Real estate, hotels and telecommunications holding Orascom Development reported a slump in first-quarter net profit, hit by Egypt’s political turmoil. The Swiss-listed company, known mostly for building luxury resorts in Egypt, said on Monday net profit fell to 0.6 million Swiss francs from 26.5 million a year earlier.
The figures were for net profit after non-controlling interests. "Financial results of Orascom Development for the period ending 31 March 2011 were heavily impacted by the political turmoil in Egypt while the performance in other destinations was solid," the company said on its website. Consolidated revenue fell by 55 percent to 52.9 million francs.
Orascom’s plans to build a huge holiday resort in Montenegro, have also been put on hold, and other projects in Morocco and Egypt are likely to follow suit.