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Preliminary Estimated Consolidated Financials for Q2 2021

2021-09-02 19:41:18

PRESS RELEASE

  • The Warsaw Stock Exchange Group (GPW Group) has published the preliminary estimated consolidated financials of Q2 2021
  • As a public company, the Warsaw Stock Exchange (GPW) complies with the Best Practice for GPW Listed Companies 2021 (Best Practice 2021)

The Warsaw Stock Exchange Group (GPW Group) has published the preliminary estimated consolidated financials of Q2 2021.

The Exchange Management Board has decided to publish the preliminary estimated consolidated financials of Q2 2021 in accordance with the following principles of the Best Practice for GPW Listed Companies 2021 (Best Practice 2021), which the Warsaw Stock Exchange (GPW) complies with as a public company:

  • Principle 1.2 of the Best Practice for GPW Listed Companies 2021 (Best Practice 2021):
    “Companies make available their financial results compiled in periodic reports as soon as possible after the end of each reporting period; should that not be feasible for substantial reasons, companies publish at least preliminary financial estimates as soon as possible.”;
  • Principle 1.1 of the Best Practice for GPW Listed Companies 2021 (Best Practice 2021):
    “Companies maintain efficient communications with capital market participants and provide fair information about matters that concern them. For that purpose, companies use diverse tools and forms of communication, including in particular the corporate website where they publish all information relevant for investors;” the Company declared compliance with those principles in current report EBI No. 1/2021 of 29 July 2021 “Statement of the Company’s Compliance with the Principles of the Best Practice for GPW Listed Companies 2021.”

The preliminary estimated consolidated financials of Q2 2021 v. Q1 2021 are as follows:

  • Sales revenue: PLN 98.8 million, down by 12%;
  • Operating expenses: PLN 51.1 million, down by 24%;
  • Operating profit: PLN 49.8 million, up by 11%;
  • EBITDA: PLN 58.4 million, up by 9%;
  • Net profit: PLN 45.7 million, up by 18%. 

The revenue was driven by quarter-on-quarter changes in turnover volumes on the markets in Q2 2021:

  • total equities turnover value on the GPW Main Market down by 20.1%;
  • total derivatives turnover volume down by 11.2%;
  • total electricity turnover volume up by 11.8%;
  • gas turnover volume up by 1.0%;
  • RES property rights turnover volume down by 0.5% and energy efficiency property rights turnover volume up by 57.5%.
  • The decrease in operating expenses was mainly due to the fact that provisions were set up against the estimated PFSA supervision fee for 2021 at PLN 14.2 million in January 2021.

The Company makes the reservation that the published figures are estimates subject to change.

The consolidated financial statements of the Warsaw Stock Exchange Group and the financial statements of the Warsaw Stock Exchange for H1 2021 will be reviewed by the auditor, which may result in adjustments of the financial results. The final financial results of H1 2021 will be published by the Company in a periodic report for H1 2021 to be released on 16 September 2021.

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History of the WSE
On 12 April 1991, the then Ministers of Ownership Transformation and Finance signed the Deed of Incorporation of the joint stock company "Giełda Papierów Wartościowych w Warszawie S.A." Four days later, on the day of the WSE's inaugural session, shares of five companies were traded and the turnover amounted to PLN 1990. Since 2018, the WSE has been classified as one of the 25 developed markets by the FTSE Russell agency. The history of the capital market on Polish soil dates back to the early 19th century. The first in Poland and one of the few in Europe, the Merchant Exchange, was established in Warsaw on 2 May 1817, soon became the largest market in Tsarist Russia, responsible for 5-6% of global securities trading. A thriving stock exchange, accounting for 90% of the domestic turnover, also operated in Warsaw in the interwar period. After the period of the People's Republic of Poland and the planned economy, it was not until 1989, with the political and economic transformation, that the Polish capital market was able to develop again.

Stock exchange today
The average EoB equity daily trading volume on the WSE was PLN 804.7 million in August 2021. The Main Market listed 429 companies (382 domestic and 47 foreign) and the NewConnect market listed 366 companies (362 domestic and 4 foreign) at the end of August 2021. Last year, the WSE Group generated record sales of PLN 403.8 million and one of the highest ever net profits of over PLN 151 million. According to the Federation of European Securities Exchanges, in 2020 the WSE ranked first in Europe in terms of percentage increase in equity turnover and third in terms of the value of initial offerings. At the end of 2020, the WSE was also the second market in Europe in terms of liquidity and achieved the status of world leader in terms of the number of listed companies in the gamedev sector.

WSE position in the region
The WSE is the leader among stock exchanges in Central and Eastern Europe by the number of listed companies and the total capitalisation of domestic companies. The WSE's share in trading on stock exchanges in the region is 81%. The WSE leads the initiative of the Three Seas Stock Exchanges and aspires to the role of a regional hub for young technological companies with huge potential, the so-called unicorns. Negotiations are currently underway for the WSE to acquire a majority stake in the Armenian Exchange.

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The Warsaw Stock Exchange Group (GPW Group) operates trading platforms for shares, Treasury and corporate bonds, derivatives, electricity and gas, and provides indices and benchmarks including WIBOR and WIBID. The index agent FTSE Russell classifies the Polish capital market as a Developed Market since 2018. The markets operated by the GPW Group are the biggest in Central and Eastern Europe. For more information, visit www.gpw.pl