Giełda Papierów Wartościowych w Warszawie S.A.: Wstępne wyniki finansowe za III kwartał 2017 (2017-10-20)

Deviation of GPW Group financial results from market consensus in Q3 2017
Current Report No. 45/2017
Date: 20 October 2017
Topic: Deviation of GPW Group financial results from market consensus in Q3 2017
Legal Basis: Article 17 (1) of MAR – Inside information

Content:
The Warsaw Stock Exchange (“GPW” or “Company”) hereby announces, following a compilation of market expectations presented in research reports of brokers combined as a consensus as at 20 October 2017, that the consolidated financial results of the GPW Group (“GPW Group” or “Group”) in Q3 3017 will exceed the consensus. According to the estimates of GPW Group, the consolidated net profit is higher than the consensus.

In the preparation of the consolidated financial statements of the GPW Group for Q3 2017, it was decided to recognise the following events, which in aggregate have a significant impact on the Group’s quarterly results.

In connection with a VAT correction due to a modification of the terms of taxation on services provided by Polish Power Exchange (“TGE”) in 2011 – 2016:

• Pursuant to a decision of the Director of the Tax Administration Chamber cancelling the decision of the Head of the Second Mazovian Tax Office, the Second Mazovian Tax Office on 13 October 2017 refunded TGE, a 100% subsidiary of GPW, with PLN 3.8 million of interest on outstanding tax liabilities, accrued by the tax authority following the correction of VAT payments due to the modification of the terms of taxation on services provided by in 2011 – 2016. This event will reduce the financial costs of the Group.

• Following the receipt of amounts due from TGE contractors under correction invoices of contractors issued for the VAT correction, it was decided in the preparation of the financial statements as at 30 September 2017 to release provisions of PLN 1.8 million, set up for uncollectible debt in this regard. This event will reduce other expenses of the Group.

In addition, similar to the GPW Group, it became apparent in the preparation of the financial statements of the Group that the fees paid by KDPW as costs of supervision of the capital market exercised by the Polish Financial Supervision Authority (“KNF”) in 2017, calculated on the basis of the rates and adjustment factors published by the Chairperson of the Polish Financial Supervision Authority in a communication of 30 August 2017, were lower than those covered by the relevant provisions. The difference between the originally expected amount of the fees due to KNF and the amount actually paid, attributable to the GPW Group, is PLN 1 million. This event will increase the share of profits of associates.

The net total of these amounts is PLN 6.6 million, which will have a one-off additional impact on the financial results of the GPW Group in Q3 2017.

Another one-off event in Q3 2017 which impacted the financial results of the GPW Group was the release of provisions at ca. PLN 5.8 million due to a lower annual fee paid by the GPW Group as costs of supervision of the capital market, as announced by the Company in Current Report No. 40 of 18 September 2017.


The financial statements of the Group are currently being audited; hence, the results of the GPW Group are not definitive and are subject to change. The GPW Group’s quarterly report for Q3 2017 will be published on 30 October 2017.

Legal basis:
Article 17 (1) of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/82/EC (EU Legal Journal L 173) (“MAR”).