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Duna House earnings drop 40% in 2019

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.