CAIRO: Egyptian developer Sixth of October Development and Investment Company (SODIC) posted a first quarter net loss of LE 10.9 million ($1.94 million), well below analysts’ expectations.
Forecasts from three analysts polled by Reuters had ranged from a net profit of LE 15 million to LE 75.8 million.
The high-end real estate firm, which does not fully recognize revenues until it delivers units, made a first quarter net loss of LE 8.3 million last year, the stock exchange said on Wednesday.
SODIC has yet to release a detailed financial statement. Company officials told Reuters last month the firm’s first quarter sales jumped to LE 750-800 million, nearly as much as in all of 2009.
"From looking at the bottom line, I think this largely goes back to the fact that the company’s revenue recognition is based upon delivery and one of the main projects, Allegria, they’re expected to begin delivering from the second half of this year," said Khalil Khalil, an analyst at Beltone Financial.
"Not until then will we see on a consolidated basis actual net profits," he said.
The firm’s shares closed 4.9 percent down. The main index closed down 4 percent.