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Orco reschedules debt, cuts Q1 losses

Budapest Stock Exchange-listed property developer Orco sustained net losses of €15.6 million in the first quarter of 2010, down from net losses of €45.7 million in Q1 of 2009 and net losses of €49.3 million in the final quarter of last year, the company reported on Thursday evening.

Orco said that the company had cut its financial losses to €25.7 million from €58 million in Q1 of 2009 and €33.4 million in the final quarter of last year as a result of a restructuring of the company's bank loans.

Q1 revenue dropped 6% to €51.5 million from €54.8 million in Q1 of 2009 and €64.7 million in Q4 of last year. The company attributed the decline in revenue to the sale of assets and the departure of major tenants from office buildings. The report noted that revenue fell €3.3 billion while expenses fell by €6.6 billion related to the decrease in the costs of goods sold, employee benefits and other operating costs.

The company targets total revenue of between €280 million and €300 million in 2010, compared to revenue of €251.5 million in 2009.

Orco posted operating profit of €5 million in the first quarter of 2010, compared to operating losses of €1.4 million in Q1 of 2009 and operating losses of €5.7 million in the final quarter of last year.

Adjusted EBITDA rose to €8 million in the first quarter of 2010 from €5.6 million in Q1 of 2009.

Total assets fell to €2.06 billion on March 31, 2010, compared to €2.07 billion on December 31, 2009, and equity attributable to owners fell to €51.1 million from €56.6 million at the end of last year. (MTI-Econews)