The Bucharest Stock Exchange published their FY 2019 results yesterday, showing a 12% YoY decrease in sales, 42% YoY decrease in EBITDA and a 33% YoY decrease in net profit.

The Bucharest Stock Exchange published their FY 2019 results yesterday, showing a 12% YoY decrease in sales. When breaking down sales by segment, revenue from the trading segment fell by RON 4.57m (from RON 23.93m to RON 19.36m) due to a decrease of the total value of the “offers” transactions carried out on the BVB markets. Meanwhile, The  revenues related to the  post-trading  segment (DC) increased  by 1% (from  RON 10.11mn  to  RON 10.25mn) as a result of the advance of the revenues from the cross-border settlement services while the revenues related to the registry segment (DC) decreased by 12% (from RON 5.26mn to RON 4.62mn) as a base effect, considering the “one-off” revenues registered in the first half of 2018.

EBITDA fell by 42% YoY as a result of above-mentioned decrease in sales, coupled with a 1% YoY increase in operating expenses. The increase in expenses was caused by as the increase in salary costs, due to the pressure of rising labour costs in the labour market and the increase in staff turnover in 2019 compared to previous years.

Below the operating line, the net financial result amounted to RON 4.4m (+22% YoY). This was mainly due to the increase of the unrealized exchange rate differences from the revaluation of the financial instruments in foreign currency that generated a gain of RON 1.06m (from RON 0.68m) in 2018, but also as a result of the sale of financial assets (government securities) that generated a gain of RON 0.54m.

Finally, net profit amounted to RON 6.8m, representing a 33% YoY decrease.

Meanwhile, on the balance sheet, the company continued to operate without any debt.

When looking at the Stock Exchange’s key operating indicators, at the end of 2019, the market value of all the companies listed on the Main Market of the BVB reached RON 180.8 bn, the equivalent of EUR 37.8bn. The total traded value for all markets, including offers decreased 15%, from RON 14.225bn to RON 12.155bn. It was mainly due to the decrease of offers on the main equity market of RON 1.48bn.

Overview of BVB’s Key Financials