Orascom Development (Photo: Ahram Online archive)
Swiss-listed Orascom expects to post a full-year net loss, as Egyptian tourism suffers setbacks to a fragile recovery from three years of political upheaval, the operator of tourist resorts and real estate projects in Egypt and Europe warned on Wednesday.
The death of two holidaymakers near one of Egypt's biggest sun-and-sea resorts last month dashed hopes for a turnaround in Egypt's tourism industry from 2013, when the ousting of President
Mohamed Morsi and the killing of hundreds of his supporters tipped the sector back into crisis.
The group said revenue would fall by as much as one-fifth and its net loss would widen to between 145 million and 160 million Swiss francs ($166 million and $183 million), from a 97 million franc year-ago net loss.
Specific factors hitting Orascom include lower capitalisation of financing costs, the devalued Egyptian currency, but also impairments on investments and a review of its taxation, the company said.
Orascom, run by Egyptian billionaire Samih Sawiris, a member of Egypt's richest family, reports full earnings on April 15.
Orascom shares fall 3.6 percent following the net loss warning.