REG - Etalon Group Limited - Etalon Group Reports 1Q 2017 Operating Results <Origin Href="QuoteRef">ETLNGq.L</Origin>

EtalonAnnouncement

13/04/2017 07:30

RNS Number : 3884C
Etalon Group Limited
13 April 2017
13 April 2017
Etalon Group Reports 1Q 2017 Operating Results
Etalon Group Limited ("Etalon Group" or the "Company"), one of Russia's largest and longest-established development and construction companies, announces its unaudited operating results for the three months ended 31 March 2017, based on management accounts.
1Q 2017 operating highlights
 New contract sales amounted to RUB 10,248 million and 113,646 sqm 
 The number of new contracts was 2,082
 Cash collections totalled RUB 9,714 million
 The average price per sqm was RUB 90,178, up 1% compared to 4Q 2016
 The average price per sqm for apartments increased by 5% quarter-on-quarter to RUB 111,382
1Q 2017operating results 

1Q 2017
4Q 2016
3Q 2016
2Q 2016
1Q 2016
Number of contracts
2,082
3,001
2,069
1,886
2,634
New sales, sqm
113,646
153,745
106,661
100,599
135,003
New sales, mln RUB
10,248
13,725
10,575
10,284
12,860
Cash collections, mln RUB
9,714
11,123
8,744
9,286
10,571
Average price, RUB/sqm
90,178
89,272
99,144
102,223
95,254
Average price (apartments), RUB/sqm
111,382
105,928
110,413
111,966
105,040
1Q 2017 new sales monthly performance

March 2017
February 2017
January 2017
New sales, sqm
48,000
34,761
30,884
New sales, mln RUB
4,168
3,262
2,818
Mortgage contract developments

1Q 2017
4Q 2016
3Q 2016
2Q 2016
1Q 2016
Share of mortgages
22%
23%
22%
21%
20%
Commenting on the 1Q 2017 operating results, Etalon Group President and CEO Viacheslav Zarenkov said: 
"Our 1Q 2017 operating results are in line with our expectations and represent a solid performance, even in the context of the exceptional numbers that Etalon Group delivered in 1Q 2016. The high base effect created by the first quarter of last year was due to buyers, who had put off purchases during 2015, returning to the market. This was further enhanced by several new projects that we launched during and preceding 1Q 2016. 
"Moreover, I would like to highlight steady growth in our 2017 operating performance on a month-by-month basis, which puts us well on track to achieve our full year target of a 20% year-on-year increase in the value of new contracts signed.
"Another important development in 1Q 2017 was the further growth in cash conversion of new sales, with our average down payment reaching 74%.
"The share of mortgage contracts increased year-on-year to 22%, and we expect this to grow further as interest rates continue to decline. 
"Looking ahead to the rest of 2017, I expect recently launched projects like Normandy in Moscow and Fusion in St Petersburg, as well as new projects and new buildings at existing projects, will further support our operating performance in 2017."
Conference call and webcast
Etalon Group will host a conference call for investors and analysts today at 14:00 London time (16:00 Moscow; 9:00 New York). 
On the call, the Etalon Group management team will discuss the Company's 1Q 2017 operating performance as well as its 2H 2016 financial results.
Webcast
http://edge.media-server.com/m/p/cgh92qic
Toll numbers:
+44 20 3427 1903 - London
+7 495 213 0979 - Moscow 
+1 646 254 3363 - New York 
Toll free numbers:
0800 279 5004 - UK
8 800 500 9311 - Russia 
1877 280 2296 - USA 
Conference ID Code: 5743563
This and other recent announcements are available on the Etalon Group website: http://www.etalongroup.com/investors/news/
Etalon Group IR Team
T: +44 20 8123 1328
E: info@etalongroup.com
EM
Sam VanDerlip 
T: +44 7554 993 032
T: +7 499 918 3134
E: vanderlip@em-comms.com
About Etalon Group
Founded in 1987 by Viacheslav Zarenkov, Etalon Group has become one of Russia's largest development and construction corporations. The Company focuses on middle class residential real estate in the Moscow and St. Petersburg metropolitan areas, where it operates through Etalon Invest and LenSpetsSMU subsidiaries. With a 29-year history, Etalon Group has one of the longest and most successful track records in the Russian real estate industry - since its inception, Etalon Group has commissioned 5.4 million sqm.
Etalon Group's strong reputation among consumers supports its pre-sales business model, which helps the Company to minimise external financing needs for on-going projects while maintaining a secure liquidity position: net debt as of 31 December 2016 was RUB 7.8 billion.
The Company is vertically integrated, which helps it to control costs, quality and timing, as well as to demonstrate best-in-class profitability. Etalon Group employs 5,000 people, and its nationwide sales and marketing network covers 49 Russian cities.
As of 31 December 2016, Etalon Group's portfolio comprised 35 projects, with a total of 2.82 million sqm of unsold net sellable area. JLL valued this portfolio at RUB 115,818 million.
For the year ended 31 December 2016, Etalon Group's new contract sales totalled 496 ths sqm, or RUB 47,443 million. Deliveries in 2016 amounted to 420 ths sqm.
The Company recorded revenue of RUB 49.0 billion and EBITDA of RUB 7.3 billion for the year ended 31 December 2016.
Etalon Group Limited's GDRs have been traded on the Main Market of the London Stock Exchange since 20 April 2011.

This information is provided by RNS
The company news service from the London Stock Exchange
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