REG - Etalon Group PLC - Etalon Group Reports 3Q 2017 Operating Results <Origin Href="QuoteRef">ETLNGq.L</Origin>

EtalonAnnouncement

16/10/2017 08:30

RNS Number : 6243T
Etalon Group PLC
16 October 2017
16 October 2017
Etalon Group Reports 3Q 2017 Operating Results
ETALON GROUP PLC ("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 and nine months ended 30 September 2017, based on management accounts.
3Q 2017 operating highlights
 New contract sales in 3Q 2017 amounted to 114 ths sqm, up by 7% year-on-year
 New contract sales in rouble terms reached RUB 11,970 million, a 13% year-on-year increase
 Cash collections rose by 42% year-on-year and amounted to RUB 12,433 million 
 Average price per sqm was RUB 105,015, up by 6% year-on-year and by 13% quarter-on-quarter 
 Average down payment increased from 69% in 3Q 2016 to 82% in 3Q 2017
3Q 2017 operating results

3Q 2017
3Q 2016
Change, %
New sales, sqm
113,979
106,661
7%
New sales, mln RUB
11,970
10,575
13%
Number of contracts
2,331
2,069
13%
Average price, RUB/sqm
105,015
99,144
6%
Average price (apartments), RUB/sqm
114,582
110,413
4%
Cash collections, mln RUB
12,433
8,744
42%
Quarterly operating performance

3Q 2017
2Q 2017
1Q 2017
4Q 2016
3Q 2016
New sales, sqm
113,979
122,427
113,646
153,745
106,661
New sales, mln RUB
11,970
11,346
10,248
13,725
10,575
Number of contracts
2,331
2,321
2,082
3,001
2,069
Average price, RUB/sqm
105,015
92,676
90,178
89,272
99,144
Average price (apartments), RUB/sqm
114,582
109,390
111,382
105,928
110,413
Cash collections, mln RUB
12,433
9,283
9,714
11,123
8,744
Mortgage contract developments

3Q 2017
2Q 2017
1Q 2017
4Q 2016
3Q 2016
Share of mortgages
35%
33%
22%
23%
22%
9M 2017 operating highlights
 The number of new contracts increased by 2% year-on-year to 6,734 for 9M 2017
 New contract sales increased by 2% year-on-year to 350 ths sqm, and amounted to RUB 33,564 million
 Cash collections grew by 10% year-on-year to RUB 31,430 million
 Deliveries amounted to 128 ths sqm, up by 36% year-on-year
9M 2017 operating results 

9M 2017
9M 2016
Change, %
New sales, sqm
350,052
342,263
2%
New sales, mln RUB
33,564
33,718
0%
Number of contracts
6,734
6,589
2%
Cash collections, mln RUB
31,430
28,601
10%
Commenting on the 3Q 2017 operating results, Etalon Group President Viacheslav Zarenkov said: 
"Etalon Group has delivered a solid set of results for the third quarter of 2017: new contract sales amounted to RUB 12 billion and 114 ths sqm, outperforming 3Q 2016 results by 13% and 7%, respectively.
"Growth in overall sales and higher average down payments were the main factors driving Etalon Group's strong cash collections performance:the average down payment in 3Q 2017 was 82%, compared to 69% in 3Q 2016 and 79% in 2Q 2017. This increase in down payments was, in turn, supported by the share of mortgage contracts rising to 35% on the back of falling mortgage interest rates.
"We have continued to sell down our existing portfolio of ready property: Etalon Group's inventory of completed and available for sale apartments decreased to 165 ths sqm as of 30 September 2017, compared to 244 ths sqm as of 31 December 2016.
"As expected, new project launches have supported sales performance this year. Silver Fountain, our first business class project in Moscow, was launched in late August and brought 7% of new contract sales in rouble terms in the third quarter. We just recently launched Botanica, a business class project in St Petersburg, about two months after acquiring the project. Botanica and Silver Fountain reflect our strategic shift towards increasing the share of centrally-located, higher-end projects in Etalon Group's portfolio, with a focus on minimising the time between acquisition of a project and launch of sales. 
"Looking ahead, we plan to continue implementing our updated strategy, adding more attractive projects to further diversify our sales portfolio as the Russian market recovers and mortgage lending rates decrease to levels that make housing more accessible to a wider group of Russian consumers."
Conference call and webcast
Etalon Group will host a conference call for investors and analysts today at 15:00 London time (17:00 Moscow; 10:00 New York).
On the call, the Etalon Group management team will present the Company's 3Q 2017 operating and 1H 2017 IFRS financial results, followed by a question and answer session for participants.
Webcast
https://edge.media-server.com/m6/p/mm76yaz3
Dial-in numbers:
+44 20 3427 1905 - London
+7 495 213 0978 - Moscow
+1 212 444 0896 - New York
Conference ID Code: 3379896
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 Etalon LenSpetsSMU subsidiaries. With a 30-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 5.5 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 thousand people, and its nationwide sales and marketing network covers 52 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'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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