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Higher business volume in Poland lifts Duna House profit

First-quarter after-tax profit of listed Hungarian real estate broker Duna House increased 60% year-on-year to HUF 265 million, supported by higher volume at its businesses in Poland, state news wire MTI reports, citing an earnings report released by the company.

Net sales revenue climbed 34% to HUF 2.46 billion.

Operating profit increased 26% to HUF 306 mln.

Earnings per share came to HUF 73 for the period.

Duna House noted that commissions volume in Hungary fell 15% to HUF 1.89 bln, while commissions volume in Poland rose 36pc to HUF 509 mln, and said its steadily developing activity in Poland was the "primary engine" of growth for the group in Q1.

In the loan intermediation segment, disbursed loan volume rose 65% to HUF 20.7 bln in Hungary and jumped 93% to HUF 48.8 bln in Poland, lifted by the acquisition of Polish loan broker Alex T Great in January 2020.

Duna House said its management expects that Q2 2020 will be hit hardest by the pandemic, noting a decline in real estate transactions of almost 70% in the first half of April, albeit followed by the start of a correction in the second half of the month.

"The management is optimistic that the economic crisis will strengthen the role of intermediaries in both the real estate and the loan markets, thereby strengthening the demand for the Groupʼs services in Hungary and in the region," Duna House said.