ETALON GROUP PLC (“Etalon Group” or the “Company”), one of Russia’s largest and longest-established development and construction companies, announces its unaudited operating results for the six months and three months ended 30 June 2020, based on management accounts.
1H 2020 operating highlights
- New contract sales amounted to 220,955 sqm and RUB 29,522 million
- Cash collections reached RUB 31,547 million
- Average price per sqm grew by 11% year-on-year to RUB 133,609
- Average price per sqm of apartments was RUB 162,982, up by 14% year-on-year
- Net corporate debt (1) stood at RUB 23,006 million as of 30 June 2020
1H 2020 operating results
| 1H 2020 | 1H 2019 | Change, % | |
|---|---|---|---|
| New sales, sqm | 220,955 | 322,212 | (31%) |
| New sales, mln RUB | 29,522 | 38,734 | (24%) |
| Number of contracts | 3,882 | 6,530 | (41%) |
| Cash collections, mln RUB | 31,547 | 42,809 | (26%) |
| Deliveries, sqm | 177,359 | 246,343 | (28%) |
Regional breakdown
| 1H 2020 | 1H 2019 | Change, % | ||
|---|---|---|---|---|
| Moscow metropolitan area | ||||
| New sales, sqm | 105,938 | 161,400 | (34%) | |
| New sales, mln RUB | 15,887 | 22,479 | (29%) | |
| Number of contracts | 1,762 | 3,217 | (45%) | |
| Cash collections, mln RUB | 16,500 | 26,030 | (37%) | |
| Deliveries, sqm | 103,888 | 246,343 | (58%) | |
| St Petersburg | ||||
| New sales, sqm | 115,017 | 160,811 | (28%) | |
| New sales, mln RUB | 13,635 | 16,256 | (16%) | |
| Number of contracts | 2,120 | 3,313 | (36%) | |
| Cash collections, mln RUB | 15,047 | 16,778 | (10%) | |
| Deliveries, sqm | 73,472 | - | - | |
2Q 2020 operating highlights
- The number of new contracts was 1,559
- New contract sales amounted to 94,984 sqm and RUB 11,585 million
- Cash collections reached RUB 13,942 million
- Average price per sqm was RUB 121,971
- Average price per sqm of apartments grew by 9% year-on-year to RUB 159,063
2Q 2020 operating results
| 2Q 2020 | 2Q 2019 | Change, % | |
|---|---|---|---|
| New sales, sqm | 94,984 | 154,257 | (38%) |
| New sales, mln RUB | 11,585 | 18,782 | (38%) |
| Number of contracts | 1,559 | 3,060 | (49%) |
| Cash collections, mln RUB | 13,942 | 19,177 | (27%) |
| Average price, RUB/sqm | 121,971 | 121,759 | 0% |
| Average price (apartments), RUB/sqm | 159,063 | 146,524 | 9% |
| Deliveries, sqm | 88,847 | 211,805 | (58%) |
Regional breakdown
| 2Q 2020 | 2Q 2019 | Change, % | ||
|---|---|---|---|---|
| Moscow metropolitan area | ||||
| New sales, sqm | 46,767 | 75,252 | (38%) | |
| New sales, mln RUB | 5,746 | 10,877 | (47%) | |
| Number of contracts | 640 | 1,454 | (56%) | |
| Cash collections, mln RUB | 7,176 | 11,768 | (39%) | |
| Average price, RUB/sqm | 122,861 | 144,541 | (15%) | |
| Average price (apartments), RUB/sqm | 199,060 | 161,939 | 23% | |
| Deliveries, sqm | 15,375 | 211,805 | (93%) | |
| St Petersburg | ||||
| New sales, sqm | 48,218 | 79,005 | (39%) | |
| New sales, mln RUB | 5,840 | 7,905 | (26%) | |
| Number of contracts | 919 | 1,606 | (43%) | |
| Cash collections, mln RUB | 6,766 | 7,409 | (9%) | |
| Average price, RUB/sqm | 121,108 | 100,058 | 21% | |
| Average price (apartments), RUB/sqm | 135,539 | 129,606 | 5% | |
| Deliveries, sqm | 73,472 | - | - | |
Quarterly operating performance
| 2Q 2020 | 1Q 2020 | 4Q 2019 | 3Q 2019 | 2Q 2019 | |
|---|---|---|---|---|---|
| New sales, sqm | 94,984 | 125,971 | 171,530 | 136,658 | 154,257 |
| New sales, mln RUB | 11,585 | 17,936 | 21,795 | 17,098 | 18,782 |
| Number of contracts | 1,559 | 2,323 | 2,931 | 2,579 | 3,060 |
| Cash collections, mln RUB | 13,942 | 17,604 | 18,791 | 16,114 | 19,177 |
| Average price, RUB/sqm | 121,971 | 142,384 | 127,060 | 125,118 | 121,759 |
| Average price (apartments), RUB/sqm | 159,063 | 165,481 | 156,271 | 153,394 | 146,524 |
| Deliveries, sqm | 88,847 | 88,513 | 308,294 | 67,230 | 211,805 |
Mortgage contract developments
| 2Q 2020 | 1Q 2020 | 4Q 2019 | 3Q 2019 | 2Q 2019 | |
|---|---|---|---|---|---|
| Share of mortgages | 44% | 36% | 35% | 36% | 36% |
Commenting on the 1H and 2Q 2020 operating results, Etalon Group CEO Gennadiy Shcherbina said:
“Despite the anticipated decline in consumer activity amid restrictions related to the COVID-19 pandemic, we have seen a gradual recovery in demand over the course of the last quarter. The value of new contract sales in June 2020 was 78% higher than in May 2020. The share of mortgage sales also increased from 36% in 1Q 2020 to a record high 44% in 2Q 2020. Updates to the subsidised mortgage programme announced in April of this year also played an important role in the growth of sales financed by mortgages. Following an announcement in June that the maximum price for apartments in Moscow and St Petersburg eligible for the programme would be increased to RUB 12 million, more than 85% of our offering can now be purchased with subsidised mortgages.
“Another significant supporting factor for sales in 1H and 2Q 2020 was our ability to rapidly adapt to the new market conditions. During the very first weeks of the lockdown period we quickly launched online real estate sales, assembled teams to support this new service and expanded the capacity of our call centre. Operations at our construction sites in St Petersburg continued uninterrupted. In the Moscow metropolitan area, we were able to return to work on our projects as soon as possible after the temporary ban on construction was lifted, thanks to the flexibility of the monolithic construction technology and the fact that we use our own general contracting and sub-contracting organisations. As a result, all projects planned for delivery in 1H 2020 were completed on time.
“Currently, all restrictions on construction activities have been lifted, all our sales offices are operating, and we see growing interest in Etalon Group’s real estate portfolio. We expect that performance in the second half of the year will largely compensate for the decline in Q2 that was due to the COVID-19 pandemic. Key factors supporting this recovery include a decrease in the Central Bank of Russia’s key rate to a record low 4.5%, growth in investment demand for real estate following the introduction of taxes on interest-earning bank deposits, as well as the launch of sales for new projects and for new buildings at Etalon Group residential complexes already under construction, which enjoy stable demand. The current environment, in which consumers are risk-averse, is advantageous for large players such as Etalon Group due to our reputation for reliability, brand recognition, stable financial position and a wide range of available projects.”
Etalon Group Chief Financial Officer Ilya Kosolapov added:
“Effective debt portfolio management, combined with the temporary ban on construction in Moscow, enabled us to bring gross debt down by RUB 4 billion during 1H 2020, despite changes to payment terms with our customers and lower consumer demand in the second quarter. Cash balances in escrow accounts, which are not reflected in our reporting, exceeded RUB 8 billion during the first six months of 2020. This made it possible to bring interest rates for project financing down to preferential levels of 3%-4%. Furthermore, the lowering of the key rate by the Central Bank of Russia will facilitate further reductions in financing costs on borrowings with floating interest rates, such as the loan for the purchase of Leader-Invest. As of 30 June 2020, the average interest rate on our loan portfolio had fallen to 9.05%, compared to 9.4% on 31 December 2019. We expect the cost of capital to decrease further in the second half of 2020 as a result of the Central Bank of Russia’s dovish monetary policy.”
Conference call and webcast
The Company will host a conference call for investors and analysts today at 15:00 London time (17:00 Moscow; 10:00 New York).
On the call, the Etalon Group management team will present the Company’s 1H and 2Q 2020 operating results and provide an update on the impact of the COVID-19 situation in Russia. Following the presentation there will be a question and answer session for participants.
Webcast
https://edge.media-server.com/mmc/p/jqjp9wcm
Dial-in numbers:
+44 2071 928338 – Standard International
+44 844 4819 752 – London
+7 495 249 9851 – Moscow
+1 646 741 3167 – New York
Conference ID Code: 3298634
This and other recent announcements are available on the Etalon Group website:
https://www.etalongroup.com/en/news/.
IR Team
About Etalon Group
Founded in 1987, today Etalon Group is one of the leading nationwide players in Russia’s development and housing construction sector. The Company develops real estate projects for the middle class in Moscow, the Moscow region and St Petersburg. The Company has been actively developing in eight regions across Russia since 2021, with large-scale projects under way in Omsk, the Novosibirsk region, Ekaterinburg, Tyumen and Kazan. With 38 years of successful operations and ongoing regional expansion, the Company remains one of the largest players in the Russian real estate market. Since its foundation, Etalon Group has delivered 9.2 mln sqm of real estate.
Thanks to its integrated business model, Etalon Group creates added value for customers and shareholders at every stage of development, from land plot analysis and acquisition to the operation and maintenance of existing properties. Etalon Group employs more than 6,000 people.
Etalon Group’s total assets comprise 27 projects under development, unsold inventory at completed residential complexes and commercial properties, with total unsold NSA of 5.5 million sqm, as well as a construction and maintenance division. According to Nikoliers, the value of Etalon Group assets as of 31 December 2024 was RUB 305 billion.
In 2025, Etalon Group’s new contract sales totalled 671 ths sqm, or RUB 153.5 billion.
The Company’s revenue in 2024 amounted to RUB 131 billion, with EBITDA of RUB 27.6 billion.
Etalon Group shares are traded on the Moscow Exchange (ticker ETLN) and have been included in the Level 2 quotation list since September 2025.