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The Business Week in Romania 04.06.- 08.06.2018

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MACRO

·     The ROBOR index over 3 months reached a new record

Last week, the three-months ROBOR index reached a new peak, rising to 2.89% - the highest level recorded in the past three and a half years (a higher figure being previously recorded on October 13, 2014), according to the National Bank of Romania. The six-months ROBOR index increased as well, reaching the 3% threshold.

·     The Romanian economy is the only one that stagnated in the EU in Q1

Romania is the only member state of the European Union whose economy stagnated in the first quarter of this year (compared to the same period of the previous year), according to Eurostat. On average, in the European Union as well as in the euro area, the Gross Domestic Product recorded an advance of approximately 0.4%.

·     Value of trades in shares rises in June

According to data published by the Bucharest Stock Exchange, the value of trades on the main segment of the Romanian capital market increased by 9.2% in the previous week – 12,290 transactions were realized through 114.86 million shares, reaching a value of 229,037 million Lei.

·     Net investments in the Romanian economy increase in Q1

According to the National Institute of Statistics (INS), net investments in the Romanian economy increased in the first quarter of this year, amounting to 15.79 billion Lei – by 14.3% more compared to the same period of the previous year. According to INS, net investments represent those expenditures for the creation of new fixed assets, for the development, modernization and reconstruction of the existing ones, as well as the value of the services related to the transfer of ownership over existing fixed assets and paid land from other units or from the population (notary fees, commissions, transportation costs, handling).

·     Romania attracted 1.2 billion dollars from foreign markets

According to the Ministry of Public Finance (MFP), Romania attracted 1.2 billion dollars from foreign markets through a 30-year bond issue at a yield of 5.2% per annum, and achieved, for the first time, an early redemption transaction of dollar bonds. According to the MFP, "the Ministry of Public Finance successfully successfully completed the first redemption operation and the partial exchange of a series of existing Eurobonds on June 7, 2018. The transaction took the form of an early redemption and a partial exchange of US $ 250 million maturing in 2022 with a maturity of 4 years and a 6.75% coupon. This was accompanied by a new 1.2 billion dollars Eurobond issue, with a maturity of 30 years, and a coupon of 5,125%".

·     Over 58,000 buildings sold in Romania in May

According to the National Agency for Cadastre and Real Estate Advertising (ANCPI), in May, 58,794 real estate properties were sold in Romania, with most sales being in the capital. ANCPI said that "the number of houses, land and apartments that were the subject of sale-purchase contracts nationwide in the fifth month of this year is 3,064 lower than in May 2017. Most sales of real estate were recorded in May 2018 in Bucharest - 7.833, Timiș - 3.497 and Cluj - 3.454. The counties with the fewest real estate sold during the same period are Covasna - 428, Sălaj - 373 and Gorj - 368".

·     Romania, lowest number of part-time jobs in the EU

According to data published by Eurostat on Friday, Romania is ranked last in terms of the share of part-time jobs among Member States – 6.8% of the employed persons aged 15-64 occupy such positions. The average share of part-time jobs in the European Union is 19.4%.

 

Sources: Agerpres, Ziarul Financiar
 

BUSINESS

·     Allianz-Ţiriac maintains its position as leader of the insurance market

The local representative of insurance company Allianz retained its position as the leader of the Romanian market, being the most profitable company in the field in 2017 – the company reported a net profit of 161.2 million Lei for the previous year, 68 % versus 2016, according to data provided to the Ministry of Finance.

·     Microsoft Romania, a business of over 300 million Lei in 2017

The Microsoft software company ended the previous year with a turnover of 321.3 million Lei on the local market – up 15.7% compared to 2016. Thus, the company has doubled the business in the last 5 years, the turnover reported in 2017 being more than twice as high as reported in 2012.

·     Mobexpert, an investment of 7 million Euro in a new showroom

Mobexpert is set to open a new showroom in Constanța, following a total investment of 7 million Euro. "In Constanța we are about to open this year, in September-October, one of the most beautiful shops, with an area of 10,000 meters. The investment amounts to 7 million Euro. Normally, every year we should open a new store. It's a matter of opportunity", said entrepreneur Dan Şucu. Mobexpert's network of stores currently has 14 units, and brings in sales revenues of over 433 million Lei (according to figures reported for 2017); the largest sales were reported in the locations set in Bucharest (Băneasa and Pipera).

·     Fair Value, up nearly 50% in 2017

SAP's local software developer, Fair Value, reported a turnover of 11.2 million Lei (equivalent to 2.45 million Euro) for 2017, a 47.2% increase over the previous year. The net profit of the company climbed as well, but more significantly – by 210.8%, reaching a value of 0.93 million Lei (the equivalent of 0.2 million Euro).

·     Zitec profit decreases by more than 60%

Zitec, the local mobile application developer, whose shareholder is Emag (with a 25% stake), posted a profit of 0.48 million Lei last year – 69.4% lower than last year, and a turnover of 20.7 million Lei. As a result, the company's profit margin fell to 2.3% of its turnover.

·     Lianoning Qianfeng to invest 50 million Euro in Prahova county

Chinese company Lianoning Qianfeng New Energy Automobile announced that it will invest 50 million Euro in the construction of a 100% electric bus factory in Băicoi, in Prahova county. "We have seen locations in 20 countries before making the decision to invest in Romania. We have found very well-trained workforce and an investment environment proper for business development", said Frank Xu, president of the company. The investment will generate about 250 jobs.

·     Gadagroup business continues to fall

Medical equipment distributor Gadagroup’s business continued to decline in 2017, when the company reported a turnover of 80.8 million Lei – 10% lower than the one reported in the previous year, and a profit of 8, 6 million Lei – 36% lower than the one reported in the previous year.

·     Vivo Malls report losses in 2017

According to data centralized by the Ministry of Finance, although the four Vivo! Shopping centers owned by the Immofinanz real estate company, achieved a turnover of 171.3 million Lei in 2017 (8% more than 2016), the losses amounted to 56.4 million Lei – a significant difference compared to the previous year when the Vivo brand! reported a profit of approximately 200 million Lei.

Sources: Ziarul Financiar, Profit.ro

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