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BURSA DE VALORI BUCURESTI SA - BVB

Half-year financial results as of June 30, 2019

Release Date: 8/9/2019 8:30:10 AM

IRIS Code: C8386

 

HALF-YEARLY FINANCIAL RESULTS AS OF JUNE 30, 2019

The Bucharest Stock Exchange (BVB) ended the first half of the year with all the indices on the positive side and double-digit increases. The BET index rose by almost 20% in the first six months, and the BET - Total Return (BET-TR) index crossed the threshold of 14,000 points, an increase of almost 30%. This accelerated growth also appeared as a result of a base effect because the market was very low at the end of last year.

The market capitalization of all listed companies on the regulated market of BVB exceeded EUR 34.8 bn in the last trading session of June 2019, compared to EUR 30.6 bn at the end of 2018, up 14%.

The regulated shares market, excluding initial and secondary public offers, which generated 93% of total trading revenues in the first half of 2019 (1H 2018: 60% of total trading revenues of BVB) registered a 12% increase in the traded value, respectively RON 5.25 bn, a result of the interest of investors for trading on the secondary market.

Trading activity for all markets, including offers, decreased by 25% in the first six months of 2019 compared to the similar period of 2018, from RON 7.46 bn to RON 5.60 bn. The decrease comes, to a large extent, from the drastic decrease in the value of the offers carried out on the main market of shares and bonds, both of the initial public offers and especially of the secondary public offers, from RON 2,373 mn in 1H 2018 to RON 57 mn in 1H 2019. The lack of offers was strongly influenced by the investors' perception of the changes in the legislative framework in Romania, with a direct impact on the capital market.

Compared to the first half of 2018, the settlement activity concluded at the BVB (in lei and euros) by the Central Depository decreased by 3% to the value of RON 4.84 mn, due to the decrease of the value traded at BVB while the revenues obtained from the registry activity decreased by 20% from RON 2.92 mn to RON 2.33 mn, as a base effect, considering the one-off type revenues registered in the first half of 2018.

The operating revenues of the BVB Group registered a 17% decrease in the first six months of the year compared to the similar period of 2018, to a level of RON 17.41 mn (1H 2018: RON 21.30 mn), decrease mainly determined by the decrease of the income from commissions related to the total value of the "offers" transactions carried out on the BVB markets.

The consolidated operating expenses amounted to RON 15.18 mn, registering an increase of 4.7% compared to the first six months of last year (1H 2018: RON 14.49 mn), mainly due to the increase in expenses with depreciation and amortization of fixed assets, determined by the investments made by the group in 2018, of the expenses with other services provided by third parties and of the marketing expenses, as a result of the intensification of the efforts to promote the capital market in 2019 compared to the previous year, especially through the events organized by the BVB Group for the promotion of the capital market.

The BVB group registered a 62% decrease in the consolidated operating profit in the first half of 2019 to the value of RON 2.57 mn (1H 2018: RON 6.81 mn), the main cause being the drastic decrease in the value of the offers carried out on the shares and bonds regulated market.

The net financial income increased by 10% in the first six months of 2019 compared to the similar period of 2018, up to the value of RON 2.04 mn (1H 2018: RON 1.86 mn), the unrealized exchange rate differences from the revaluation financial instruments in foreign currency generating a gain of RON 0.54 mn (1H 2018: gain of RON 0.41 mn).

The consolidated net profit reached the level of RON 3.87 mn in the first semester of 2019 (1H 2018: RON 6.99 mn), decreasing by 45% compared to the previous year, this being obtained in a proportion of 73% by the trading segment of the Group. The profit attributable to the shareholders of the parent company was RON 3.60 mn (1H 2018: ROM 6.74 mn).

On June 27, 2019, BVB started to pay the dividends from the 2018 net profit of RON 9.02 mn, representing 100% of the net profit after reserves. The gross dividend for 2018 was RON 1.12593 / share.

 

Financial and operating highlights

 

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

 

1H

2019

1H

2018

Change (%)

2Q

2019

2Q

2018

Change (%)

 

 

 

 

 

 

 

Operating revenue

17.41

21.30

-17%

8.89

9.41

-6%

Operating expenses

15.18

14.49

5%

7.93

7.37

+8%

Operating profit

2.57

6.81

-62%

0.95

2.04

-54%

Net financial revenue/(expenses)

2.04

1.86

10%

0.35

1.65

-79%

Profit before tax

4.67

8.67

-46%

1.36

3.69

-63%

Profit from continuing operations

3.87

7.22

-46%

1.11

3.05

-64%

Profit from discontinued operation

      -

(0.23)

      -

0.04

(0.09)

143%

Profit for the period 

3.87

6.99

-45%

1.15

2.96

-61%

EPS attributable to owners (RON/share)

0.4475

0.8371

-47%

0.1221

0.3430

-64%

 

 

Profitability ratios (%)

 

1H

2019

1H

2018

 

2Q

2019

2Q

2018

 

 

 

 

 

 

 

 

Operating margin

14%

32%

 

11%

22%

 

Net margin

22%

33%

 

13%

31%

 

Return on equity

3%

6%

 

1%

3%

 

* Indicators based on consolidated financial results

 

Individual financial performance – BVB only, (RON mn, unless otherwise stated), including intra-group transactions

 

1H

2019

1H

2018

Change (%)

2Q

2019

2Q

2018

Change (%)

 

 

 

 

 

 

 

Operating revenue

10.32

13.34

-23%

4.94

5.13

-4%

Operating expenses

8.41

7.63

10%

4.39

3.81

15%

Operating profit

1.92

5.71

-66%

0.55

1.32

-59%

Net financial revenue/(expenses)

3.03

2.53

20%

1.60

2.37

-32%

Profit before tax

5.00

8.07

-38%

2.20

3.63

-39%

Profit for the period

4.37

6.86

-36%

2.02

3.14

-36%

 

 

Operating highlights, trading segment (RON mn, all markets)

Trading value

1H

2019

1H

2018

Change (%)

2Q

2019

2Q

2018

Change (%)

 

 

 

 

 

 

 

Shares, units, rights

5,424

5,810

-7%

2,658

2,246

18%

   Out of, Shares traded on regulated market, without offers

5,255

4,692

12%

2,611

2,039

28%

Certificates

75

182

-59%

38

95

-60%

Fixed-income

104

1,466

-93%

     42

1,337

-97%

Total

5,603

7,457

-25%

2,738

3,677

-26%

Avg. daily value (shares, without offers)*

43.07

38.45

12%

42.80

33.98

26%

Avg. daily value (shares, including offers)*

43.52

46.97

-7%

42.91

36.36

18%

*Value for the Regulated market

 

 

Operating indicators, post-trading and registry segments

 

1H

2019

1H

2018

Change (%)

2Q

2019

2Q

2018

Change (%)

 

 

 

 

 

 

 

No. companies with registry contract at CSD

879

887

-1%

879

887

-1%

No. procedures resulted from issuers’ corporate events

353

296

24%

339

273

24%

Local settlement

 

 

 

 

 

 

Value of trades settled on net basis (RON bn)

12.91

13.93

-7%

6.20

5.09

22%

Value of trades settled on gross basis (RON bn)

2.04

1.94

5%

0.98

0.73

34%

Settlements through T2S platform (euro)

 

 

 

 

 

 

Value of trades settled on gross basis (EUR mn)

2.79

517.29

-99%

1.57

515.28

-100%

 

 

 

 

 

 

 

Avg. monthly portfolio managed by custodians (RON bn)

39.88

41.39

-4%

42.01

40.48

4%

 

 

Share statistics for BVB as parent company (RON, unless otherwise stated)

 

1H

2019

1H

2018

Change (%)

2Q

2019

2Q

2018

Change (%)

 

 

 

 

 

 

 

Closing price (e-o-p)

22.30

24.90

-10%

22.30

24.90

-10%

Weighted average price

22.28

27.58

-19%

22.15

25.96

-15%

High (intraday)

24.60

30.70

-20%

23.00

28.70

-20%

Low (intraday)

21.10

22.90

-8%

21.70

22.90

-22%

Total trading value (RON mn)

6.68

17.31

-61%

4.26

6.00

-29%

Average trading value (RON mn)

0.05

0.14

-61%

0.07

0.10

-30%

 

The Half-yearly Report as of June 30, 2019 shall be available for shareholders, investors and general public as of August 9, 2019, 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, 2019 shall take place on August 9, 2019, 16:00 local time. For joining the conference call, please contact us at ir@bvb.ro.  

 



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