Other business: residential tourism development

Las Colinas Golf & Country Club has shown a negative evolution over the year. Although, for the fifth year running, this business line generated positive EBITDA. After recording an EBITDA of €13.1m in 2018, it has decreased to €3.9m in 2019 (accounting principles).

Residential property development is the main business, which includes the sale of land and homes under development. It is worth noting that the evolution outlined below is presented from the point of view of sales and commercial margins, while the income statement shown at the beginning of this section follows accounting principles. The drop was 16.8% in sales revenues amounting to €28.0m, and 30.8% in terms of sales margins, down to €12.1m. The reasons behind this are the marked slowdown in sales of key-in-hand villa projects whereas the evolution of sales of plots of land to developers and of apartments from the joint venture with Somium Premium Properties has been positive.

As regards operations, this includes golf, restaurants and accommodation, turnover has fallen by 2.2%, down to €4.9m. As far as EBITDA is concerned, it dropped significantly to €44k. The sharp decrease was principally due to adverse meteorological conditions in the months of April and September. Specifically, the cold drop that hit the Levante coast in September, which had a major impact on Las Colinas Golf & Country Club. It caused serious damage to the golf course which had to stop play for a number of days in the middle of high season and many bookings were cancelled, affecting business significantly. The EDITDA excludes the costs incurred by extraordinary repairs.

Key financial data on Las Colinas Golf & Country Club

Las Colinas Golf & Country Club has shown a negative evolution over the year. Although, for the fifth year running, this business line generated positive EBITDA. After recording an EBITDA of €13.1m in 2018, it has decreased to €3.9m in 2019 (accounting principles).

Residential property development is the main business, which includes the sale of land and homes under development. It is worth noting that the evolution outlined below is presented from the point of view of sales and commercial margins, while the income statement shown at the beginning of this section follows accounting principles. The drop was 16.8% in sales revenues amounting to €28.0m, and 30.8% in terms of sales margins, down to €12.1m. The reasons behind this are the marked slowdown in sales of key-in-hand villa projects whereas the evolution of sales of plots of land to developers and of apartments from the joint venture with Somium Premium Properties has been positive.

As regards operations, this includes golf, restaurants and accommodation, turnover has fallen by 2.2%, down to €4.9m. As far as EBITDA is concerned, it dropped significantly to €44k. The sharp decrease was principally due to adverse meteorological conditions in the months of April and September. Specifically, the cold drop that hit the Levante coast in September, which had a major impact on Las Colinas Golf & Country Club. It caused serious damage to the golf course which had to stop play for a number of days in the middle of high season and many bookings were cancelled, affecting business significantly. The EDITDA excludes the costs incurred by extraordinary repairs.

Key financial data on Las Colinas Golf & Country Club