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BURSA DE VALORI BUCURESTI SA - BVB

2017 Q1 financial results

Release Date: 5/11/2017 8:30:04 AM

IRIS Code: AFDE9

QUARTERLY REPORT AS OF 31 MARCH 2017

The trading activity registered a sharp recovery in the first quarter of 2017. The total value of transactions on all markets was close to RON 3 bn, more than 42% increase compared with the same quarter of the previous year. On the regulated market shares were traded in amount of RON 2.4 bn, the best first quarter of the last 6 years. The average daily value amounted to RON 43.41 mn, the equivalent of EUR 9.59 mn, 61% increase compared to the first quarter of the previous year. In the same period, this quarter was the best first quarter of the last 7 years in terms of number of transactions (212 thousand).

The Bucharest Stock Exchange (BVB) indices tested new peaks, for the BET index, as well as historical maximums for the rest of the indices. The main local stock index - BET, expanded from March to 12 companies, had one of the world's largest increases in the first quarter of 2017, Ranking in the Top 10 World, in USD, with an 15% advance. Moreover, the analysts estimate that Romania will be ranked again this year, on the first place in the top of BET’s  dividends yield, with 7%.

Regarding Romania's progress towards emerging market status, the analysts from Berenberg, Concorde Securities and Wood & Co claim that Romania already meets the minimum criteria imposed by MSCI, one of the international institutions evaluating the markets, namely the existence of 3 companies meeting certain size and liquidity criteria. The BVB continued its dialogue with other institutions, such as Russell FTSE, S&P Dow Jones or STOXX.

The BVB has stepped up its actions and projects to popularize the capital market through initiatives for both investors and entrepreneurs. The Individual Investors Forum reached its sixth edition with more than 800 registered people and over 15,000 views on social networks, enjoying ample coverage in the press. The BVB also launched the "Leii BVB ", a project aimed at rewarding individuals who have an active presence in the local capital market. In the first quarter, the BVB launched the "Made in Romania" project to identify and support the future engines of the local economy or the region. Over 160 nominations have been received.

Financial and operating highlights

·         The Bucharest Stock Exchange Group (BVB Group) ended the first quarter of 2017 with a growth of more than 7 times of the consolidated operating profit of RON 2.96 mn (1Q 2016: RON 0.36 mn), based on the significant increase of the trading activity amid a very good start of the year.

·         The BVB Group's operating income grew by 42% in the first three months of the year compared to the similar period of 2016, up to RON 9.19 mn, mainly driven by the increase in the total value of transactions traded on the BVB markets.

·         Operating expenses amounted to RON 6.23 mn, where up only 1.6% compared to the first three months of last year, as a result of the decrease of personnel expenses by 4%, the increase of the expenditures on services rendered by third parties, generated by the preparation of the BVB-SIBEX merger and the increase in promotion and marketing expenses, amid the intensification of the capital market promotion activities included, in other operating expenditures.

·         The net financial revenues in the first quarter of 2017, of RON 0.45 mn, mainly derived from interest on financial assets placed in government securities and bank deposits, showed a positive evolution over the same period last year (1Q 2016: RON 0.25 mn – net expense), being less affected by adverse unrealized exchange rate fluctuations in the revaluation of foreign currency financial instruments registered in the first quarter of 2017, of RON 0.15 mn, compared to the same period of the year 2016 when they were of RON 0.88 mn.

·         The operating profit of the BVB Group amounted to RON 2.96 mn, 7 times higher compared to the same quarter of 2016, as a result of the 42% increase in operating revenues, while operational expenditures advanced by only 1.6%.

·         Consolidated net profit in 1Q 2017 amounted to RON 2.83 mn, significantly increasing compared to the net result obtained in the same period of the previous year (1Q 2016: RON 0.04 mn) with a net margin of 31%, while 89% of the net profit being obtained from the Group's trading segment.

·         The revenues from the registry activity carried out by the Central Depository are heterogeneous and variations are not generally significant to indicate the trend of these revenues. In the first quarter of 2017, there was a similar evolution of the revenue over the same period of the previous year. As regards to the post-trading activity carried out by the Central Depository, the related revenues increased by more than 15% on the basis of the additional revenues from the admission and maintenance of the participants in the clearing-settlement and custodian system and the increase of the revenues directly proportional to the activity of trading, ie the revenues from local settlement.

 

Consolidated financial performance – BVB Group (RON mn, unless otherwise stated)

 

 

 

 

 

 

1Q 2017

1Q 2016

Change (%)

 

 

 

 

 

 

 

 

 

Operating revenue

 

 

 

 

 

9.19

6.49

42%

Operating expenses

 

 

 

 

 

6.23

6.13

2%

Operating profit

 

 

 

 

 

2.96

0.36

722%

Net financial revenue/(expenses)

 

 

 

 

 

0.45

(0.25)

280%

Profit before tax

 

 

 

 

 

3.41

0.10

3,310%

Profit for the period

 

 

 

 

 

2.83

0.04

6,975%

Total comprehensive income

 

 

 

 

 

2.95

(0.16)

1,944%

EPS attributable to owners (RON/share)

0,3623

0,0115

3,050%

*Indicators based on consolidated financial results. The ratios for first quarter of 2017 are based on restated figures in accordance with IFRS

 

The complete version of the Financial Report as of March 31, 2017 is available for shareholders, investors and general public starting with May 11, 2017. The printed version is available at BVB’s headquarters, located in Bucharest, 34-36 Carol I Blvd, 14th floor, district 2, and the online version shall be available on our website www.bvb.ro, in the “Investor relations/Financial figures/Financial statements” section, at http://www.bvb.ro/InvestorRelations/FinancialFigures/FinancialReports.

 

 

 

 

 

 

 



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