Share of profit of associates

The Group’s share of profit of associates amounted to PLN 9.2 million in 2012, a decrease of 40.3% compared to PLN 15.5 million in 2011. The lower profit was driven mainly by the net profit of the National Depository for Securities (KDPW) Group, which was PLN 24.6 million in 2012 compared to PLN 47.4 million in 2011.

The profit of KDPW decreased year on year basis driven mainly by less favourable market conditions, which reduced revenues from fees charged for clearing and settlement of transactions, regulatory amendments which reduced revenues from pension fund member transfer services, as well as an impairment write-down of goodwill of poee at PLN 4.2 million (since WSE holds 33.33% of KDPW, the write-down reduced its share in profits of associates by PLN 1.4 million, according to IFRS). 

The net profit of Centrum Giełdowe was PLN 4.2 million in 2012 compared to a net loss of PLN 1.3 million in 2011. The significant volatility of the profit of Centrum Giełdowe year on year results mainly from fx differences and derives from the payment amounts and dates of the company’s US$ denominated loan.

Profit / (Loss) of associates
  For the three-month period ended Year ended December 31,
PLN'000 December 31,
2012
September
30, 2012
December 31,
2011
2012 2011
KDPW Group 2,229 4,691 6,644 24,613 47,401
Centrum Giełdowe S.A. 694 1,815 (877) 4,191 (1,333)
INNEX PJSC * - - 238 - (65)
Total 2,923 6,506 6,005 28,804 46,003
Source: Consolidated Financial Statements, Company * the carrying value of PSJC Innex in the statement of financial position of WSE Group is nil; in August 2012 capital increase of PJSC Innex was conducted, WSE didn't decide to participate in the process. As a result WSE stake in Innex shares was dilluted. Innex ceased to be an associate of WSE Group.
WSE's share of profit / (loss) of associates
PLN'000 December 31,
2012
September
30, 2012
December 31,
2011
2012 2011
  For the three-month period ended Year ended December 31,
KDPW Group 743 1,563 2,215 8,204 15,8
Centrum Giełdowe S.A. 172 450 (217) 1,039 (330)
INNEX PJSC * - - - - -
Total 915 2,013 1,998 9,243 15,47
Source: Consolidated Financial Statements, Company * the carrying value of PSJC Innex in the statement of financial position of WSE Group is nil; in August 2012 capital increase of PJSC Innex was conducted, WSE didn't decide to participate in the process. As a result WSE stake in Innex shares was dilluted. Innex ceased to be an associate of WSE Group.

The quarterly share in profit of associates decreased in Q4 2012 both compared to Q3 2012 and Q4 2011. The main driver was the lower net profit of the KDPW Group resulting from a decrease in revenues and from an impairment write-down of goodwill of poee.

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