Summary of GPW Group results

The GPW Group generated revenue of PLN 352.0 million in 2017 compared to PLN 310.9 million in 2016, representing an increase of 13.2% or PLN 41.1 million. The revenue included revenue from the financial market of PLN 208.8 million and revenue from the commodity market of PLN 142.1 million. The Group’s operating expenses stood at PLN 165.8 million in 2017 compared to PLN 150.2 million in 2016, representing an increase of 10.4% or PLN 15.6 million. The growth rate of revenue was greater than the growth rate of expenses. Consequently, the Group’s operating profit increased year on year in 2017.

The GPW Group generated EBITDA1 of PLN 212.2 million in 2017, an increase of PLN 28.5 million compared to PLN 183.7 million in 2016.

The GPW Group generated an operating profit of PLN 183.9 million in 2017 compared to PLN 157.9 million in 2016, representing an increase of 16.5% or PLN 26.0 million. The increase of the operating profit year on year in 2017 was mainly a result of higher revenue of the Group. The revenue increased both on the financial market and on the commodity market. The revenue on the financial market increased by 13.7% or PLN 25.2 million, and the highest increase was reported for revenue from trade in equities and equity-related instruments. The revenue on the commodity market increased by 13.4% or PLN 16.8 million, and the highest increase was reported for revenue from trade in property rights.

The net profit of the Group stood at PLN 156.1 million in 2017 compared to PLN 131.1 million in 2016, representing an increase of 19,0% or PLN 25,0 million. The increase of the net profit year on year in 2017 was driven by a higher operating profit as well as higher share of profit of associates which stood at PLN 10.1 million in 2017 compared to PLN 3.5 million in 2016.

GPW’s EBITDA2 stood at PLN 109.1 million in 2017, an increase of 19.8% compared to PLN 91.1 million in 2016.

GPW generated a separate operating profit of PLN 89.6 million in 2017 compared to PLN 71.7 million in 2016.

GPW’s net profit was PLN 69.0 million in 2017 compared to PLN 116.1 million in 2016, a decrease of 40.5% or PLN 47.1 million. The decrease of the net profit year on year in 2017 was due to the non-payment of dividend by the subsidiary TGE. Towarowa Giełda Energii S.A. paid no dividend for 2016 in 2017 as it was required to repay a credit facility and a loan taken to pay outstanding VAT.

Towarowa Giełda Energii generated an operating profit of PLN 62.0 million in 2017 compared to PLN 55.2 million in 2016, representing an increase of 12.2% or PLN 6.8 million. The net profit of TGE stood at PLN 69.3 million and PLN 52.7 million, respectively, in the periods under review, representing an increase of 31.7% or PLN 16.7 million in 2017.

IRGiT generated an operating profit of PLN 30.2 million in 2017 compared to PLN 31.3 million in 2016, representing a decrease of 3.5% or PLN 1.1 million. IRGiT generated a net profit of PLN 24.9 million in 2017 compared to PLN 26.5 million in 2016, representing a decrease of 6.2% or PLN 1.7 million.

BondSpot generated an operating profit of PLN 3.2 million in 2017 compared to PLN 1.3 million in 2016, representing an increase of 138.3% or PLN 1.9 million. The net profit stood at PLN 2.8 million and PLN 1.3 million, respectively, in the periods under review, representing an increase of 109.9% or PLN 1.4 million.

Detailed information on changes in revenues and expenses is presented in the sections below.

1 GPW Group’s operating profit before depreciation and amortisation.
2 GPW’s operating profit before depreciation and amortisation.

Consolidated profit and loss account of GPW Group by quarter in 2016 and 2017 and by year in 2015 – 2017

 20172016201720162015
PLN'000Q4Q3Q2Q1Q4Q3Q2Q1   
Sales revenue92,16981,11987,63591,03481,71273,65874,46181,031351,956310,862327,890
Financial market51,87548,85152,50055,62349,72546,67342,89144,409208,849183,698199,955
Trading34,62131,90335,96638,84633,24730,94126,56128,330141,336119,079136,948
Listing6,2786,2786,0656,3476,1405,7906,1295,87124,96823,93024,497
Information services10,97610,67010,46910,43010,3389,94210,20110,20842,54540,68938,510
Commodity market40,21531,98934,77035,11531,31826,73231,00336,201142,088125,254125,193
Trading20,17016,69917,64315,58016,49413,60714,11916,63770,09260,85762,552
Register of certificates of origin7,9635,7687,7839,1143,6645,4927,7977,95430,62824,90724,166
Clearing11,9909,4359,25810,33611,0827,5439,00711,53141,01939,16338,475
Information services *9287868578908079349327-
Other revenue792793652966692535674211,0191,9102,743
Operating expenses48,97832,50537,76546,51537,73628,27138,02646,122165,763150,155174,391
Depreciation and amortisation7,5667,3427,0246,3936,0856,7976,5416,37028,32525,79326,837
Salaries14,12212,23911,89712,50611,8359,06015,12813,83750,76449,86056,662
Other employee costs3,0702,8673,0023,1422,7702,5742,7643,19212,08111,30011,426
Rent and maintenance fees2,0982,1872,6132,6072,5492,4252,2502,2209,5059,4449,785
Fees and charges233(5,524)22911,615(11)(2,123)50111,6426,55310,00923,627
incl. PFSA fees3(5,781)-11,35745(2,140)311,2135,5799,12122,047
External service charges20,34712,18311,6509,01413,1788,3959,4567,55853,19438,58739,621
Other operating expenses1,5441,2091,3501,2381,3291,1431,3861,3035,3415,1626,433
Other income1,7671,731313309792052043483,8591,7361,962
Other expenses5593088684,4143,583360465646,1494,5532,151
Operating profit44,39850,03749,03340,43541,37245,23236,59334,693183,903157,890153,310
Financial income1,2841,3341,5381,3942,3113,4305,2461,9635,55012,9509,941
Financial expenses2,438(1,339)2,4977,5513,1992,9712,9282,98111,14712,07912,117
Share of profit of associates1,9103,6093,0451,4951,2362,2961,354(1,368)10,0593,518(1,530)
Profit before income tax45,15456,31951,11935,77341,72047,98740,26532,307188,365162,279149,604
Income tax expense5,7549,3209,1738,0278,7508,4577,1476,79132,27431,14528,062
Profit for the period39,40046,99941,94627,74632,97039,53033,11825,516156,091131,134121,542

*a new segment was extracted on the commodity market, there for the Information services data on the financial market were adjusted in previous quarters

Source: Consolidated Financial Statements, Company

 

Comment: The quarterly and annual financial data presented in this Report for the years 2016 and 2015 include adjustments following a change of the taxation of certain services provided by the subsidiary TGE with VAT and the required adjustment of the resulting VAT payments for previous years.

Note: For some items, the sum of the amounts in the columns or lines of the tables presented in this Report may not be exactly equal to the sum presented for such columns or lines. Some percentages presented in the tables in this Report have also been rounded off and the sums in such tables may not be exactly equal to 100%. Percentage changes between comparable periods were calculated on the basis of the original amounts (not rounded off).

Consolidated statement of financial position of GPW Group by quarter in 2015 – 2017

 201720162015
PLN'000Q4Q3Q2Q1Q4Q3Q2Q1Q4
Non-current assets596,354594,774597,220597,334597,287584,694579,574577,028580,645
Property, plant and equipment110,784112,036113,777116,716119,130119,554121,539122,252125,229
Intangible assets267,991268,916271,380272,490273,815262,401258,057259,870261,728
Investment in associates207,389205,221201,590198,577197,231196,025191,412187,221188,570
Deferred tax assets3,8031,7963,3493,2611,8091,7493,0412,947-
Available-for-sale financial assets271280278278288288290285282
Non-current prepayments6,1166,5256,8466,0125,0144,6775,2354,4534,836
Current assets550,699513,493615,476592,548560,561524,879602,030583,701492,454
Inventories5654536057677371135
Corporate income tax receivable719571559428300234490369
Trade and other receivables64,09663,76889,069165,243113,262100,57999,96599,202131,557
Other current assets-------3-
Cash and cash equivalents486,476449,576526,283426,686446,814423,933501,758483,935360,393
Total assets1,147,0531,108,2671,212,6961,189,8821,157,8481,109,5731,181,6041,160,7291,073,099
Equity811,481771,612724,591772,849745,252712,325672,818738,734713,192
Share capital63,86563,86563,86563,86563,86563,86563,86563,86563,865
Other reserves1,3471,1281,1061,0351,1841,5371,5601,4811,455
Retained earnings745,696706,058659,085707,399679,678646,411606,896672,835647,326
Non-controlling interests573561535550525512497553546
Non-current liabilities259,951260,449258,780258,516143,422137,504137,632134,571258,930
Liabilities under bond issue243,573243,475243,378243,281123,459123,733123,669123,606243,800
Employee benefits payable1,4541,4681,8382,2741,8322,2544,6864,4004,046
Finance lease liabilities---173248587284
Accruals and deferred income5,5925,9966,0646,1326,200----
Deferred income tax liability7,1087,2865,2764,5889,6759,2456,9956,49311,000
Other liabilities2,2242,2242,2242,2242,2242,2242,224--
Current liabilities75,62176,206229,325158,517269,174259,744371,154287,424100,977
Liabilities under bond issue1,9382,1001,8962,069122,882123,002121,047122,881682
Trade payables *21,3036,1693,4966,1996,3872,8416,2886,1828,597
Employee benefits payable12,95810,5158,0605,8128,1148,87210,3797,2469,457
Finance lease liabilities314864626261555555
Corporate income tax payable6,0124,5877,59713,18816,15411,91110,9209,0582,833
Credits and loans-20,02159,95859,798-----
Accruals and deferred income *7,38615,64137,19441,7227,14411,63031,02138,9667,263
Provisions for other liabilities and charges210191318317333179649649621
Other current liabilities25,78316,934110,74229,350108,098101,248190,795102,38771,469
Total equity and liabilities1,147,0531,108,2671,212,6961,189,8821,157,8481,109,5731,181,6041,160,7291,073,099

* As at 31 December 2017 accruals are presented under trade payables

Source: Consolidated Financial Statements, Company