OREANDA-NEWS. June 25, 2007. Sistema-Hals (LSE: HALS), leading Moscow-based real estate development, management and investment company, has announced its US GAAP unaudited consolidated financial results for the first quarter of 2007.

KEY INDICATORS FOR 1Q 2007:
Consolidated revenue up 119% from 1Q2006 to $34.5m.
Operating profit up 96% from 1Q2006 to $4.5m
EBITDA increased to $18.4m, compared to negative EBITDA of $2.5m in 1Q2006; EBITDA margin of 53.3%.
Net profit of $5.9m, compared to 1Q2006 losses of $6.8m.

The company has also acquired a 67.58% stake in the KAMELIYA Health Resort in the city of Sochi, which is currently being renovated as a multifunctional complex that will include a 5-star hotel, luxury apartments and a full internal infrastructure.

Michael Golomb, Sistema-Hals' Chief Financial Officer, said:

"Overall, we are positive about the first quarter results. The strong increase in our operating profit provides an early indication of our anticipated growth for the rest of the year and we are confident that the next three quarters will be equally positive.  We expect further growth of revenue in the following quarters of 2007 due to the seasonality of our business and our forecast the financial result for the whole year is optimistic".