Hungary Trends – The week in business and finance

Budapest (MTI) – See below MTI’s main business and financial news from the previous week:

RICHTER Q4 PROFIT DOUBLES ON FINANCIAL GAIN

A big financial gain lifted Hungarian drugmaker Gedeon Richter’s fourth-quarter net income to 19.3 billion forints (EUR 63m), a little more than double the 9.5 billion forints in the same period a year earlier, an earnings report showed. Speaking after the release of the report, Richter CEO Erik Bogsch put revenue growth, in euros, up 3 percent this year, slowing from a 6.1 percent rise in 2016.

HUNGARIAN-IRANIAN ECONOMIC MIXED COMMITTEE HOLDS INAUGURAL MEETING

The Hungarian-Iranian economic mixed committee held its inaugural meeting in Budapest. Magyar Eximbank is opening an 85 million euro credit line to support partnerships between businesses in the two countries, Minister of Foreign Affairs and Trade Péter Szijjárto said after the meeting. An agreement was reached on the delivery of “several hundred” buses to Tehran by Hungary’s Ikarus Global, and negotiations with two big local councils on modernising their waste and water management systems using Hungarian technology progressed, he added.

MOL DOUBLES EXPLORATION PORTFOLIO IN HUNGARY

Hungarian oil and gas company MOL said it acquired six new licences in Hungary, doubling its exploration area in the country. The licences are for almost 4,200 square kilometres in the areas of Bazakerettye, Bucsa, Jaszarokszallas, Mezőtúr, Okány-West and Zala-West.

GEN GOVT RUNS EUR 400m SURPLUS IN JAN

Hungary’s cashflow-based general government balance, excluding local councils, showed a 123.4 billion forint (EUR 400m) surplus in January, the first reading of data released by the Economy Ministry showed. The 2017 budget act targets a full-year deficit of 1,166.4 billion forints.

GOVT PARTNERS WITH KNORR-BREMSE ON SUPPORT FOR LOCAL SUPPLIERS

Hungary’s government is teaming up with Knorr-Bremse to boost the number of local suppliers to the German brake maker’s Hungarian business. Under the programme, Knorr-Bremse will supply Hungarian SMEs with know-how and technology, free of charge, while the government finances the cost of equipment and training necessary to boost the business these companies do with Knorr-Bremse, said state secretary Istvan Lepsenyi.

KBC BOOKS Q4 NET INCOME OF EUR 23 M IN HUNGARY

Belgium’s KBC Group booked net income of 23 million euros at its business in Hungary in the fourth quarter, down from 42 million euros in the same period a year earlier as income tax expenses jumped, an earnings report showed. The business’s pre-tax profit edged down 2 percent to 45 million euros, but income tax expenses climbed to 21 million euros from 4 million euros, biting into the bottom line. Net interest income dropped 3 percent to 59 million euros and net revenue from commissions and fees was down 5 percent at 40 million euros.

GOVT DECIDES TO SCALE BACK FOSTERED WORK PROGRAMME

Hungary’s government has decided to downsize the country’s fostered work programme over the next five years, gradually reducing the number of participants from an average 216,000 to 100,000, Janos Lazar, the government office chief, said at a regular press briefing. The government is allocating 40 billion forints (EUR 130m) to support the placement of fostered workers in private sector jobs, he said.

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SKANSKA TO BUILD EUR 65.2 M OFFICE BUILDING IN BUDAPEST

The Hungarian unit of Swedish property developer Skanska will build a 65.2 million euro office building in the capital, Skanska Magyarorszag said. The eight-storey Mill Park building will have 36,000 square metres of rentable space. It will be built in two phases, to be inaugurated in Q2 and Q3 of 2018.

ALFÖLDI TEJ BUILDING EUR 39m DAIRY

Hungary’s Alföalapldi Tej said it is building a 12 billion forint (EUR 39m) dairy in Debrecen (E Hungary). The dairy will add 10 billion forints to the company’s annual revenue and create 181 jobs.

FUTUREAL GROUP INAUGURATES SKYPARK OFFICE BUILDING

Hungarian property developer Futureal inaugurated the 25,000 square metre home of the Nokia Networks Global Technological Centre. Nokia Skypark is located on the Corvin Promenade, Budapest’s biggest rehabilitation project.

Photo: MTI

Source: MTI