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 and nine months ended 30 September 2015, based on management accounts.
3Q 2015 operating highlights
- The number of new contracts in the third quarter increased 29% year-on-year to 2,525
- New sales rose to RUB 11,392 mln and 121,522 sqm, up by 20% and 15% year-on-year, respectively
- Average price per sqm was RUB 93,746
- The share of Moscow Metropolitan Area contracts in sqm was 37%
- The share of mortgage contracts was 15%, compared to 20% in 2Q 2015 and 11% in 1Q 2015
3Q 2015 operating results
|3Q 2015||2Q 2015||1Q 2015||4Q 2014||3Q 2014|
|Number of contracts||2,525||831||1,028||2,752||1,960|
|New sales, sqm||121,522||41,973||46,990||147,042||106,039|
|New sales, mln RUB||11,392||4,110||3,804||13,309||9,480|
|Average price (total), RUB/sqm||93,746||97,918||80,946||90,511||89,402|
|Average price (apartments), RUB/sqm||102,417||105,297||106,228||97,522||93,223|
3Q 2015 year-on-year comparison results
|3Q 2015||3Q 2014||Change|
|New sales, sqm||121,522||106,039||15%|
|New sales, mln RUB||11,392||9,480||20%|
|Number of contracts||2,525||1,960||29%|
|Average price, RUB/sqm||93,746||89,402||5%|
|Average price (apartments), RUB/sqm||102,417||93,223||10%|
9M 2015 operating highlights
- The number of new contracts signed was 4,384 in 9M 2015
- New contract sales of 210,485 sqm and RUB 19,306 mln
- Cash collections for 9M 2015 came to RUB 16,213 mln
9M 2015 Operating Results
|9M 2015||9M 2014||Change|
|New sales, sqm||210,485||310,014||(32%)|
|New sales, mln RUB||19,306||26,652||(28%)|
|Number of contracts||4,384||6,293||(30%)|
|Average price, RUB/sqm||91,721||85,971||7%|
Mortgage contract developments
|3Q 2015||2Q 2015||1Q 2015||4Q 2014||3Q 2014|
|Share of mortgages||15%||20%||11%||23%||28%|
Commenting on the 3Q and 9M 2015 operating results, Etalon Group President Viacheslav Zarenkov said:
“I am very pleased to note that all key operating performance parameters saw double-digit year-on-year increases in 3Q 2015 vs. 3Q 2014. In line with the expectations we have communicated to the market, new contract sales rebounded in 3Q 2015 on the back of new launches at both new and existing projects, while prices per square metre have remained generally stable.
“I would highlight our Landyshi project in St. Petersburg as an illustration of this: we launched sales on the first building in the end of July, and it already accounted for 16% of 3Q sales. Moreover, in just two months 51% of the premises launched had already been sold.
“Looking at 9M 2015 new sales performance, we are ahead of the guidance we provided at the beginning of the year, and we are roughly on par with the new sales volumes booked in 9M 2013. The launch of sales for significant volumes of new NSA planned for the fourth quarter will provide further stimulus to our new contracts.
“We are on track to finish 2015 in good shape, delivering the 500 ths sqm of NSA, maintaining a strong financial position and sufficient landbank. With the solid performance in our target segment of the residential real estate market, Etalon is well positioned to increase market share and consolidate its position as one of Russia’s leading development and construction companies.”
Conference call and webcast
Etalon Group will host a conference call for investors and analysts on the same day at 15:00 London time (17:00 Moscow; 10:00 New York).
On the call, Etalon Group President Viacheslav Zarenkov, CEO Anton Evdokimov, CFO Boris Svetlichny and Head of Corporate Investments and Investor Relations Kirill Bagachenko will present the 3Q and 9M 2015 operating results, followed by a question and answer session for participants.
+44 20 3427 1909 – London
+7 495 213 0978 – Moscow
+1 212 444 0895 – New York
Toll free numbers:
8 800 500 9312 – Russia
0800 279 4992 – UK
1 877 280 1254 – USA
Conference ID Code: 2177428
This and other recent announcements are available on the Etalon Group website: www.etalongroup.com/investors/news/
Etalon Group IR Team
T: +44 20 8123 1328
T: +44 7554 993 032
T: +7 499 918 3134
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 28-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 4.5 million sqm. Etalon Group's CAGR for deliveries in 2010-2014 was 29%.
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 2014 was RUB 636 million.
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 over 5,000 people, and its nationwide sales and marketing network covers 36 Russian cities.
As of 31 December 2014, Etalon Group's portfolio comprised 29 projects, with a total of 3.11 million sqm of unsold net sellable area. Jones Lang LaSalle valued this portfolio at RUB 104,286 million, a 17% increase in the market value from YE 2013.
For the year ended 31 December 2014, Etalon Group's new contract sales totalled 457 ths sqm, or RUB 39,961 million. Deliveries in 2014 totalled 580 ths sqm.
The Company recorded revenue of RUB 51.5 billion and EBITDA of RUB 10.6 billion, with an EBITDA margin of 21% for the year ended 31 December 2014.
Etalon Group Limited's GDRs have been traded on the Main Market of the London Stock Exchange since 20 April 2011.