Half Year Financial Report as of June 30, 2017

BVB BURSA DE VALORI BUCUREȘTI SA

 

HALF YEAR FINANCIAL REPORT AS OF JUNE 30, 2017

The Bucharest Stock Exchange (BVB) had the best quarter of the last two years, in terms of trading value in all markets, with new public offerings from private companies and new educational projects dedicated to both investors and entrepreneurs. The shareholders' decisions adopted in April determined the continuation of the merger by absorption of SIBEX - Sibiu Stock Exchange, the modification of the tariffs, the implementation of a plan for the Company's redemption of its own shares and the implementation of a share option plan for the employees and the directors of the Company, as well as to the Board members.

The value traded on all markets exceeded RON 3.7 bn in the second quarter, 34% increase comparing to the same quarter of the previous year. For the first six months, the value traded on all markets was RON 6.7 bn, 37% above the year-ago period. The main indices of the BVB, BET and BET-TR have tested the maxims of the last 9 years. The BET index, extended from March to 12 companies, reached 8,769 points in May, the highest value recorded in the first half of 2017.

The Bucharest Stock Exchange is one of the two capital markets in Central and Eastern Europe where initial public offerings (IPOs) were successfully completed in the second quarter, with a cumulative value of over EUR 208 mn (Digi Communications and AAGES), as per IPO Watch Europe Q2 2017 report made by PricewaterhouseCoopers.  

BVB has intensified its promoting actions and projects through initiatives for both investors and entrepreneurs that have led to an increase in the audience interest regarding the capital market. Regarding Romania's progress in obtaining emerging market status, BVB has continued the dialogue with the institutions evaluating the markets, such as FTSE Russell, MSCI, S&P Dow Jones and STOXX.

BVB shares rose by 37% more than the market average in the first 6 months of 2017, up to the amount of RON 32.7, with an 82% increase of the total trading value, Wood & Co and IFB Finwest acting as Market Makers for BVB’ shares.

Financial and operating highlights

·         Bucharest Stock Exchange closed the second quarter of 2017 with a 242% increase in the consolidated operating profit to the amount of RON 3.02 mn (2Q.2016: RON 0.88 mn) based on the significant increase in trading activity.

·         Consolidated net profit for the second quarter of 2017 amounted to RON 2.32 mn, up by 32% comparing with the net result obtained in the same period of the previous year (2Q.2016: RON 1.76 mn) with a net margin of 22%, while 76% of the net profit being obtained from the Group's trading segment.

·         The operating profit of the BVB Group was RON 5.98 mn, almost 5 times higher than the similar semester of 2016 (1H.2016: RON 1.24 mn), as a result of a 43% increase in operating revenues, while the operating expenses advanced by 11%.

·         The net profit for the first half amounted RON 5.15 mn (1H.2016: RON 1.80 mn), the profit attributable to the shareholders of the parent company being RON 4.76 mn (1H.2016: RON 1.87 mn).

·         The revenues generated by BVB, representing the Group's trading segment, amounted to RON 12.97 mn (excluding intra-group transactions) in the first half of 2017, a 57% y-o-y increase (1H.2016: RON 8.26 mn).

·         Revenues from the post-trading segment in the first half of 2017 of RON 4.75 mn, rose by 20% compared to the same period in 2016 as a result of the increase in the trading activity of BVB, were generated by an increase by 22% of local settlement revenues, as well as a 15% increase in revenue from admission and maintenance of the clearing-settlement and custodial system participants.

·         In the first half of 2017, the BVB Group recorded operating revenues of over RON 20.29 mn (1H.2016: RON 14.16 mn), an increase by 43% generated by all operating segments of the Group.

 

 

 

·         Regarding operational expenses, they amounted to RON 14.31 mn for the BVB Group, up by 11% compared to the first six months of previous year. The net financial expenses of the second quarter of 2017, of RON 0.36 mn (2Q.2016: RON 1.07 mn profit), were influenced by the unfavorable unrealized exchange rate fluctuations in the revaluation of foreign currency financial instruments in 2Q 2017, amounting to RON 0.95 mn (2Q.2016: RON 0.55 mn, net gain from FX differences).

 

 

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

 

1H

2017

1H

2016

Change (%)

2Q

2017

2Q

2016

Change (%)

 

 

 

 

 

 

 

Operating revenue

20.29

14.16

43%

11.10

7.67

45%

Operating expenses

14.31

12.92

11%

8.08

6.79

19%

Operating profit

5.98

1.24

382%

3.02

0.88

242%

Net financial revenue/(expenses)

0.09

0.96

-90%

(0.35)

1.21

-129%

Profit before tax

6.08

2.20

177%

2.67

2.09

27%

Profit for the period

5.15

1.80

186%

2.32

1.76

32%

Total comprehensive income

5.34

1.56

242%

2.39

1.72

39%

EPS attributable to owners (RON/share)

0.6200

0.2435

155%

0.2577

0.2320

11%

 

The complete version of the Financial Report as of June 30, 2017, is available for shareholders, investors and general public starting with August 10, 2017. The printed version is 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.roin the “Investor relations/Financial figures/Financial statements” section, at http://www.bvb.ro/InvestorRelations/FinancialFigures/FinancialReports.