Egypt's Orascom Development posted a 9 percent decline in first-half net profit on Tuesday, as the value of its real estate assets dropped. The Swiss-listed company, mostly known for building luxury resort towns, reported net income of 41.1 million Swiss francs ($39.52 million), down from 45 million francs in the first six months of 2009. Revenue climbed 2 percent to 283 million francs, with hotel revenue up 17 percent, and deferred income jumped 75 percent to 242 million francs. Orascom Development, which has projects in the Middle East and Europe in addition to its main base in Egypt, uses the pre-sale of homes as a main source of finance. "Total value of contracted real estate units amounted to 70 million Swiss francs in comparison to 76 million in H1 2009," Orascom Development said in a statement, without giving a reason for the decline. The company was not immediately available for further comment. It said it had sold its subsidiary El Aqaba Oasis and its stake in a fund for a total of $35.5 million on June 30.
