Bucharest Stock Exchange sees 35% drop in revenues on lower trading activity

The Bucharest Stock Exchange (BVB) recorded a significant drop in revenues and profits in 2015 as the share trading volumes went down by a third compared to 2014. The market operator’s operating revenues declined by 35%, to EUR 4 million, and the net profit was down by 41%, to EUR 1.57 million, according to BVB’s preliminary results for 2015. “The main driver was the 43% decline in trading revenues, which mirrored the weaker trading activity and the effects of the trading fees cut operated in October 2014,” reads the company’s report. The share trading volume for the whole year was around EUR 2 billion, down from EUR 3 billion in 2014, as the pubic offers (initial public offerings, secondary offerings, and other share placements) were almost non-existent. Local fund Fondul Proprietatea’s sale of a 4% stake in gas producer Romgaz, for EUR 103 million, was the only notable transaction on the Bucharest Stock Exchange last year. The average daily stock trading, excluding public offers, also declined by 16% to EUR 7.3 million. The main market index BET ended 2015 with a decline of 1.1% while its total return version BET-TR gained 3.1% after incorporating dividends paid by constituent companies. Bucharest Stock Exchange’s shares mirrored the weaker market environment and the operator’s financial results and recorded a 21% drop at end-December 2015 compared to December 2014. Since the beginning of this year, BVB’s shares lost another 4.8%. The company’s market capitalization is currently some EUR 44 million (as of February 9, 2016). Andrei Chirileasa, andrei@romania-insider.com