Orascom Development Egypt (ODE) kicked off 2025 with a robust financial performance, recording a 54% year-on-year increase in revenues to EGP 6.4 bn, Invest-Gate reports.

The group’s adjusted EBITDA more than doubled, surging by 116% to EGP 3.4 bn with a margin of 52.7%, up from 37.7% in Q1 2024.

Net profit came in at EGP 2.0 bn, a significant turnaround from a net loss of EGP 1.0 bn in the same period last year. The strong results were buoyed by improved operational efficiency, a resilient hospitality segment, and the EGP 1.6 bn land sale in El Gouna to Hassan Allam, finalized in late 2024.

Recurring income streams played a key role, generating EGP 2.1 bn in revenues, up 59% y-o-y. Hospitality revenues climbed 68% to EGP 1.2 bn, driven by higher room rates and stable occupancy despite seasonal pressure from Ramadan and ongoing regional instability.

“Despite the macroeconomic headwinds, our performance across hospitality, commercial assets, and real estate reinforces the resilience of our business model,” the company said in a statement.

The commercial assets segment also posted strong results, with revenues rising 49% to EGP 950.9 mn. Adj. EBITDA from the segment reached EGP 361.4 mn, up 52%, as restructuring initiatives paid off.

In real estate, ODE recorded EGP 4.1 bn in net contracted sales from 131 units sold. Although sales declined from EGP 8.8 bn in Q1 2024 due to fewer launches, international markets accounted for 43% of Q1 2025 sales. Deferred real estate revenue jumped 38% to EGP 38.6 bn, while total receivables hit EGP 51.9 bn.

Real estate revenue slightly dipped by 2.7% to EGP 2.8 bn due to prioritising apartment handovers in O West. However, revenues are expected to rise in the next quarter as construction accelerates.

Cash flow from operations stood at EGP 1.8 bn, while total cash balance reached EGP 7.6 bn, including USD 80.2 mn in foreign currency.

ODE said it will continue to monitor market trends to adjust pricing strategies, with El Gouna contributing 74% of real estate sales in Q1, followed by O West (15%) and Makadi Heights (11%).