Orascom Development Q1 profit falls 22%

17 May 2010

(MENAFN) Orascom Development announced that its quarterly profit fell 22 percent to $15.2 million, down from $19.33 million a year earlier, after its rate of new home completions slowed, Reuters reported.

The company, known mostly for building and managing high-end resorts, said revenue from its real estate and construction operations dropped 17 percent in the first quarter, contributing to an 8 percent fall in overall revenue.

Revenue from Orascom’s hotel business cushioned the fall, jumping 28 percent. The firm said occupancy rates were boosted by a nascent recovery in tourism from the global economic downturn.

Orascom owns land across the Middle East and Europe, and has said it expects projects in Morocco, Britain, Romania, Switzerland and Montenegro to drive future profits.

Orascom is owned and run by billionaire Egyptian businessman Samih Sawiris.

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