Orco: 1Q06 figures to be released today

Orco should report its 1Q06 figures today after market close (around 18:00 CET). We expect Orco's sales to increase by 140% y/y driven by a strong growth in the rental (office&residential) segment due to the increased portfolio of office and MMR's segment thanks to expected pick up in the two newly launched MMRs (Pachtuv Palac and Dianna). We also expect development revenues to growth strongly by 138% y/y as the current pipeline assumes increased deliveries in 2006 vs. 2005, nevertheless, we expect the growth in the residential development revenues to accelerate in the coming quarters as the 1Q is seasonally weaker. Thanks to higher achieved sales and stabilization of newly launched activities, we expect Orco to post a profit at the EBIT level against a loss last year. This should lead to a an net income of EUR 4.12m compared to a loss of EUR 3.2m a year ago.

Please note, that y/y comparison is not fully compatible due to changes of methodology.