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BURSA DE VALORI BUCURESTI SA - BVB

H1 2020 report

Release Date: 8/13/2020 8:30:03 AM

IRIS Code: D36C4

Key events, 1H2020

Ø  The total value of transactions on all markets, including offers, + 7%, from RON 5.42 bn to RON 5.79 bn, due to the increase in the value of secondary public offers on the main stock market by RON 0.30 bn

Ø  The total value of transactions on the regulated stock market, excluding offers, remained at a similar level to that of 1H 2019, respectively RON 5.23 bn. Transactions with shares, excluding initial and secondary public offerings, represent 84% of the total values traded in 1H 2020, respectively 92% in 1H 2019

Ø  The value of transactions with structured products increased more than 4 times, compared to 1H 2019, from RON 75 mn to RON 377 mn

Ø  FTSE Russell confirmed that Romania is on track for September promotion to secondary emerging market status. Banca Transilvania and Nuclearelectrica are the two issuers expected to be part of the FTSE Emerging Markets indices

Ø  The online investor events continued with good participation from both issuers and investors. Besides the broker organized events, BVB co-organized together with a French partner, CF&B Communication an online event targeting continental Europe investors

Ø  In early June, Bittnet became the first company to be transferred from the Aero market to the main regulated market. Bittnet was listed on the MTF for 5 years. Six bond issuances started trading on the BVB platform in Q2: Raiffeisen Bank bonds on the regulated market and the bonds issued by Vivre Deco, Omro IFN, Artprint, Norofert and Agroland on the Aero market

Ø  On June 5, 2020, BVB started to pay the dividends from the 2019 net profit of RON 6.56 mn, representing 100% of the net profit after reserves. The gross dividend for 2019 was RON 0.822227 / share

 

Evolution of financial performance, 1H2020-consolidated results BVB Group

Ø  The consolidated operating revenues of the BVB Group in 1H 2020 were RON 19.58 mn (1H 2019: RON 17.74 mn), +10%, + RON 1.84 mn, growth influenced by all business segments of the Group

Ø  Revenues from the trading segment (BVB) increased by 11%, + RON 1.15 mn (from RON 10.16 mn to RON 11.31 mn) as a result of the increase of the traded value - secondary public offers on the main stock market

Ø  Revenues related to the post-trading segment (DC) increased by 5% (from RON 4.90 mn to RON 5.15 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, +13%, from RON 2.33 mn to RON 2.63 mn, mainly due to the registration of “one-off” revenues

 

Half-yearly individual results*:

Ø  Trading revenues – BVB individual*, increased by 20%, + RON 2.11 mn (from RON 10.32 mn to RON 12.44 mn) mainly due to the advance of revenues from shares trading, secondary public offering by RON 1.23 mn

Ø  DC individual* revenues increased by 8%, + RON 0.55 mn in 1H 2020 compared to 1H 2019, from RON 7.29 mn to RON 7.83 mn

 

* including intra-group transactions

 

Ø  Consolidated operating expenses – 1H 2020, +6%, respectively RON 0.87 mn, from RON 15.18 mn lei to RON 16.04 mn, mainly as a result of the advance of personnel expenses by RON 0.63 mn and expenses with services provided by third parties by RON 0.42 mn

 

Half-yearly individual results*:

Ø  Operating expenses, BVB individual*, H1 2020, -3%, - RON 0.27 mn, from RON 8.41 mn lei to RON 8.13 mn mainly due to the decrease of other operating expenses

Ø  Operating expenses, DC individual *, H1 2020, +8%, + RON 0.51 mn, from RON 6.52 mn to RON 7.04 mn mainly due to the advance of personnel expenses by RON 0.30 mn, as a base effect, considering that in the first 3 months of 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 – 1H 2020, +38%, from RON 2.57 mn to RON 3.54 mn as a result of the advance of operating revenues by 10% while the advance of operating expenses was 6%

Ø  Operational profit, BVB individual* - 1H 2020, +125%, from RON 1.92 mn to RON 4.31 mn, with an operating margin of 35%. This includes intra-group transactions (for trading segment values, excluding intra-group transactions - see Note 6 Segment reporting)

Ø  Operational profit, DC individual* - 1H 2020, +5%, from RON 0.76 mn to RON 0.80 mn, with an operating margin of 10%. 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 – 1H 2020, -23%, decrease from RON 2.04 mn to RON 1.58 mn, as a result of the reduction of unrealized exchange rate differences from the revaluation of financial instruments in foreign currency, which generated a gain of RON 0.05 mn vs. RON 0.55 mn in 1H 2019, decrease partially covered by the increase of interest income by 0.16 mn, up to the value of RON 1.65 mn

Ø  Net financial income, BVB individual* - 1H 2020, -41% or RON 1.23 mn, from RON 3.03 mn to RON 1.80 mn lei influenced both by the reduction of interest income and unrealized differences of exchange rate, the effect of the decrease of the value of investments in government securities and deposits as a result of the investment of EUR 10 mn in the share capital of CCP.RO. For the trading segment values, excluding dividend income from the Central Depository - see Note 6 Segment reporting

Ø  Net financial income, DC individual* - 1H 2020, -27% or RON 0.10 mn, from RON 0.39 mn to RON 0.28 mn. For the post-trading and registry segment values - see Note 6 Segment reporting

 

 

Ø  Consolidated net profit of the BVB Group – 1H 2020, +10%, from RON 3.87 mn to RON 4.24 mn, 75% being generated by the trading segment of the Group

Ø  Net profit, BVB individual* - 1H 2020, +23%, from RON 4.37 mn to RON 5.32 mn, with a net margin of 43%. This includes intra-group transactions (for trading segment values, excluding intra-group transactions - see Note 6 Segment reporting)

Ø  Net profit, DC individual* - 1H 2020, -3%, from RON 0.99 mn to RON 0.96 mn, with a net margin of 12%. 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 June 30, 2020 shall be available for shareholders, investors and general public as of August 13, 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 conference call for presenting the financial results as of June 30, 2020 shall take place on August 13, 2020, 17:00 local time. For joining the conference call, please contact us at ir@bvb.ro.

 

 



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