Market News


BURSA DE VALORI BUCURESTI SA - BVB

Preliminary financial results as of December 31,2016

Release Date: 2/14/2017 8:02:39 AM

IRIS Code: D7135

The fourth quarter of 2016 was marked by the largest IPO of a private company that took place on the Bucharest Stock Exchange. The shares of Romania’s largest private healthcare services provider, MedLife (M), started trading on December 21, 2016, following the successful completion of the  Initial Public Offer (IPO) of RON 230 mn, the equivalent of EUR 50.5 mn, for a package of 44% of the company. In this context, a series of new transactions are expected to take place during 2017.

As to the public offerings, between 6th and 13th of October, a public offering for sale of 6.4% of OMV Petrom shares took place, initiated by Fondul Proprietatea. The value executed through the Bucharest Stock Exchange was RON 682.3 mn(EUR 151 mn).

Overall, the total value traded on the stock market in last three months of 2016 was nearly RON 3 bn, a third more than in the 3Q 2016 and up to 10% compared to 4Q 2015. 

Bucharest Stock Exchange  main indices, BET and BET Total Return (BET-TR) followed an upward trend and ended up the Q4 2016 with an increase of more than 2%. The highest yearly growth rate was registered by the BET-TR (it reflects the evolution of the most ten liquid shares listed on BVB included in the BET and dividends distributed to shareholders of these companies) which has gained almost 9,7% in 2016. Almost half of the companies listed on BVB distributed dividends in 2016, with an average yield of 7%.

Bucharest Stock Exchange has introduced in the beginning of October new rules for BET and BET-TR indices so that the two indices reflect the performance of the most traded companies listed at BVB which meet the highest standards in the area of investor relations and corporate governance. BET and BET-TR indices will thus have a variable number of constituents, as opposed to the currently fixed structure. The minimum number of companies will be 10 and the maximum 15. In addition to that, a Watchlist (list of eligible companies) is introduced for companies to be monitored before their inclusion in BET and BET-TR indices.

BVB shares closed the year at RON 29 per unit, up 7% over 2016, more than the increase of the main BET index.

Bucharest Stock Exchange continued the financial education projects and promotion of investments among individual investors, among which Investors Forums, launch of the Universal Platform for Investors Fluent in Finance (www.fluentinfinance.ro) and the first real trading competition in Romania called Driven by Return (www.condusderandament.ro). The competition started on October 17, 2016, and will end on February 17, 2017, using all the mechanisms and rules for trading on the Bucharest Stock Exchange. These three projects have attracted a total audience of over 100.000 people.

In addition to this, Bucharest Stock Exchange launched in November a new version of the trading platform ArenaXT Web, containing a new module for graphs analysis, improved performance, additional functions and features for customising the workspace. Currently, 13 brokers offer access to the ArenaXT platform to their clients.

As to the AeRO market, Bittnet (BNET), the first Romanian IT company listed on the SMEs market operated by the Bucharest Stock Exchange has issued pre-emptive rights for existing shareholders by May 20, 2016. These rights were traded between the 16th and 30th of December 2016, as part of a RON 0.78 mn public offer.

In the last quarter of 2016, the Central Depository has registered a rise in the value of settled transactions concluded on the BVB market following the sale of Fondul Proprietatea stake in OMV Petrom and the sale offer of MedLife shares. However, in the same period of 2016, the Central Depository has registered a noticeably higher number of cross-border operations and started 23 new dividend payments and other rights on behalf of financial instruments holders.

Following the coordination agreement signed in June with SIBEX Sibiu Stock Exchange, in December, BVB shareholders approved in principle the merger with SIBEX-Sibiu Stock Exchange, including the update of valuation for the companies at December 31, 2016 and a due dilligence for Sibex. In this regards, a consortium consisting of Deloitte Tax SRL, Deloitte Audit SRL and Reff & Asociatii was selected.

 

·         BVB Group registered increased results, 4Q being for BVB Group a period of strengthening the 2016 annual results.

·         Consolidated operating revenue recorded in 4Q 2016 increased by 2% compared with 4Q 2015 to RON 8.63 mn, the biggest part being generated by the BVB trading segment (over RON 5 mn). BVB Group operating expenses continued a downward trend. In the same time the operating profit recorded in 4Q 2016 increased to a level of RON 1.93 mn.

·         BVB Group consolidated net profit rose 49% in 4Q 2016 compared to the same period of 2015 to RON 3.58 mn, mainly due to results registered by the operations trading segment of the Group.

·         Since the beginning of 2016, the increase by nearly 4% of the consolidated operating revenue and the decrease with over 6% in the consolidated operating expenses, generated together an advance of 89% of the operating profit to RON 6.07 mn ( 2015 : RON 3.22 mn) and 8 percentage points improvement in operating margin. The trading segment of the Group generated an operating profit in 2016 of RON 5.41 mn, representing the main contributor in achieving the Group's operating result.

·         The consolidated net financial revenue of 2016 year of RON 3.09 mn (2015: RON 4.74 mn) was recorded mainly from the financial investments in government securities and bank deposits of RON 2.99 mn (2015: RON 3.32 mn). This decline is a result of the low level of liquidity available to the company after the dividend payments for 2015 year and the drop in yields for the government securities and bank deposit. The decrease of the financial result in 2016, was driven mainly by the impact of lower unrealized exchange differences, recorded from the year end reevaluation of the investments in government securities and bank deposits in foreign currencies, to RON 0.57 mn (2015: EUR 1.8 mn).

·         The consolidated net profit of the 2016 year was RON 7.87 mn, up 19% from the same period of the last year. The trading segment of the Group generated 85% of the 2016 consolidated net profit, while net margin increased to 25% from 22% during the previous year (2015)

 

Financial performance, consolidated – BVB Group

(RON mn, unless otherwise stated)

2016 (prelim)

2015

Change (%)

4Q 2016 (prelim)

4Q

2015*

Change (%)

 

 

 

 

 

 

 

Operating revenue

31.93

30.83

4%

8.63

8.48

2%

Operating expenses

25.86

27.61

-6%

6.71

7.58

-12%

Operating profit

6.07

3.22

89%

1.93

0.90

115%

Net financial revenue/(expenses)

3.09

4.74

-35%

2.06

2.01

2%

Profit before tax

9.16

7.96

15%

3.99

2.91

37%

Profit for the period

7.87

6.60

19%

3.58

2.40

49%

Total comprehensive income

7.83

7.51

4%

3.74

3.28

14%

EPS attributable to owners (RON/share)

1.0023

0.8434

19%

0.4323

0.3168

36%

* The financial results for the 4Q 2016 are prepared in accordance with IFRS and are not audited. The financial results for 2015 are final and audited

 

The full financial report as of 31 December 2016 is available for shareholders, investors and general public as of 14 February 2017, 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 / Financial figures / Financial statements” section, at http://www.bvb.ro/InvestorRelations/FinancialFigures/FinancialReports.

 



 Print

Information provided by IRIS, the news platform of the Bucharest Stock Exchange.

______________________

Bucharest Stock Exchange ("BVB") is not responsible for the content of this News item. Issuers whose financial instruments are traded on markets operated by BVB are required to report in accordance with current legal and regulatory provisions. BVB publishes these Reports as market administrator, appointed by ASF. When, for investors’ information, Reports are published, either signed by different persons, or with conflicting information, legal liability lies fully with the signatories. BVB disclaims any obligation or responsibility towards issuers or third parties, regarding the reality, completeness and accuracy of information provided by them and distributed by BVB. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.


©2016 Bucharest Stock Exchange. All rights reserved