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Merko’s Q3 revenue stays at last year’s level

Merko Ehitus posted revenue of EUR 67.8 million in Q3 2016, remaining on par with the same quarter in 2015. As of the nine-month mark, revenue has been held back by the slower than planned launch of large-scale projects. In the first 9 months of 2016, the company sold close to 270 apartments and launched the construction of 280 new apartments. Real estate development continues to make up a quarter of the group’s revenue.

“On one hand, it’s positive that in spite of the slump on the Baltic states’ construction market, we were able to keep Q3 revenue at last year’s levels. Yet the results for the nine months are clearly below expectations, above all because of the fact that the potential of our fairly strong secured order book has not been fully realised. The delays in the preparation for construction of a number of large sites and obtaining permits has kept us from starting construction work at the desired pace and the work will be postponed to next year. Sales revenue for apartment development in 2016 is also underperforming as the formalities for sales in two completed apartment buildings are mired in delays in local government department. For that reason, the delivery of the apartments already covered with preliminary sales contracts and planned for Q4 will be delayed and the corresponding part of the revenue will likely shift to next year and influence the results for this year,” said Andres Trink, chairman of the management board of AS Merko Ehitus. For more information please look here.