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BURSA DE VALORI BUCURESTI SA - BVB

2019 Q3 financial results

Release Date: 11/11/2019 8:30:10 AM

IRIS Code: 7A2B4

 

FINANCIAL RESULTS AS OF SEPTEMBER 30, 2019

 

Key events, 9 months 2019

Ø Romania closed the 3rd quarter with the promotion to Emerging Market from Frontier Market status, as the global index provider FTSE Russell announced on September 26 this year

Ø The BET index, which mirrors the evolution of the most-traded 16 companies except for the Financial Investment Companies, went up by 30% in the first 9 months

Ø The BET-Total Return (BET-TR) index, which also includes the dividend paid by the companies included in the BET index, has spiked up 41% since the beginning of the year

Ø At the end of the first 9 months, the market value of the Romanian companies listed on BVB amounted to EUR 22.7 bn, while the capitalization of all the companies listed on the Main Market of BVB accounted for EUR 35.9 bn at the end of the last trading session from September

Ø The total trading value on the regulated shares market, excluding offers, + 13% from RON 6.63 bn to RON 7.46 bn

Ø Transactions with shares, excluding offers, accounts for 92% of the total traded value - 9 months 2019, respectively 69% for the similar period of year 2018

Ø The total traded value for all markets, including offers, -15%, from RON 9.545 bn to RON 8.120 bn, due to the decrease of offers on the main market (shares and bonds) with RON 2.164 bn lei

 

Evolution of financial performance, 9 months 2019 - consolidated results BVB Group

Ø The operating revenues of the Bucharest Stock Exchange (BVB) Group in the first 9 months of the year was RON 26.45 mn, -9% compared to the similar period of 2018 (9 months 2018: RON 28.98 mn), a decrease determined by the trading segment (BVB individual) as well as the registry segment - Central Depository (DC)

Ø Revenue from trading - BVB individual*, RON -2.17 mn (from RON 17.41 mn to RON 15.24 mn) as a result of the decrease of the total value of the “offers” transactions carried out on the BVB markets with impact of RON -3.15 mn in revenues, decrease partially offset by the advance of value of "regular" transactions

Ø DC Individual* revenues, -5% in the first 9 months of 2019 compared to 9 months 2018, from RON 11.52 mn to RON 11.00 mn

Ø The revenues related to the post-trading segment (DC) increased by 2% (from RON 7.28 mn to RON 7.42 mn) as a result of the advance of the revenues from the cross-border settlement services while the revenues related to the registry segment (DC) decreased by 16% (from RON 4.16 mn to RON 3.50 mn) as a base effect, considering the "one-off" revenues registered in the first half of 2018

Ø The consolidated operating expenses - 9 months 2019, + 4%, respectively RON 0.95 mn, from RON 21.48 mn to RON 22.43 mn mainly as a result of the advance of other operating expenses (mainly amortization and depreciation of fixed assets expenses), by 12% or RON 0.85 mn

Ø Operating expenses, BVB individual*, 9 months 2019, + 7%, from RON 11.20 mn to RON 11.97 mn mainly due to the advance of other operating expenses (mainly amortization and depreciation of fixed assets expenses)

Ø Operating expenses, DC individual*, 9 months 2019, + 1%, from RON 9.94 mn to RON 10.04 mn mainly due to the advance of the other operating expenses with RON 0.13 mn

* including intra-group transactions

Ø The consolidated operating profit of the BVB Group - 9 months 2019, -46%, from RON 7.50 mn to RON 4.02 mn result of the combined effect of the decrease of the operating revenues by 9% and the increase of the operating expenses by 4 %

Ø Operating profit, BVB individual* - 9 months 2019, -48%, from RON 6.21 mn to RON 3.24 mn, with 21% operating margin. This includes intra-group transactions (for trading segment values, excluding intra-group transactions - see Note 6 Segment reporting)

Ø Operating profit, DC individual* - 9 months 2019, -40%, from RON 1.58 mn to RON 0.95 mn, with 9% operating margin. This includes intra-group transactions (for post-trade and registry segments values, excluding intra-group transactions - see Note 6 Segment reporting)

 

Ø Net financial income - 9 months 2019, + 42%, from RON 2.76 mn to RON 3.93 mn, mainly determined by the advance of the unrealized exchange rate differences from the revaluation of the financial instruments in foreign currency that generated a gain of RON 1.28 mn vs. RON 0.48 mn in the similar period of 2018, but also as a result of the sale of financial assets (government securities) that generated a gain of RON 0.39 mn

Ø Net financial income, BVB individual* - 9 months 2019, + 41% or RON 1.35 mn, from RON 3.28 mn to RON 4.63 mn, and includes the dividend income from the Central Depository of RON 1.38 mn. For the trading segment values, excluding dividend income from the Central Depository - see Note 6 Segment reporting

Ø Net financial income, DC individual* - 9 months 2019, + 66% or RON 0.27 mn, from RON 0.40 mn to RON 0.67 mn. For the post-trade and registry segment values ​​- see Note 6 Segment reporting

 

Ø The consolidated net profit of the BVB Group - 9 months 2019, -18%, from RON 8.15 mn to RON 6.69 mn, 78% being generated by the Group's trading segment

Ø Net profit, BVB individual* - 9 months 2019, -14%, from RON 7.89 mn to RON 6.82 mn, with 45% net margin. This includes intra-group transactions (for trading segment values, excluding intra-group transactions - see Note 6 Segment reporting)

Ø Net profit, DC individual* - 9 months 2019, -17%, from RON 1.71 mn to RON 1.41 mn, with 13% net margin. This includes intra-group transactions (for post-trade and registry segments values, excluding intra-group transactions - see Note 6 Segment reporting)

* including intra-group transactions

The Financial Report as of September 30, 2019 is available for shareholders, investors and general public as of November 11, 2019, 8:30AM local time. 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 is available on our website www.bvb.ro, in the “Investor relations/Financial figures/Financial statements” section, at http://www.bvb.ro/InvestorRelations/FinancialFigures/FinancialReports. The Financial Report is also attached to current announcement.

The conference call for presenting the financial results as of September 30, 2019 takes place on November 11, 2019, 16:00 local time. For joining the conference call, please contact us at ir@bvb.ro.

 



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