Orascom Development Egypt’s (ODE) revenues recorded a solid 39.2% increase to EGP 2.4bn in the first nine months of 2018 (9M18) compared to EGP 1.7bn in 9M17, according to the company’s financial results on Monday.
“Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) soared by 49.2% to reach EGP 987.5m with a 41.2% margin. Meanwhile, adjusted net income excluding one-offs increased by 229.7% to reach EGP 306.6m in 9M18 compared to EGP 93.0m in 9M17 (one offs include: FX losses or gains along with any non-operational one-off transactions),” the report read.
Furthermore, the reported net income reached EGP 274.1m in 9M18 compared to EGP 268.8m in 9M17.
“CBRE report values El Gouna hotels and undeveloped land at $2.1bn, 42 times its current book value,” the report pointed out. “Full official launch of our newly 1,000-feddan project in Sixth of October (O-West) in first quarter (Q1) 2019.”
The company’s cash flow from operations increased by 128.5% to EGP 763.1m in 9M18.
ODE’s net real estate sales reached EGP 1.7bn in 9M1818, a significant growth of 78.2% year-over-year, the highest in ODE’s history.
The financial results report showed that the ODE’s real estate revenues recorded a 59.4% increase to EGP 679.5m supported by increased unit deliveries in El Gouna.
The report said that hotels revenues recorded a 37.6% increase to EGP 1.0bn with a 45.7% increase in gross operating profit (GOP) to EGP 415m. Town management revenues increased to EGP 418.8m , a 34.1% increase compared to 9M17.
Furthermore, the report said that the company’s hotels revenues increased by 37.6% to EGP 1bn in 9M18 compared to EGP 734.1m in 9M17, accompanied by a 45.7% increase in GOP to EGP 415m in 9M18 compared to EGP 284.8m in 9M17.
The segment’s Adj. EBITDA continued to increase by 48.6% to EGP 461.4m compared to EGP 310.6m in 9M17.
“The value of our net real estate sales broke the company’s historical record to reach EGP 1.7bn, a growth of 78.2% over last year which was EGP 978m. Revenues recorded a 59.4% increase to EGP 679.5m supported by unit deliveries in El Gouna,” the company said. “Total deferred revenue from real estate that are yet to be recognised increased by 80.1% to reach EGP 2.5bn compared to EGP 1.4bn in 9M17. It is also important to note in addition to the outstanding deferred revenue balance, the Group also has a deferred interest income of EGP 247.4m.”