Etalon Group sells more in Q3, earns less in H1

This translates into a 16 pct increase in from RUB 8.15 bln to RUB 9.48 bln and a 14 pct increase in sold space from 92,755 sqm to 106,039 sqm. For the first half of 2014, consolidated revenue dropped to RUB 14.54 bln, compared to RUB 16.63 bln last year, while EBITDA decreased to RUB 1.68 bln, compared to RUB 4.12 bln. “It is important to note that the year-on-year decrease in our six-month financial results is not a reflection of the market environment, or of a structural shift in demand. On the contrary, demand for our product remains robust. The year-on-year decrease is related to our accounting policy and the timing of revenue recognition, and specifically to the fact that the high volume of 2012 deliveries was formally recorded as revenue in early 2013, while the majority of our 2014 delivery volumes are due in Q4 2014, at which point the presold portion will be recorded as revenue. As such, a year-on-year comparison of our H1 results is not representative of the actual performance,” explained the president Viacheslav Zarenkov Etalon Group.