StockMarketWire.com - New contract sales at Etalon Group - one of Russia's largest and longest-established development and construction companies - rose by 22% year-on-year to 122 ths sqm in the second quarter with a total value of RUB 11,346 million.

The number of new contracts in the second quarter increased by 23% year-on-year to 2,321 and cash collections amounted to RUB 9,283 million.

The average price per sqm was RUB92,676, up 3% compared to 1Q and the average down payment increased by 5 p.p. from 74% in the first quarter to 79% in the second quarter.

For the six months to the end of June, deliveries increased by 15% year-on-year to 108 ths sqm, transfers rose by 48% year-on-year to 191 ths sqm.

New contract sales totalled RUB 21,594 million and 236,073 sqm.

The number of new contracts was 4,403.

Cash collections amounted to RUB 18,997 million and net debt stood at RUB 9.5 billion as of 30 June.

Group president and chief executive Viacheslav Zarenkov said: "I am pleased with the results that Etalon Group delivered in the first half of 2017.

"Our year-on-year sales performance in 1H 2017 was supported by a very strong second quarter, which helped bring the half-year results on par with the record-setting numbers we saw in the first half of 2016.

"Based on the month-on-month sales dynamics Etalon Group delivered in April-June 2017, I can confirm we are on a positive course towards achieving our full-year guidance.

"With transfers to customers up 48% year-on-year to 191 ths sqm in 1H 2017, we have a solid base for revenue recognition during the period, which should have a positive effect on our year-on-year financial performance and dividends for the period.

"Average down payment increased to 79% for 2Q 2017, helped by a significant increase in mortgage-financed sales, which reached 33% during the quarter.

"The growing share of mortgages is an early sign of demand from new customers, for whom mortgage lending has become accessible as a result of falling borrowing rates in Russia, which are now at record low levels.

"The launch of new projects in Moscow and St Petersburg supported strong quarter-on-quarter growth for 2Q 2017, and we expect a further acceleration in sales, with the majority of our 2017 launches due to take place in the second half of the year, including Silver Fountain, our first business-class project in Moscow."






Story provided by StockMarketWire.com