BSE-Sofia Q2’16 turnover down 26% YoY to BGN 67.5m, net loss up to BGN 136k (NEUTRAL)

BSE-Sofia Q2 2016 commission revenue decreased 25% YoY to BGN 89k as turnover on the regulated market shrank 26% YoY (-9% on the quarter) to BGN 67.5m. The lowest turnover was registered in May (BGN 9.8m), the highest in June (BGN 43m). BSE total revenue came to BGN 369k (-8% YoY). Operating expenses increased by 1.5% YoY to BGN 530k due to increase in costs of hired services (+5% YoY), while compensation cost was down by 2% YoY. With BGN 30k D&A and BGN 55k financial income (-+4% YoY), net loss widened to BGN 136k, up 1.4x compared to Q2 2015. H1 2016 revenue tumbled 15% YoY with 37% decline in commission revenue to BGN 193k (turnover down 44% YoY to BGN 141.4m). At the same time, costs of hired services increased 11% YoY and compensation costs decreased by 5% YoY, thus resulting in 2% OPEX increase. Financial income flattened and the bottom line ended at a loss of BGN 277k (up 2.3x YoY).