Bucharest Stock Exchange (BVB) reported first-quarter 2012 net profit of RON 2.77 million,up 26% compared with the same quarter from 2011 and up 140% from fourth-quarter 2011 (Q1.2011: RON 2.20 million, Q4.2011: RON 1.15 million). The successful closing of the secondary public offer for 15% of the shares issued by the national company of electricity transmission, Transelectrica, was one of the main events which influenced BVB’s operating activity in the first quarter of 20121.
First-quarter 2012 sales revenue was RON 5.03 million, down 15% compared to the strong first quarter of 2011 (Q1.2011: RON 5.98 million), following the listing of Fondul Proprietatea on January 25, 2011, which determined a quarterly peak in the value of trading on equity market from 2008 to date. Sales revenue is up 4% from fourth-quarter 2011 (Q4.2011: RON 4.84 million).
Structured products market expanded three times in first-quarter 2011 compared to the first- quarter 2011, due to diversifying offer and increasing investors’ interest in these instruments. The volume traded in first-quarter 2011 was almost 8 million structured products, up 70% from fourth-quarter 2011, following the extension of trading hours from 16:45 to 18:30, beginning January 16, 2012. Listing and data vending revenues were up 39% and 58% sequentially in first-quarter 2012 compared to first-quarter 2011.
Operating expense was RON 3.10 million, down 41% from fourth-quarter 2011 and up 4% from the first quarter in 2011 (Q1.2011: RON 2.98 million, Q4.2011: RON 5.22 million). The significant drop from the fourth-quarter is due to the fact that expenses are returning within a typical level for a first quarter of the year. The 4% rise compared to the same quarter in 2011 is due to higher expenses on organizing January GSM, on taxes paid to NSC, on developing some market segments, on VAT, following the decrease in the pro-rata quote for VAT to deduct calculated by BVB for year 2012, and on new executive search services employed. These higher expenses were compensated with lower base personnel expense, savings on rent and other expenses.
First-quarter 2012 operating result was RON 1.93 million, compared to a loss during the fourth quarter of 2011 (Q4.2011: -0.38 mil.lei) and is down 36% compared to the first quarter of 2011 (Q1.2011: RON 3.00 million). The financial result was profit of RON 1.24 million compared to a loss in first-quarter 2011 (Q1.2011: -RON 0.38 million).
Given the first-quarter 2012 net profit of RON 2.77 million, the net profit margin increased to55% (Q1.2011: 37%).Bucharest Stock Exchange will hold on 11 May 2012 a conference call to discuss first-quarter 2012 results at 15:30 Eastern Time.
A live audio Webcast of the call will be available at the following link http://www.bvb.ro/conference. A permanent reply of the conference will be available on theInvestor Relations section of our web site at www.bvb.ro shortly after the conference end.
1The financial data have not been audited and represent the individual results of the Bucharest Stock Exchange,drawn up according to the Romanian Accounting Standards (RAS); the financial indicators are expressed inmillion RON and they are rounded off to the nearest integer, resulting in small reconciliation differences.