Cairo - Mubasher: Egyptian Resorts Company achieved a net revenue of EGP 126.3 million during fiscal year 2018; this was 55% year-on-year lower when compared to EGP 281.1 million registered in 2017.
Egyptian Resorts, one of Egypt’s leading master and real estate developers, said that the decline in FY18 net revenue reflects the company’s decision to halt land sales during the past year as part of its strategy of business expansion, according to a recent press release.
The company, listed on the Egyptian Exchange (EGX) further added that the revenue contraction indicates to its strategy of an increasing focus on residential and commercial real estate development as the main growth driver going forward.
During the past fiscal year, revenues from real estate projects accounted for 22% of the company’s top-line when compared to the 14% contribution in FY17.
Egyptian Resorts clarified that land sales had contributed the bulk of the company’s revenues at 60% in fiscal year 2017 when compared to zero contribution in FY18.
Driven entirely by the real estate and recurring income activities of the EGX-listed company, the top-line would record an 11% year-on-year increase in FY18.
“Management has allocated significant resources to help deliver on its objectives, including the build-up of the organisational capacity required to focus on a business-to-consumer (B2C) market as compared to its business-to-business (B2B) activities,” Egyptian Resorts said.
Egyptian Resorts has focused on developing its sales, marketing, as well as customer service capabilities to better promote its existing and planned offerings, in addition to offering its customers the best-in-class services.
“In line with Egyptian Resorts Company’s efforts, the company inaugurated its first sales showroom in Sahl Hasheesh in the Old Town commercial district, and is aggressively building its direct and indirect sales network,” the EGX-listed firm added.
