Broker Cluj (BRK) financial intermediation company posted net profit of RON 1.43 million (€380,000) in the first quarter of 2008, over five times lower year-on-year. The drop in profit comes after major capital market depreciations. “These results are due to unfavorable market conditions. We expect a market comeback in the second quarter,” said Broker Cluj President, Petru Prunea.
The company’s gross profit amounted to RON 2.28 mln (€620,000) at the end of April, as all three stock exchange indexes were subject to major depreciations.
The company’s turnover reached RON 3.93 mln (€1.07 mln) in Q1, 9.38 lower year-on-year. BRK estimates a 42 percent drop in gross profit.
Since the beginning of 2008, slips experienced by the Bucharest Stock Exchange (BVB) indexes were between 21.16- 31.17 percent. BRK owns stock in smaller companies listed on BVB. By the end of April, the total value of shares owned exceeded RON 111 million (€30 mln), of which 80.15 percent are BVB-listed company shares.
BRK posted turnover worth RON 7.87 mln (€2.13 mln) in Q1, 41 percent lower year-on-year, while expenses increased 36 percent, to RON 6.28 mln (€1.7 mln).
