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Orco sees €199 mln losses

Due to the economic conditions and the conservative approach of valuation of projects put on hold, the real estate portfolio value of CEE property developer Orco stood at €1.83 billion as opposed to €2.13 billion at the end of 2008, a 12% decrease after correction of scope variations.

According to the periodical report published on the website of the Budapest Stock Exchange, the company’s net asset value stood at €15.0 per share as at end of June, 2009 against €42.5 last December.

Consolidated revenue increased by 16.8% to €132 million due to increased sales in residential and commercial development.

Adjusted EBITDA was up 7% to €11.4 million, thanks to the cost reduction plan launched at the end of 2008. Total group net result amounts to €-199.9 million, mainly impacted by non-cash valuation adjustments on properties and developments for €-252.2 million. Orco ended the period with €66.8 million in cash and cash equivalents; the statement said. (press release)