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Orco Property Group books EUR 7.5m loss in H1

Orco Property Group, listed on the Budapest Stock Exchange, had a net loss of €7.5 million in the first half, compared to net income of  €237.7 million in the same period a year earlier, when financial income lifted the bottom line, the company's IFRS report published late Wednesday shows.

Revenue plunged 55% to €73.6 million. Cost of goods sold was down 81% at €16.9 million. Operating profit was halved to €18.9 million.

Orco booked EUR 5.6m on the "other net financial results" line, compared to €255.4 million in H1 2010, a figure well over the company's revenue during the period.

Orco had total assets of €1.81 billion on June 30, down 5% from the end of 2010. Non-current liabilities fell 49% to €463.1 million.

Orco Property Group said earlier on Wednesday that it agreed to sell its assets in Russia for €53 million pursuant to a restructuring strategy.

The properties in the deal are valued at about €7 million, but the sales agreement contains a provision entitling Orco to a percentage of future sales which "should result in Orco reaching or exceeding the existing valuation", the company said.

"We continue to implement our strategy to focus on our four core cities of Prague, Berlin, Warsaw and Budapest," Orco said.