Orco Property Group, one of the biggest developers in the CEE region, had losses of EUR 463.8m in 2008 as the value of its properties fell and financial losses grew, the company’s consolidated IFRS report reveals.
Orco had net profit of EUR 100.9m in 2007.
Orco’s 2008 revenue was EUR 300.0m, practically level with that in 2007, but it wrote off EUR 217.0m on the value of it its investment property in 2008, compared to a EUR 147.4m gain in 2007. Financial losses increased to EUR 127.6m from EUR 73.9m. Amortisation, impairments and provisions grew to EUR 188.6m from EUR 17.0m.
Operating losses came to EUR 386.8m compared to operating profit of EUR 177.1m a year earlier.
Orco said earlier that it filed for bankruptcy protection with a French court on March 25.
On Tuesday, the company said it was accelerating its strategic and restructuring plan, refocusing on its main businesses and locations and exiting non-core businesses, restructuring with the aim of deleveraging, and streamlining to cut costs.
Orco will postpone work on two office developments in Budapest, but it will continue until completion two other projects in historical buildings in the city centre, Orco Budapest communications director Zita Havasi told MTI earlier.