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BURSA DE VALORI BUCURESTI SA - BVB

Half-yearly financial results as of June 30, 2016

Release Date: 8/11/2016 8:30:04 AM

IRIS Code: 86CC0

Half-yearly financial results as of 30 June 2016

 

The second quarter was marked by a higher turnover on the main market, which determined an increase of the traded value by 5.6% y-o-y during the first half of the year, compared to a 24% y-o-y drop for markets worldwide, according to the Market Highlights report of the World Federation of Exchanges. The higher turnover was in the context of Romania’s top position in the world ranking of dividend yields, according to analysts, with an average of 8% for the main index BET in 2016.

An important result achieved in the recent months was that the outflow of individual investors stopped, following broad educational and marketing campaigns employed by BVB and extensive media coverage. Such actions will be intensified in the following months with a new trading competition, a corporate information portal and an educational platform.

The range of instruments available to investors was enriched with the launch of new instruments, i.e. warrants, which were actively traded since the first day. Out of a total of 30, 18 warrants have Romanian shares as underlying. During the second quarter, the new framework allowing short selling and trading on margin reached new milestones with the approval of the new Financial Supervisory Authority regulation, and further approvals of the Bucharest Stock Exchange and Central Depository Codes. Starting 2 August, such operations are expected to be carried out in a new and flexible framework.

BVB launched a new reporting system for issuers called IRIS, implementing the highest international standards for a rapid and effective public disclosure of reports and announcements to investors, analysts and data vendors. Together with several other projects, BVB aims to improve the transparency and corporate governance of listed companies to facilitate investors’ investment decisions.

In addition to the above, during the first half of 2016, the Central Depository has made progress in implementation of EU market standards for corporate actions processing and T2S corporate actions standards.

·         BVB Group reported an improved financial performance during the second quarter of 2016, both at operating and bottom line levels, recovering from a weaker start of the year. With operating revenues slightly higher y-o-y to RON 7.7 mn, the consolidated operating profit for the quarter reached RON 0.9 mn, up by 21% compared to the second quarter of 2015. For the trading segment alone (represented by BVB’s operations), the operating profit marked a 45% y-o-y increase to RON 1 mn.

·         The consolidated bottom line for Apr-Jun 2016 reached RON 1.8 mn, 41% above the year-ago period, generating most of the profit for the first six months of 2016.

·         In the first half of 2016, the impact of weaker results of the first quarter generated 5% lower operating revenues in y-o-y terms to RON 14.2 mn and 5% lower operating expenses in y-o-y terms to RON 12.9 mn, following the measures taken to counter the operating revenues’ decrease. The consolidated operating profit registered a small 4% y-o-y decline to RON 1.2 mn, as the trading segment of the Group (activities performed by BVB alone) generated RON 1.3 mn compensating from this amount the lower performance of other segments.

·         The net profit for BVB Group in Jan-Jun 2016 was RON 1.8 mn, 44% below the y-o-y period, also influenced by the unrealized exchange rate losses from the revaluation of foreign currency financial assets, with a net margin of 13%. The trading segment has contributed with a half-yearly profit of RON 1.7 mn to the full Group net profit.

Financial performance, consolidated

(RON mn, unless otherwise stated)

1H

2016

1H

2015*

Change (%)

2Q

2016

2Q

2015*

Change (%)

 

 

 

 

 

 

 

Operating revenue

14.16

14.92

-5%

7.67

7.61

1%

Operating expenses

12.92

13.62

-5%

6.79

6.88

-1%

Operating profit

1.24

1.30

-4%

0.88

0.73

21%

Net financial revenue/(expenses)

0.96

2.51

-62%

1.21

0.71

69%

Profit before tax

2.20

3.81

-42%

2.09

1.44

45%

Profit for the period

1.80

3.20

-44%

1.76

1.24

41%

Total comprehensive income

1.56

3.22

-51%

1.72

1.24

38%

EPS attributable to owners (RON/share)

0.2435

0.3986

-39%

0.2320

0.1562

49%

* The financial results for 2nd quarter and 1st half of 2015 represent restated figures in accordance with IFRS and are not audited

 

The full financial report as of 30 June 2016 is available for shareholders, investors and general public as of 11 August 2016, 8:30 local time. The printed version is available at BVB’s headquarters, located in Bucharest, 34-36 Carol I Blvd, 14th floor, district 2, while the online version is available on our website www.bvb.ro, in the “Investor relations” section, at http://www.bvb.ro/InvestorRelations/FinancialFigures/FinancialReports.

 



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