll Free Switzerland: 0800 828 006,
  - Toll Free US: 1866 966 9439 and
  - Toll Free Egypt: 0800 000 0318
  - Conference password: 60 39 30 55


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Information and Explaination of the Issuer to this News:

About the Group 

Orascom Touristic Establishments (OTE) was established in 1989 setting the
first step in building the Group's track record in the development of
integrated towns. After some name changes and reorganization, the main
business was held under Orascom Hotels & Development (OHD). Since the
settlement of the public exchange offer by Orascom Development for OHD in
May 2008, Orascom Development Holding AG (Orascom Development) became the
new parent of OHD. Orascom Development has a dual listing, with a primary
listing on the SIX Swiss Exchange and a secondary listing on the EGX
Egyptian Exchange. 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 nine jurisdictions (Egypt, UAE, Jordan, Oman, Switzerland,
Morocco, Montenegro, United Kingdom and Romania), with primary focus on
touristic destinations and budget housing. The Group currently operates
five destinations; three in Egypt El Gouna, Taba Heights and Haram City,
The Cove in United Arab Emirates and Jebel Sifah in Oman.


Investor Relations Contacts 

Till Leisner        
Head of Group Controlling & Investor Relations
Tel: +41 41 874 88 07 
Email: ir@orascomdh.com

Mamdouh Abdel Wahab
Director Investor Relations
Egypt Mobile: +20 122 315 3200
Swiss Mobile : +41 79 846 55 60     
Email: ir@orascomdh.com

Media Contact
Philippe Blangey
Tel: +41 41 874 17 11
Email: media@orascomdh.com

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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.




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Language:               English
Company:                Orascom Development Holding AG
                        Gotthardstraße 12
                        6460 Altdorf
                        Switzerland
Phone:                  +41 41 874 17 11
Fax:                    +41 41 874 17 12
E-mail:                 ir@orascomdh.com
Internet:               www.orascomdh.com
ISIN:                   CH0038285679
Swiss Security Number:  A0NJ37
Listed:                 SIX
 
End of Announcement                             EquityStory News-Service
 
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