Madinaty city developed by Talaat Moustafa Group Holding, Photo: Madinaty
Real estate developer the Talaat Moustafa Group (TMG) Holding saw a 3.6 percent fall in its consolidated net profits for the first nine months of 2013 compared to the previous year, reported the Egyptian stock exchange.
TMG achieved consolidated net profits of some LE417.8 million in the first three quarters of 2013, down from LE433.4 million in the same period in 2012.
The company witnessed an increase of 27.8 percent in its housing unit sales in the period between January and September of 2013 to LE4.6 billion, compared to LE3.6 billion in the same period a year earlier.
TMG management has estimated gross sales for 2013 will reach LE6 billion, but the Cairo-based investment bank Beltone Financial expects sales to surpass that figure, citing strong demand on real estate properties.
In the third quarter ending 30 September, TMG revenue came in at LE837 million, a decline of 6.7 percent from the previous quarter but a rise of 2.3 percent year-on-year.
"The figure missed our estimate of LE957 million...which is likely attributable to lower deliveries during the quarter on the back of the imposed curfew and escalated political instability," read a statement by Beltone.
"We believe the contribution of hospitality revenue to total revenue dropped q-o-q mainly on the instability in Egypt, especially during 3Q2013. We believe the hospitality segment could improve in 4Q2013 as the political situation somewhat stabilises," added the statement.