The result of the core activity is almost RON560 thousand in Q1/2023 from RON1.1 million in Q1/2022, and the result of the investment activity is +RON1.65 million in Q1/2023 from a loss of RON3.93 million in Q1/2022.
Total revenues of the core business, amounting to RON4.9 million are 17% lower compared to RON5.76 million in the first quarter of 2022, At the level of the intermediation segment, the company reported a 30% decrease in intermediation revenues (from RON5.76 million in Q1/2022 to RON4.8 million in Q1/2023) on the back of decreasing intermediated volumes, in line with the evolution of the market turnover, with BRK’s market share remaining constant, around 6.5% – 7%, above the organic target set at 5%, the report reads.
In the first quarter of 2023, the company had total revenues of RON2.4 million from market making activity, the same amount as in the first quarter of 2022, and at the sub-segment level the company has divergent developments.
“We report a 50% increase in revenues from market making services provided to issuers (from 1.1 million lei in Q1-2022, to 1.7 million lei in Q1-2023) on the back of revenues generated by newly concluded contracts in 2022, and in terms of revenues from transactions with structured products, we report a decrease of 43% (from 1.29 million in Q1-2022, to 731 thousand lei in Q1-2023), amid a decrease in investor appetite for these products (the turnover in Q1-2022 was 246 million lei, and in Q1-2023 was 123 million lei). Against this decrease, we also add the fact that the market share remained constant (40%), but also the fact that the revenues from transactions with structured products recorded in Q1-2022 were an all-time high, as investor appetite for these products was higher in the context of volatility induced by geopolitical tensions in Ukraine. In comparison, the amount reported in Q1-2023 (731 thousand lei) is above the average of the last three quarters (average Q2-Q4 2022 = 695 thousand lei)”, BRK representatives said in the report.
BRK shares have lost 38% over the last 12 months, amid deals worth RON22.5 million, but have gained 9.1% so far in 2023, amid deals worth RON3 million. The company is valued at RON41.3 million.