In 9M 2019 the company observed a decrease in revenue of 9% YoY, decrease in EBITDA of 34% and a net profit of RON 6.7m (-18%).

Bucharest Stock Exchange (Bursa de Valori Bucuresti – BVB) published their 9M report and we are bringing you key takes from it. According to the report, operating revenues of BVB in 9M 2019 have amounted to RON 26.5m (-9%YoY).

Such a decrease could partly be attributed to drop in offers on the main market (shares and bonds) for RON 2.2b while total traded value for all markets, including offers, has decreased for 15% YoY. The biggest share in revenues on BVB stand-alone revenue come from trading fees, namely 74%, that decreased due to decrease in offers (-RON 3.2m YoY) which was partially offset by increase in values of transactions on regular market (+0.8m YoY). The revenues related to the post-trading segment increased by 2% YoY (from RON 7.3m to RON 7.4m) as a result of the advance of the revenues from the cross-border settlement services while the revenues related to the registry segment as well as the registry segment – Central Depository (DC) decreased by 16% YoY (from RON 4.2m to RON 3.5m).

It is also noteworthy that in Q3 BVB has published important news that the Global index provider FTSE Russell promoted Romania to Emerging Market from Frontier Market status. The news will take effect from September 2020 and you can read more about it on the following link. This has partly resulted in BET index rally, which continued its growth by 8.6% during the Q3. Another important factor for index growth support was solid performance of the Romanian economy and the strong H1 earnings results posted by the Romanian companies.

The operating expenses were up 4% YoY to RON 22.4m mainly as a result of the advance of other operating expenses (mainly amortization and depreciation of fixed assets expenses). EBITDA has amounted to RON 6.1m (-34% YoY) while EBIT is down 46% YoY as a result of both, decrease of the operating revenues by 9% and the increase of the operating expenses by 4%.

Going further down the P&L, BVB observed a high increase in net financial profit of 42%, amounting to RON 3.9m (compared to RON 2.8m). Such an increase was impacted by increase in unrealized FX gains from financial instruments in foreigncurrency that generated a gain of RON 1.28 mn (vs. RON 0.5m in 9M 2018), but also as a result of the sale of financial assets (government securities) that generated a gain of RON 0.4m.

In 9M, the company observed a decrease in net profit of 18% YoY, amounting to RON 6.7m while 78% was generated by the Group’s trading segment.

BVB Performace (9M 2018 vs 9M 2019) (RON m)