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Bourse after-tax profit more than doubles

The Budapest Stock Exchange (BÉT) had after-tax profit of HUF 176.3 million in 2017, more than double the HUF 72.9 mln one year earlier, shows a report approved by shareholders at Wednesdayʼs AGM. EBITDA rose to HUF 465.9 mln, from HUF 382.8 mln a year earlier.

The BÉT will not pay a dividend on last yearʼs profit, similarly to the previous year, according to state news wire MTI. Profit will be placed into profit reserves in order to continue the bourseʼs market development strategy. 

Total stock market capitalization grew to 22% of GDP by the end of 2017, BÉT Chairman-CEO Richárd Végh said at the AGM.  He added that the capitalization of shares listed on the bourse rose by 23.5% from a year earlier to HUF 8,169 billion in 2017.

Market concentration decreased, with the share of the four blue chips (MOL, OTP Bank, Richter, Magyar Telekom) within total turnover falling from 98% to 87%.

Végh noted that the BUX index rose 34% in 2016 and a further 23% in 2017. The BÉT spent HUF 175 mln on IT developments last year, he added.

The bourse chief noted that the largest IPO of the past two decades, the offering of logistics firm Wabererʼs shares to a total value of HUF 15.5 bln, took place in summer 2017.