Bucharest Stock Exchange posts 41% drop in operating profit in Q1 2025

The Bucharest Stock Exchange (BVB) posted a 41% drop in operating profit in the first quarter of this year, falling to 1.20 million lei compared to 2.05 million lei in Q1 2024, amid a decrease in operating revenues, partially offset by a reduction in operating expenses.According to the report published Wednesday, at the individual level, BVB reported operating revenues of 7.81 million lei, a 15% decrease compared to Q1 2024, mainly due to a 26% decline in trading revenues, driven by a 32% drop in trading activity on the main equities market compared to the previous year. This was partially offset by a 68% increase in revenues from public offerings, due to government securities issues more than three times higher than in Q1 2024. Trading revenues account for 59% of BVB's operating revenues.Operating expenses at the individual level in the first quarter of 2025 amounted to 6.61 million lei, down 7% from the previous period, due to cost-cutting efforts in the context of low trading revenues.At group level, BVB reported operating losses of 1.31 million lei in the first quarter of this year, compared to an operating profit of 2.25 million lei in Q1 2024, mainly due to a significant increase in operating expenses at CCP.RO (the central counterparty), according to the report.The group also posted net losses of 1.19 million lei.Consolidated operating revenues in Q1 2025 were 16.53 million lei, a 4% decrease, influenced by the trading segment's performance, largely offset by an 8% increase in revenues from the post-trading & registry segment.Revenues from the post-trading/settlement segment (DC) in Q1 2025 increased by 2% (or 134,000 lei), driven by a 15% rise in participant admission and maintenance revenues, due to a higher percentage-based maintenance fee, which offset a 31% decline in settlement revenues stemming from lower OTC transaction settlement income.Revenues from T2S settlement operations (settlements in euros for financial instruments denominated in euros) rose by about 93%, though they still represent only 6% of DC's total operating revenues. This segment accounts for 67% of Central Depository (DC)'s operating revenues.Registry segment revenues (DC) increased by around 20% compared to the first three months of last year, driven by an 8% rise in revenues from services provided to issuers of financial instruments, due to tariff increases - including the issuer maintenance fee - as well as one-off operations. This segment makes up 33% of DC's operating revenues.Consolidated operating expenses in Q1 2025 rose by 19% compared to Q1 2024, reaching 17.84 million lei. This increase was primarily due to a 3.3 million lei rise in CCP.RO's operating expenses compared to the previous period, resulting from new costs associated with the authorisation and implementation of the local central counterparty. Additionally, consolidated personnel expenses increased by 8%, due to the annual application of the Group-level remuneration and retention policy and the need to hire additional staff for BVB and CCP.RO.