Duna House earnings drop 40% in 2019

Sustainability

Listed real estate broker Duna Houseʼs consolidated after-tax profit fell 40% to HUF 1 billion last year, an earnings report released late Tuesday shows, state news wire MTI reports.

Net sales revenue edged down 1% to HUF 7.9 bln. At the same time, cost of services purchased jumped 29% to HUF 5.7 bln and payroll costs climbed 20% to HUF 800 million.

Duna House acknowledged that it finished the year in the lower third of its HUF 1.1 bln-1.4 bln guidance range, excluding its MyCity real estate development business.

"The performance of the core activities was slightly below the management expectations due to the downturn in the Hungarian real estate market. The ongoing real estate developments have been postponed to 2020 due to...general scarce capacities in the industry," Duna House said.

In guidance for 2020, the management put consolidated after-tax profit at HUF 2.4 bln-2.7 bln, or HUF 1.15 bln-1.35 bln excluding the MyCity business.

The management sees "stagnation" in Duna Houseʼs core Hungarian activities, auguring "a more mature real estate market", but "significant growth" in Poland, in terms of both volume and profit.

ADVERTISEMENT

Budapest Named 5th Best City in Europe for Bargain Lovers Analysis

Budapest Named 5th Best City in Europe for Bargain Lovers

Parl't approves 2023 budget Parliament

Parl't approves 2023 budget

Danubius Hotels Appoints Group Director of Development Appointments

Danubius Hotels Appoints Group Director of Development

Muni Council Organizing Meeting to Improve Air Quality City

Muni Council Organizing Meeting to Improve Air Quality

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.