Warsaw Stock Exchange Posts Positive Q3 2016 Results

Third quarter was the best three months in 2016 in terms of trading in equities.

The Warsaw Stock Exchange, known by its Polish acronym GPW Group (Gielda Papierow Wartosciowych), today reported its financial results for the third quarter ending September 30, 2016, showing largely improved performance when compared to the prior quarter, and mixed results across several reported statistics from a year-over-year perspective.

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During Q2 2016, GPW Group unveiled operating revenues of PLN 73.7 million ($18.63 million) which represents a loss of -6.3% percent YoY from PLN 78.7 million ($18.63 million) in Q3 2015. This figure was largely influenced by the negative impact of a seasonally weaker quarter on the commodity market. Furthermore, the exchange completed the last quarter through September with an overall profit of PLN 40.4 million ($10.22 million), corresponding to a jump of 34.0 percent YoY from PLN 30.1 million ($7.61million) in Q3 2015.

Operating costs in the third quarter decreased by 25.7% QoQ and by 34.8% YoY to hit a record low at PLN 28.3 million ($7.15 million). The savings were mainly attributed to the consistent cost regime across the GPW Group, as demonstrated by lower operating expenses of all categories.

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Financials Breakdown

Revenues generated by the financial market unit between June and September, which contributed 63.5% of total revenue, amounted to PLN 46.8 million ($11.82 million), 9.2% less than the unit obtained in the third quarter in 2015, while captured a QoQ jump of 8.8 percent. In addition, total revenues from trading on the financial market stood at PLN 30.9 million ($7.81 million) in the third quarter, having fallen by -14.6% from a year earlier.

Meanwhile, the group obtained revenues from the commodity market that totalled PLN 26.6 million ($6.72 million) in the third quarter of 2016, which reflected a marginal decrease of -0.2 percent compared with the period from 1 July to 30 September 2015. However, revenues generated by trading in this segment was higher by a factor of 6.7 percent YoY to PLN 13.6 million ($3.44 million) from PLN 12.8 million ($3.23 million) in Q3 2015.

Małgorzata Zaleska, President of the Management Board of GPW, commented on the Q3 results: “We are glad to see a clear increase in investor activity on the financial market. We support it with continued initiatives stimulating liquidity on the cash and derivatives market. We have not only extended the promotions on the equity market but also introduced new promotions addressed to clients who build the quality of the order book. We are steadily adding new products to our offer: we have introduced futures on five more stocks. We can already see the positive impact of our initiatives, and we expect the trends to continue in a longer term.”

Paweł Dziekoński, Vice President of the GPW Management Board, added: “We are determined to pursue a strict cost regime, taking into account market and macroeconomic conditions. We are monitoring the costs of all GPW Group companies and implementing effective changes wherever we can generate tangible benefits. Such solutions combined with initiatives stimulating investor activity ensure stable financial results which we want to share with our shareholders.”

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