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BURSA DE VALORI BUCURESTI SA - BVB

2020 Q1 report

Release Date: 5/14/2020 8:30:05 AM

IRIS Code: 2CE1D

FINANCIAL RESULTS AS OF MARCH 31, 2020

 

Key events, 1Q 2020

 

Ø  The total value of transactions on the regulated stock market, excluding offers, + 17% from RON 2.64 bn to RON 3.09 bn. Transactions with shares, excluding offers, represent 84% of the total traded values in Q1 2020, respectively 92% in Q1 2019

 

Ø  The total value of transactions on all markets, including offers, + 29%, from RON 2.87 bn to RON 3.69 bn, due to the increase of “regular” transactions but also of due to the secondary public offers on the main stock market by RON 0.73 bn in total

 

Ø  The interest of the private companies in our alternative market - SMT kept the momentum started in Q1 2020. The Norofert shares listed on this segment on Feb 27th, followed by the bonds issued by Qualitance on March 30th.

 

Ø  The annual conference Romania Investor Day in London took place on Feb 25-26. The majority of the Romanian blue-chip attended the event as well as representatives of the Romanian Government and the Romanian Central Bank.

 

Ø  The first fully digital investor event took place on March 25-26, replacing the CEE Investor Day conference in New York. The participation rate was high, with more than 50 regional companies, including the largest Romanian companies, and roughly 100 institutional investors. This event proved that the investor relations activity can continue successfully in a 100% online environment.

 

Ø  Q1 2020 marked the significant progress of the issuer market making scheme developed by BVB in 2019. 3 issuers, part of the BET index, opted to use this product with positive evolution in their trading volumes after implementing the new market-making arrangements.

 

Ø  Regarding the COVID-19 crisis, BVB took early measures during Q1, including the cancellation of all events with physical participation, the implementation of an extensive work from home program and additional investments in the IT capacity. This ensured the protection of the employees as well as the smooth continuation of our activities. BVB functioned at optimal parameters throughout Q1 2020.

 

Evolution of financial performance, 1Q 2020 - consolidated results BVB Group

 

Ø  The consolidated operating revenues of the BVB Group in 1Q 2020 were of RON 12.11 mn (1Q 2019: RON 8.86 mn), + 37%, + RON 3.26 mn, growth influenced by all business segments of the Group

 

Ø  Revenues from the trading segment (BVB) increased by 49%, + RON 2.57 mn (from RON 5.30 mn to RON 7.87 mn) as a result of the increase in traded values, both "regular” transactions as well as secondary public offers, but also due to the increase of the category of other revenues of this operating segment

 

Ø  Revenues related to the post-trading segment (DC) increased by 15% (from RON 2.38 mn to RON 2.73 mn) due to the increase of revenues from maintaining the quality of custodian in the DC system but also due to the increase of revenues from settlement, influenced by the increase of the values traded at BVB, the revenues related to the register segment (DC) also increased, by 30%, from RON 1.05 mn to RON 1.37 mn, mainly due to the registration of “one-off” revenues

 

Quarterly individual results*:

Ø  Trading revenues – BVB individual*, increased by 48%, + RON 2.57 mn (from RON 5.38 mn to RON 7.95 mn) mainly as a result of the advance of revenues from shares trading on the main market, both “regular” transactions and secondary public offers by RON 1.80 mn

Ø  DC individual* revenues increased by 19%, + RON 0.66 mn in 1Q 2020 compared to 1Q 2019, from RON 3.46 mn to RON 4.12 mn

 

Ø  Consolidated operating expenses - 1Q 2020, + 11%, respectively RON 0.78 mn, from RON 7.24 mn to RON 8.02 mn, mainly due to the advance of personnel expenses by RON 0.46 mn and the expenses with services provided by third parties by RON 0.36 mn.

 

Quarterly individual results*:

Ø  Operating expenses, BVB individual*, 1Q 2020, + 5%, + RON 0.19 mn, from RON 4.01 mn to RON 4.20 mn mainly due to the increase of expenses with services provided by third parties

 

Ø  Operating expenses, DC individual *, 1Q 2020, + 13%, + RON 0.40 mn, from RON 3.11 mn to RON 3.51 mn mainly due to the advance of personnel expenses by RON 0.28 mn, as a base effect, considering that in 1Q 2019 no expenses with Board allowances were registered, the authorization of the Board by FSA took place in April 2019

 

Ø  Consolidated operating profit of the BVB Group - 1Q 2020, + 153%, from RON 1.62 mn to RON 4.09 mn as a result of the advance of operating revenues by 37% while the advance of operating expenses is 11%

 

Ø  Operational profit, BVB individual* - 1Q 2020, + 174%, from RON 1.37 mn to RON 3.76 mn, with an operating margin of 47%. This includes intra-group transactions (for trading segment values, excluding intra-group transactions - see Note 6 Segment reporting)

 

Ø  Operational profit, DC individual* - 1Q 2020, + 76%, from RON 0.35 mn to RON 0.61 mn, with an operating margin of 15%. This includes intra-group transactions (for post-trading and registry segments values, excluding intra-group transactions - see Note 6 Segment reporting)

 

Ø  Consolidated net financial income - 1Q 2020, -54%, from RON 1.69 mn to RON 0.78 mn, mainly determined by the reduction of unrealized exchange rate differences from the revaluation of financial instruments in foreign currency that generated a gain of RON 0.01 mn vs. RON 0.96 mn in 1Q 2019, decrease partially covered by the increase of interest income by RON 0.12 mn, up to the value of RON 0.86 mn

 

Ø  Net financial income, BVB individual* - 1Q 2020, -61% or RON 0.87 mn, from RON RON 1.43 mn to RON 0.55 mn influenced by both the reduction of interest income and unrealized differences of exchange. For the trading segment values, excluding dividend income from the Central Depository - see Note 6 Segment reporting

 

Ø  Net financial income, DC individual* - 1Q 2020, -44% or RON 0.11 mn, from RON 0.26 mn to RON 0.15 mn. For the post-trading and registry segment values - see Note 6 Segment reporting

 

Ø  Consolidated net profit of the BVB Group - 1Q 2020, + 54%, from RON 2.72 mn to RON 4.21 mn, 87% being generated by the trading segment of the Group

 

Ø  Net profit, BVB individual * - 1Q 2020, + 59%, from RON 2.34 mn to RON 3.73 mn, with a net margin of 47%. This includes intra-group transactions (for trading segment values, excluding intra-group transactions - see Note 6 Segment reporting)

 

Ø  Net profit, DC individual* - 1Q 2020, + 29%, from RON 0.52 mn to RON 0.66 mn, with a net margin of 16%. This includes intra-group transactions (for post-trading and registry segments values, excluding intra-group transactions - see Note 6 Segment reporting)

 

* including intra-group transactions

 

The Financial Report as of March 31, 2020 is available for shareholders, investors and general public as of May 14, 2020, 8:30AM local time. The printed version shall be 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. The Financial Report is also attached to the current announcement.

The conference call for presenting the financial results as of March 31, 2020 shall take place on May 15, 2020, 17:00 local time. For joining the conference call, please contact us at ir@bvb.ro.

 

 



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