The companies in the basket of Bucharest Exchange blue chips index BET have achieved 45% y/y stronger aggregated net profit in Q3, but this was achieved amid diverging dynamics of different sectors and significant impact of one-off earnings obtained by Banca Transilvania and telecommunications group Digi, according to an analysis of InterCapital Asset management analyst Divo Pulitika and published by Economica.net.

Excluding the one-off gains of Digi and Banca Transilvania, the adjusted rise in BET companies' aggregated profit declined by 20% in Q3 2024 compared to Q3 2023, according to the analyst – who also notes that one quarter's dynamics may be misleading, especially given the volatile nature of industries such as banking and energy.

Looking at the results for the first nine months of the year, the gap between reported and the figures adjusted for one-off events narrows, with a 25% increase in reported profit for the BET companies (including one-off earnings) and a 3% increase on an adjusted basis (excluding earnings unique).

Despite recent fluctuations, the BET Index continues to offer an attractive valuation, the analyst concludes, pointing to the profit-to-earnings (PE) ratio. The latest data shows that the index's normalised annualised return fell 5%, which led to a slight increase in the P/E ratio from 9.0x to 9.4x.

At the level of the best-performing companies in the first nine months of 2024, Digi Communications is the leader, with an 887% increase in net profit, reaching RON 1.8 billion, followed by Transgaz, whose net profit increased by 282%, up to RON 146.6 million, MedLife, with an increase of 253% to RON 25.1 million profit, Sphera Franchise Group, with a rise of 115%, up to a RON 70.4 million profit, and Transelectrica, with an increase of 99% up to RON 410.4 million profit.

iulian@romania-insider.com

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