PREATONI Group (Euronext Paris - ISIN: FR001400WXE7 - Ticker: MLPRG), an international group specializing in the ownership and operation of hotel assets and in residential and commercial real estate development, announces its 2024 annual results (as of December 31, 2024), approved by the Management Board at its meeting on May 26, 2025. The audit procedures on the consolidated accounts have been completed and the statutory auditors' certification report is ongoing. The annual financial report will be published on Euronext and on the PREATONI Group website no later than June 30, 2025.
PREATONI Group's performance in 2024 declined compared to 2023. This downturn reflects a weak, although being expected, level of activity in the Real Estate Development division and a slightly improved, but below expectations, performance in the Hospitality & Tourism division.
In the Real Estate Development division, 2024 began with low inventory available for sale and was marked by the construction of new buildings scheduled to be sold in 2025 and 2026. Sales pace and pricing levels have remained robust.
In the Hospitality & Tourism division, 2024 saw a solid occupancy rate (86.9% for the year), but this came at the cost of significant pricing efforts necessitated by the geopolitical context. Additionally, the high inflation rate in Egypt (approximately 28% in 2024), combined with the strong devaluation of the Egyptian pound, negatively impacted annual results. In Italy, the Domina Milano Fiera hotel (Milan) continued its upward trend, as did, to a lesser extent, the Domina Zagarella resort (Palermo).
In addition to these operational elements, the Group's results were significantly affected by the application of accounting rules to its timeshare business in Egypt. These impacts, however, had no effect on cash flow. Specifically, the sale of usage rights for an apartment over 5 or 30 years, combined with annual paid hotel services, was treated under IFRS 15 as the provision of hotel services spread over the duration of the contract. As a result, revenue had to be recognized over the 5- and 30-year periods.
Applying this rule reduced consolidated revenue, the EBITDA and net income by approximately €4.6 million, as the associated costs could not be spread over time. However, it has no impact on cash flow.
Furthermore, due to the inability to precisely quantify its value—even though this expertise is currently being applied successfully to the Palazzo Tower project in Dubai—the 2024 accounts include a full impairment of the Group's know-how in reviving distressed real estate projects. This results in a €10 million negative impact on the 2024 income statement and on the balance sheet as of December 31, 2024, with no impact on the Group's cash position.
Overall, net income attributable to the Group stands at –€14.7 million, compared to a restated 2023 result of €1.3 million, which included a non-recurring revenue of €12 million.
On the balance sheet at year-end 2024, gross financial debt remained nearly unchanged at €95.5 million, including €40.9 million in bond debt as of December 31, 2024 (vs. €96.1 million as of December 31, 2023 restated). As of December 31, 2024, available cash amounted to €10.3 million, compared to €22.0 million at year-end 2023 restated.
Income statement
| €k |
2023 restated[1] |
2024 |
| Revenue |
71,316 |
67,085 |
| Gross margin |
19,369 |
17,104 |
| Personal costs and charges |
(13,216) |
(13,984) |
| Other current expenses |
(486) |
(1,490) |
| Amortizations, impairment and provisions |
(9,839) |
(1,339) |
| Current operating income |
(4,171) |
291 |
| Change in value of investment properties |
1,972 |
1,130 |
| Other non-recurring revenues and expenses |
11,944 |
(53) |
| Goodwill impairment |
(510) |
(10,751) |
| Share of net income (loss) of equity-accounted entities |
(400) |
(746) |
| Income from operating activities |
8,760 |
(10,144) |
| Financial income (loss) |
(7,934) |
(4,625) |
| Tax expenses |
(356) |
(2,178) |
| Net income |
470 |
(16,947) |
| Net income attributable to the Group |
1,294 |
(14,665) |
| Alternative Performance Indicator |
2023 restated2 |
2024 |
| EBITDA[2] |
19,109 |
1,946 |
The 2025 fiscal year is expected to show significant progress across both business divisions.
Real estate market trends in the Baltic countries remain favorable, and the Group has entered the start of fiscal 2025 under strong conditions. First-quarter 2025 sales for the Pro Kapital Grupp subsidiary reached €12.5 million, representing a substantial increase in both volume and pricing (+307.7%) compared to Q1 2024[3].
The Group is continuing the construction of its various projects in line with its roadmap:
- In Tallinn, the final phase of the Kalaranna project (146 units) has been completed. As of today, the units are 60% sold and 50% delivered, confirming the trends observed at the end of March.
- The Uus-Kindrali ("White Building") project, consisting of 91 residential units, is progressing according to schedule and has already reached a 57% pre-sale rate.
- Similarly, the Šaltini? Namai Attico project in Vilnius is advancing as planned.
These projects are scheduled for completion by the end of 2025. Deliveries will take place throughout the fiscal year, with sales continuing into 2026. As a result, these developments are expected to make a more substantial contribution to both revenue and EBITDA in 2025.
As for the Hospitality/Tourism division, the first quarter is not very meaningful for the annual results, due to the seasonality of the business.
About PREATONI Group
Founded and developed by Ernesto Preatoni, PREATONI Group is an international group specializing in the ownership and operation of tourist resorts, primarily in Egypt and Italy, as well as in residential and commercial real estate development in the EMEA region (Baltic States, Dubai). Inspired by the pioneering spirit of its founder, Ernesto Preatoni, PREATONI Group is a unique publicly listed real estate company that integrates an original and highly value-creating development model. The Group employs over 1,500 people worldwide. Headquartered in France, PREATONI Group is listed on Euronext Access+ (ISIN code: FR001400WXE7). |
Investor relations
ACTUS finance & communication
Anne-Pauline Petureaux
apetureaux@actus.fr
T: (+33) 1 53 67 36 72 |
|
Media relations
ACTUS finance & communication
Deborah Schwartz
dschwartz@actus.fr
T: (+33) 1 53 67 36 35 |
Appendix
Reconciliation table EBITDA/Income from operating activities
| Alternative Performance Indicator (k€) |
2024 |
| Income from operating activities |
(10,144) |
| Amortizations, impairment and provisions |
1,339 |
| Goodwill impairment |
10,751 |
| EBITDA |
1,946 |
[1] Restated due to application of IFRS8 on Time Share activity
[2] EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) = Income from operating activities – Amortizations, impairment and provisions (see reconciliation table in Appendix)
[3] 49.62%-owned (fully consolidated) and listed on the Nasdaq Baltic Stock Exchange in Tallinn The unaudited Q1 2025 results of AS Pro Kapital Grupp are available on their website: https://www.prokapital.com/en/financials/.
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PREATONI Group (Euronext Paris - ISIN: FR001400WXE7 - Ticker: MLPRG), an international group specializing in the ownership and operation of hotel assets and in residential and commercial real estate development, announces its 2024 annual results (as of December 31, 2024), approved by the Management Board at its meeting on May 26, 2025. The audit procedures on the consolidated accounts have been completed and the statutory auditors' certification report is ongoing. The annual financial report will be published on Euronext and on the PREATONI Group website no later than June 30, 2025.
PREATONI Group's performance in 2024 declined compared to 2023. This downturn reflects a weak, although being expected, level of activity in the Real Estate Development division and a slightly improved, but below expectations, performance in the Hospitality & Tourism division.
In the Real Estate Development division, 2024 began with low inventory available for sale and was marked by the construction of new buildings scheduled to be sold in 2025 and 2026. Sales pace and pricing levels have remained robust.
In the Hospitality & Tourism division, 2024 saw a solid occupancy rate (86.9% for the year), but this came at the cost of significant pricing efforts necessitated by the geopolitical context. Additionally, the high inflation rate in Egypt (approximately 28% in 2024), combined with the strong devaluation of the Egyptian pound, negatively impacted annual results. In Italy, the Domina Milano Fiera hotel (Milan) continued its upward trend, as did, to a lesser extent, the Domina Zagarella resort (Palermo).
In addition to these operational elements, the Group's results were significantly affected by the application of accounting rules to its timeshare business in Egypt. These impacts, however, had no effect on cash flow. Specifically, the sale of usage rights for an apartment over 5 or 30 years, combined with annual paid hotel services, was treated under IFRS 15 as the provision of hotel services spread over the duration of the contract. As a result, revenue had to be recognized over the 5- and 30-year periods.
Applying this rule reduced consolidated revenue, the EBITDA and net income by approximately €4.6 million, as the associated costs could not be spread over time. However, it has no impact on cash flow.
Furthermore, due to the inability to precisely quantify its value—even though this expertise is currently being applied successfully to the Palazzo Tower project in Dubai—the 2024 accounts include a full impairment of the Group's know-how in reviving distressed real estate projects. This results in a €10 million negative impact on the 2024 income statement and on the balance sheet as of December 31, 2024, with no impact on the Group's cash position.
Overall, net income attributable to the Group stands at –€14.7 million, compared to a restated 2023 result of €1.3 million, which included a non-recurring revenue of €12 million.
On the balance sheet at year-end 2024, gross financial debt remained nearly unchanged at €95.5 million, including €40.9 million in bond debt as of December 31, 2024 (vs. €96.1 million as of December 31, 2023 restated). As of December 31, 2024, available cash amounted to €10.3 million, compared to €22.0 million at year-end 2023 restated.
Income statement
€k |
2023 restated[1] |
2024 |
Revenue |
71,316 |
67,085 |
Gross margin |
19,369 |
17,104 |
Personal costs and charges |
(13,216) |
(13,984) |
Other current expenses |
(486) |
(1,490) |
Amortizations, impairment and provisions |
(9,839) |
(1,339) |
Current operating income |
(4,171) |
291 |
Change in value of investment properties |
1,972 |
1,130 |
Other non-recurring revenues and expenses |
11,944 |
(53) |
Goodwill impairment |
(510) |
(10,751) |
Share of net income (loss) of equity-accounted entities |
(400) |
(746) |
Income from operating activities |
8,760 |
(10,144) |
Financial income (loss) |
(7,934) |
(4,625) |
Tax expenses |
(356) |
(2,178) |
Net income |
470 |
(16,947) |
Net income attributable to the Group |
1,294 |
(14,665) |
Alternative Performance Indicator |
2023 restated2 |
2024 |
EBITDA[2] |
19,109 |
1,946 |
The 2025 fiscal year is expected to show significant progress across both business divisions.
Real estate market trends in the Baltic countries remain favorable, and the Group has entered the start of fiscal 2025 under strong conditions. First-quarter 2025 sales for the Pro Kapital Grupp subsidiary reached €12.5 million, representing a substantial increase in both volume and pricing (+307.7%) compared to Q1 2024[3].
The Group is continuing the construction of its various projects in line with its roadmap:
- In Tallinn, the final phase of the Kalaranna project (146 units) has been completed. As of today, the units are 60% sold and 50% delivered, confirming the trends observed at the end of March.
- The Uus-Kindrali ("White Building") project, consisting of 91 residential units, is progressing according to schedule and has already reached a 57% pre-sale rate.
- Similarly, the Šaltini? Namai Attico project in Vilnius is advancing as planned.
These projects are scheduled for completion by the end of 2025. Deliveries will take place throughout the fiscal year, with sales continuing into 2026. As a result, these developments are expected to make a more substantial contribution to both revenue and EBITDA in 2025.
As for the Hospitality/Tourism division, the first quarter is not very meaningful for the annual results, due to the seasonality of the business.
About PREATONI Group
Founded and developed by Ernesto Preatoni, PREATONI Group is an international group specializing in the ownership and operation of tourist resorts, primarily in Egypt and Italy, as well as in residential and commercial real estate development in the EMEA region (Baltic States, Dubai). Inspired by the pioneering spirit of its founder, Ernesto Preatoni, PREATONI Group is a unique publicly listed real estate company that integrates an original and highly value-creating development model. The Group employs over 1,500 people worldwide. Headquartered in France, PREATONI Group is listed on Euronext Access+ (ISIN code: FR001400WXE7). |
Investor relations
ACTUS finance & communication
Anne-Pauline Petureaux
apetureaux@actus.fr
T: (+33) 1 53 67 36 72 |
|
Media relations
ACTUS finance & communication
Deborah Schwartz
dschwartz@actus.fr
T: (+33) 1 53 67 36 35 |
Appendix
Reconciliation table EBITDA/Income from operating activities
Alternative Performance Indicator (k€) |
2024 |
Income from operating activities |
(10,144) |
Amortizations, impairment and provisions |
1,339 |
Goodwill impairment |
10,751 |
EBITDA |
1,946 |
[1] Restated due to application of IFRS8 on Time Share activity
[2] EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) = Income from operating activities – Amortizations, impairment and provisions (see reconciliation table in Appendix)
[3] 49.62%-owned (fully consolidated) and listed on the Nasdaq Baltic Stock Exchange in Tallinn The unaudited Q1 2025 results of AS Pro Kapital Grupp are available on their website: https://www.prokapital.com/en/financials/.
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Regulated information:
Inside Information:
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Full and original press release in PDF: https://www.actusnews.com/news/91937-pr_preatoni_2024annual_results_final.pdf
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