Earnings watch: Egyptian Resorts Company and Raya Contact Center
EARNINGS WATCH- Egyptian Resorts Company (ERC) reported a consolidated net profit of EGP 66.1 mn in 1Q2017, up from a net loss of EGP 1.4 mn in the same period last year. Revenues increased to EGP 121.3 mn in 1Q2017, up from EGP 10.3 mn in 1Q2016, on the back of revenue recognized from the sale of land plots. The company’s management notes that, “As Sahl Hasheesh becomes one of the fastest growing Red Sea coastal destinations in Egypt, the company’s growth in sales follows management’s successful strategy of controlling the supply of the company’s land bank starting late 2015 — during which major land sales were halted — with the aim of maximize its future value.”
In its maiden earnings as a publicly traded company, Raya Contact Center (RCC) reported a fivefold year-on-year jump in consolidated net profits to EGP 40.2 mn in 1Q17, up from EGP 8.0 mn in 1Q16. Revenues for the quarter were up 87.6% y-o-y to EGP 174 mn, up from EGP 92.8 mn during 1Q16. “ Revenue growth for the quarter was driven by our push for organic expansion over the course of FY2016 — and as we capitalized on our global price-competitiveness as an Egyptian service exporter following the devaluation of the Egyptian pound in November 2016. Offshore revenues grew 105.5% y-o-y in 1Q17 to EGP 138.3 mn, representing c. 80% of total revenues in the period. Our revenue mix continued to be dominated by our outsourcing segment, which generated some 77.6% of our total revenue in 1Q17, followed by our hosting services at 13.7% and insourcing at 8.7%,” said RCC CEO Reem Asaad.