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Duna House profit slips 21% in 2017

Listed real estate broker Duna Houseʼs after-tax profit fell 21% to HUF 918 million last year, an earnings report released late Wednesday shows. Net sales revenue edged down 2% to HUF 4.68 billion. Costs of services purchased jumped 117% to HUF 3.67 bln.

Duna House attributed the marked increase in costs of services to construction costs of developments for MyCity, a joint venture in which Duna House bought out its partner in the spring. Duna House booked costs of HUF 1.48 bln related to MyCity projects in the capital, most of which has been activated as inventory, the firm said.

Inventories rose to HUF 3.40 bln at the end of last year, from just HUF 12 mln twelve months earlier, Duna Houseʼs balance sheet shows.   

Duna House said its board would propose payment of a minimum HUF 176 per-share dividend on 2017 profits.

In a separate disclosure on guidance, Duna House forecast its 2018 after-tax profit at HUF 2.7-2.9 bln.

In its annual property market forecast published Wednesday, Duna House said home sales in Hungary came to 12,869 in February, up 13.7% from the same month a year earlier, based on estimates.

Duna House said the combined 23,787 sales figure for the first two months of 2018 shows the strongest start to the year since the 2008 crisis. Duna House predicted a 10-20% increase in transaction numbers and 160,000-180,000 home sales in Hungary in 2018.