Amer Group (Amer) reported its 2015 financial results. Revenue was EGP1,846 million (+4.5% Y-o-Y), gross profit was EGP667 million (+1.9% Y-o-Y), translating into a Gross Profit Margin (GPM) of 36.1% (37.1% in 2014). The real estate sector contributed the highest to revenue, at 66.4%, restaurants at 12.1%, followed by hotels at 8.1%, Porto Vacation Club (PVC) at 4.7%, and malls 3.0%. EBIT dropped 3.5% Y-o-Y to reach EGP295.5 million. EBIT margin averaged 16.0%, down from 17.3% in 2014. Net income fell 16.6% Y-o-Y to reach EGP154.3 million, with the lower effective tax rate (28.5% in 2015 down from 31.8% in 2014) only partially compensating for the hike in finance costs (related to the interest payment of the securitisation transaction). Amer started booking 1% of Porto Group’s total revenue as royalty fee. The company’s balance sheet continues to be low-leveraged, with the debt-to-equity ratio at 0.13x in December 2015 (0.10x in December 2014).   Contracted sales totaled EGP1,764 million in 2015 (+15% Y-o-Y). Revenue from restaurants was roughly unchanged Y-o-Y, at EGP143 million, operating profit quadrupled to EGP18.4 million, indicating early signs of recovery. Revenue from hotels grew by 26% to reach EGP150 million, breaking-even on the EBIT level. Revenue from malls fell by 13% to reach EGP56 million, despite an 8 pps rise in the portfolio’s occupancy rate to 51%. The company aims to grow the number of malls from eight to 18 before the end of 2019. Amer started booking revenue from PVC in 2015, which came in at EGP86.9 million, representing 10% of total PVC sales, in line with the applicable accounting policies. Management plans to launch PVC in Dead Sea, Jordan. Amer has announced it hired two new heads to the malls and hospitality divisions in 4Q2015 to lead the restructuring of the two divisions. Amer has 5.5 million sqm, of which 2 million are undeveloped. (Company disclosure)