Amer Group (Amer) reported its 2Q16 results. New sales were EGP275mn in 2Q16 (-11% Y-o-Y, +60% Q-o-Q), bringing the total figure in 1H16 to EGP447mn (-26% Y-o-Y). Revenue came in at EGP414mn in 2Q16 (+10% Y-o-Y, -24% Q-o-Q), with revenue from real estate contributing 70% to revenue (63% in 2Q15, 81% in 1Q16), totaling EGP288mn (+21% Y-o-Y, -35% Q-o-Q). The restaurant business was the second largest contributor to revenue, with 13% in 2Q16 (2Q15: 14%, 1Q16: 10%), coming in at EGP54.8mn (+5% Y-o-Y, +4% Q-o-Q). Hotels came next, with EGP35.1mn (+6% Y-o-Y, +101% Q-o-Q). Gross profit margin was 30% in 2Q16 (2Q15: 32%, 1Q16: 26%), while EBIT margin fell to 8.3% in 2Q16 (2Q15 and 1Q16: 10.2%), pressured by a hike in operating expenses. Net income was EGP6.1mn (2Q15: EGP13.6mn, 1Q16: EGP68.3mn, which was boosted by FX revaluation gains worth EGP38mn). 1H16 revenue came in at EGP958mn (+14% Y-o-Y), gross profit margin 28% (1H15: 35%) on lower gross profit margins in the property sales segment, EBIT margin was 9.4% (1H15: 14.8%) on higher operating costs, while net income grew 25% Y-o-Y to EGP74mn, but fell 41% to EGP35mn, excluding EGP38mn worth of FX revaluation gains). We note that the restaurants, hotels and malls were loss-making on the operational level in 2Q16 and 1H16. (Company disclosure, Mai Attia, Sara Boutros)