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BURSA DE VALORI BUCURESTI SA - BVB

2022 Q1 report

Release Date: 5/12/2022 8:30:10 AM

IRIS Code: F0DD1

Financial and operating highlights

 

Standalone and consolidated financial performance for the first quarter of the year 2022 (RON mn, unless otherwise stated)

 

  BVB Standalone

GROUP

 

GRUP

 

   Q1  2022

Q1 2021

Change

(%)

     Q1 2022

Q1 2021

 

Change

(%)

 

 

 

 

 

 

 

 

 

Operating revenue

9.86

5.79

70%

15.60

9.88

58%

 

Operating expenses

 (4.97)

(3.82)

30%

 (9.92)

 (9.07)

 9%

 

Operating profit

4.89

1.96

149%

5.68

0.81

601%

 

Operating margin

50%

34%

 

36%

8%

 

 

Net financial revenue/(expenses)

 0.29

0.63

-54%

 0.73

 1.62

-55%

 

Profit before tax

 5.18

2.59

100%

6.41

2.44

163%

 

Profit for the period

 4.39

2.16

103%

 5.44

 2.03

168%

 

Net margin

45%

37%

 

35%

21%

 

 

EPS attributable to owners (RON/share)**

 0.5456

0.2686

103%

0.6444

0.2666

142%

 

Return on equity

4%

2%

 

4%

1%

 

 

                   

** Consolidated attributable profit and consolidated earnings per share are information that is presented in accordance with the requirements of International Financial Reporting Standards (IFRS) and do not represent the basis for granting BVB dividends.

The proposal for the distribution of BVB's profit in the form of dividends is made from the net profit of the Bucharest Stock Exchange SA (BVB individual) according to the dividend policy published on the BVB website, in the “Investor Relations” section.

 

Review of the standalone and consolidated financial results for the first quarter of the year 2022

Operating income BVB standalone * in Q1 2022 increased by 70% or 4.07 RON mn compared to Q1 2021, from RON 5.79 mn to RON 9.86 mn, generated by the advance of 95% of trading revenues, both on the main market - regular transactions, amid higher volatility and the increase in trading volumes generated by the outbreak of the conflict in Ukraine at the end of February, and from public offers, following the offer to sell OMV Petrom shares which generated an income of RON 1.32 mn.

Income positive evolution is also based on a readjustment of the shares portfolios following the inclusion of 11 companies listed on BVB in the FTSSE Russel indices for emerging markets, in the period September 2020 and March 2022.

Revenues from issuers taxes increased by 20%, amid the update of tariffs with the inflation rate, and market data revenues increased by + 12%, compared to Q1 2021.

Compared to Q4 2021, operating revenues increased by 20% due to the 36% advance in trading revenues, partially offset by the decrease in revenues from IT services provided to third parties in Q1 2022.

Operating revenues Central Depository (DC) standalone * increased in Q1 2022 by 39% or RON 1.62 mn compared to Q1 2021 up to the value of RON 5.83 mn, increase generated by higher revenues from both, post-trading and registry segments, result of the increase in the average value of the financial instruments portfolio and in the value of settled transactions.

Revenues related to the post-trading segment * (DC) + 39% in Q1 2022 vs Q1 2021 (from RON 2.94 mn to RON 4.09 mn), result of 27% advance of revenues from admission and maintenance participants, following the increase in commission for maintaining the quality of participant, evolution amplified by the increase in value of the portfolios managed by custodians (+ RON 0.53 mn), while the revenues from local settlement in BVB markets have increased by 79% in Q1 2022, being influenced by the values traded in BVB. This segment represents 69% of DC's operating revenues.

Revenues related to the registry segment * (DC) increased in Q1 2022 by 40%, up to the value of  RON 1.74 mn, due to revenues from services provided for issuers of financial instruments due to the increase of some tariffs, including the maintenance tariff issuers but also the revenues collected from the holders of financial instruments (+ 34%) as a result of the increase in the number of services requested. This segment represents 30% of DC's operating income.

CCP.RO Bucharest did not recorded operating income in Q1 2022.

Ø  The consolidated operating revenues of the BVB Group increased in Q1 2022 by 58% up to RON 15.60 mn (RON 9.88 mn in Q1 2021), generated by the advance of 71% or RON 4.07mn of the revenues from the trading segment, of 39% of the post-trading segment as well as of the increase of 40% of the register segment.

Compared to Q4 2021, the consolidated operating income increased by 16%, generated by the higher revenues of the trading segment (24%) and the post-trading segment (+ 8%).

Operating expenses, BVB standalone* in Q1 2022 increase of 30% or RON 1.14 mn compared to Q1 2021 up to RON 4.97 mn, mainly influenced by:

·         Advance of personnel expenses by 27% or 0.57 RON mn following the registration of the estimates related to the BVB share granting program (SOP), expenses that were not recorded in Q1 2021, the increase of the number of employees from 42 to 45 persons and increases resulting from the annual application of the Remuneration Policy (annual inflation rate indexation of wages and adjustments due to the current context of the labor market).

 

·         The advance of other operating expenses by 36% or RON 0.41 mn, generated by the reduction of the positive impact from the receivables adjustments, the advance of marketing and promotion expenses as a result of the resumption of physical events, postponed or organized online in Q1 2021, the renewal of some inventory items at the company's headquarters, the higher sponsorship expenses granted in Q1 2022, as well as the increase of administrative expenses, effect generated by the increase of inflation.

 

Compared to Q4 2021, there is a decrease of 9% or RON 0.5 mn, amid a higher level of expenses recognized in the last quarter of 2021, respectively marketing and promotion expenses (new BVB identity and TV campaign carried out between October and November 2021), staff expenses (recognition in December of the provision for untaken leave from 2021)

Operating expenses, DC standalone* in Q1 2022, increased by 10% compared to Q1 2021, from RON 3.58 to RON 3.95 mn, increase generated by the advance of 8% of personnel expenses due to the annual implementation of the remuneration (annual inflation rate indexation of wages and adjustments due to the current context of the labor market) as well as of the expenses provided by third parties, including IT maintenance, base effect of a low level of expenses in the first 3 months of 2021.

Operating expenses, CCP.RO standalone in Q1 2022 – RON 1.09 mn, compared to RON 1.75 mn in Q1 2021, a decrease of 38% or 0.66 RON mn due to the reduction of consulting expenses for authorization as a Central Counterpart, result of the capitalization of a part of the contract value into intangible assets.

Ø   Consolidated operating expenses - Q1 2022, increase of 9%, respectively RON 0.85 mn, from RON 9.07 mn to RON 9.92 mn, mainly due to:

·         16% advance or RON 0.76 mn up to the value of RON 5.49 mn, of consolidated personnel expenses, influenced, on the one hand, by the increase in the number of employees of BVB and CCP.RO and on the other hand, the annual application of the Remuneration Policy for BVB and DC (indexation and adjustment).

·         The decrease of 28% of the expenses with third parties services from RON 1.68 mn to RON 1.22 mn, result of the reduction of consulting services recorded by CCP.RO, following the capitalization of part from the consultancy contract value into intangible assets.

·         The advance of 21% or RON 0.55 mn of other operational expenses up to the value of RON 3.22 mn following the increase of the depreciation expenses related to the intangible and tangible fixed assets, of the expenses in the marketing and promotion area, as well as of administrative expenditure, effect of rising inflation.

Operating profit, BVB standalone * - Q1 2022, RON 4.89 mn, + 149% compared to Q1 2021 (RON 1.96 mn), with an improved operating margin of 50% from 34%, directly influenced by the advance of operating income.

Operational loss of standalone CCP.RO * - Q1 2022 of RON 1.09 mn, decrease of 38% compared to Q1 2021, an evolution similar to that of operating expenses considering that the company does not record operating income.

Ø  Consolidated operating profit in Q1 2022 of RON 5.68 mn, a significant increase of almost RON 5 mn compared to Q1 2021, generated mainly by the advance of consolidated operating income, recorded on all segments of the Group.

 

Ø  Net financial income, standalone BVB in Q1 2022 is RON.3 mn, down 54% compared to Q1 2021 (RON 0.63 mn), due to unrealized income from higher exchange rate differences realized in the first 3 months of 2021, amid a sharp rise in the RON / USD exchange rate.

Net financial income, standalone DC * - increase of 14% to the value of RON 0.21 mn.

Net financial income, standalone CCP.RO in Q1 2022 is RON 0.23 mn, decrease of RON 0.58 mn compared to the value recorded in Q1 2021 (RON 0.81 mn) amid a more modest increase of the RON/EUR exchange rate in the first 3 months of 2022.

Ø  Consolidated net financial income in Q1 2022 decrease of 55% compared to Q1 2021, from RON 1.62 mn to RON 0.73 mn, amid a more modest increase of the RON / EUR exchange rate in the first 3 months of the year 2022 vs. the evolution of the exchange rate in 2021.

Net profit, standalone BVB * in Q1 2022 of RON 4.39 mn, + 103% from RON 2.16 mn in Q1 2021, with a net margin of 45%, increasing from 37% in Q1 2021.

Net profit, standalone DC * in Q1 2022 of RON 1.78 mn, + 158% compared to previous period (RON  0.69 mn), result of the positive impact generated by the advance of the operating result, as well as the financial result.

Net loss, standalone CCP.RO * in Q1 2022 of RON 0.72 mn, a similar level compared to the previous period (Q1 2021: RON 0.78 mn) influenced by the level of operational loss.

Ø  Consolidated net profit of the BVB Group – recorded a significant increase of 168% compared to Q1 2021, from RON 2.03 mn to RON 5.44 mn, being directly influenced by the positive evolution of the operating result, partially offset the decrease in the financial result.

 

 



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