Money Buzz! Europa

Category: Warsaw

  • Expenditures of Polish residents related to trips at PLN 79.5 billion in 2019

    Expenditures of Polish residents related to trips at PLN 79.5 billion in 2019

    The number of Polish residents aged 15 years or over who participated in 2019 in at least one private tourist trip amounted to 20.8 million (3.6% more than in 2018), which made 64.1% of Polish residents in this age group.

    In 2019, the number of tourist trips made by members of household amounted to 41.4 million (3.2% more than in 2018), which means that one household participated on average in 3 trips.

    On average, 2 persons participated in one trip.

    The majority of trips (96.1%) was made for private purposes.

    During the year Polish residents made a total of 75.1 million trips (one person could have made several trips) – 4.2% more than in 2018.

    Domestic trips predominated definitely – there were 59.8 million of such trips, which included short trips (2–4 days) – 34.5 million and trips of 5 days or longer – 25.3 million.

    The number of outbound trips of Polish residents amounted to 15.3 million and most of these trips (12.4 million) were trips of 5 days or longer.

    Over 50m domestic trips

    The number of domestic trips amounted to 50.0 million and outbound trips – 13.5 million.

    Among domestic trips, 60.0% were short-term trips, while long-term trips accounted for 80.2% of outbound trips.

    Expenditures of Polish residents related to trips at PLN 79.5 billion

    In 2019, expenditures of Polish residents related to trips amounted to PLN 79.5 billion (9.7% more than in 2018), of which PLN 30.9 billion (11.5% more than in 2018) were spent on domestic trips with overnith stays, PLN 34.3 billion (9.2% more than in 2018) on outbound trips with overnight stays, and PLN 14.4 billion on outbound same-day visits (7.0% more than in 2018).

    The average expenditure per person on a domestic trip of 2–4 days amounted to PLN 352, on a trip of 5 days or longer – PLN 1012, and on an outbound trip PLN 1708 and PLN 2737 respectively.

    On average, one person spent PLN 388 for one outbound trip without an overnight stay.

  • Skanska signs in Warsaw the biggest lease ever in the company’s history

    Skanska signs in Warsaw the biggest lease ever in the company’s history

    Skanska has signed a 10 year lease with the insurance company PZU Group for 47.000 square meters office space and in addition 325 parking lots in the skyscraper office building, phase III of Generation Park in Warsaw, Poland.

    The tenant will start to take occupancy in the second quarter 2022. With this lease the building is now 98.5% occupied. This is the largest office lease agreement in terms of square meters in Skanska’s history.

    Generation Park will comprise of three office buildings with total leasable area of around 87.000 square meters of offices and retail space.

    Generation Park will be Skanska’s largest office development project in Warsaw and include the company’s first office skyscraper in CEE.

    Construction of Generation Park Y, phase III of the complex, started in November 2018. Shell and core completion are expected in the first quarter of 2021.

    The fit out works for the tenant will commence and be completed in Q2 2022, which is also the date for moving in.

    Skanska is an active player in CEE

    Outside the Nordics, the company has operations in building construction and civil engineering in Poland, Czech Republic, Slovakia and the UK.

    Skanska develops commercial properties in selected home markets in Poland, Czech Republic, Romania and Hungary.

    Residential development is active in Poland, Czech Republic and in the UK with the BoKlok concept.

    In 2019, Skanska had sales of SEK 33 billion and about 11.700 employees in its European operations outside the Nordics.

  • PGE Group launched two new wind farms, Starza/Rybice and Karnice II

    PGE Group launched two new wind farms, Starza/Rybice and Karnice II

    The investment project in the north-western part of the West Pomeranian Voivodeship, Poland, comprises 43 turbines with a total installed capacity of nearly 100 MW.

    The project has increased the total installed capacity of PGE’s wind farms by 20 percent to near 647 MW and strengthened the group’s position as the Poland’s largest manufacturer of green energy.

    Within the framework of the project implemented in the area of Kamień Pomorski and Gryfice Poviats, 33 wind turbines with a nominal capacity of 2 MW and 10 wind turbines with a capacity of 2.2 MW were built together with the accompanying infrastructure and a grid connection in the form of two substations.

    For the foundations of all the wind turbines, 16,340 m³ of concrete (more than 1,800 courses of concrete trucks) and 2,120 tons of reinforcing steel (more than 8 Boeing 787 Dreamliner passenger aircraft) were used.

    The turbines, each weighing about 260 tons, were mounted on 110 and 125 meter towers respectively. Their blades made of laminate (glass fibre/resin mixture) are 100 or 110 metres long in diameter.

  • Retail sales in Poland, 7.7% lower than the year before

    Retail sales in Poland, 7.7% lower than the year before

    In May 2020 retail sales at constant prices were by 7.7% lower than the year before (against a growth of 5.6% in May 2019).

    Compared with April 2020 retail sales increased by 14.9%.

    In the period of January-May 2020 retail sales were by 6.2% lower (against a growth of 6.5% in 2019).

    In May this year compared with the previous month, a drop in retail sales value via internet was recorded (by 12.7%). The share of such sales (in current prices) decreased from 11.9% in April this year to 9.1% in May this year.

    A decline in the share of sales via Internet was reported by enterprises classified into the group “textiles, clothing, footwear“ (from 61.3% a month before to 26.8%) as well as by entities from groups “newspapers, books, other sale in specialized stores” (from 39.9% to 25.2% respectively) and “furniture, radio, TV and household appliances “ (from 28.6% to 15.6%).

  • LOT will resume regular international passenger flights from July 1

    LOT will resume regular international passenger flights from July 1

    LOT will resume, from July 1, its first regular international passenger flights since their suspension on March 13.

    The flight schedule for the first two weeks of July includes primarily flights to the Schengen countries and popular holiday destinations.

    The route network of 20 European cities includes:

    • seven flights a week to Prague, Duesseldorf, Vilnius and Budapest;
    • six flights a week to Berlin;
    • five flights a week to Vienna, Brussels and Kiev (Boryspil Airport);
    • four flights a week to Amsterdam and Bucharest;
    • three flights a week to Barcelona, Tbilisi and Oslo;
    • two flights a week to Split and Dubrovnik;
    • at least one flight per week to Zadar, Podgorica, Corfu, Chania and Varna.

    All international flights will be operated from Chopin Airport in Warsaw until July 14.

    In addition, two connections from Budapest will return to the resumed LOT network – to Varna and Dubrovnik, operated once a week during the weekend.

    LOT will also maintain its existing schedule of over 30 domestic flights a day.

  • Tesco agrees sale of business in Poland to Salling Group A/S

    Tesco agrees sale of business in Poland to Salling Group A/S

    Tesco announces the sale of its business in Poland to Salling Group A/S. The transaction, which is subject to antitrust approval, includes the sale of 301 stores together with the associated distribution centres and head office.

    Total enterprise value agreed for the transaction is PLN 900m (equivalent to £181m), with total net proceeds expected to be approximately PLN 819m (equivalent to £165m), settled in cash, with completion expected in the current financial year.

    Over the past 18 months, Tesco has either sold or agreed to sell 22 stores for net proceeds of c.£200m.

    The group will continue to seek to realise value from the remaining assets, which include 19 currently trading stores not covered in this transaction.

    Salling Group A/S serves 11 million customers every week across Germany, Poland and Denmark, with 50,000 colleagues and an annual turnover of approximately GBP 7bn.

    Tesco Polska generated sales exc. VAT and PFS of £1,368m and an operating loss before exceptional items of £(24)m in the 2019/20 financial year.

    All 301 stores included in the transaction will be rebranded during an 18-month transition period.

  • Carrefour opens a second BIO store in Warsaw, Poland

    Carrefour opens a second BIO store in Warsaw, Poland

    Carrefour Polska is developing the format of certified organic food stores. On June 16, just over half a year after Carrefour BIO’s debut on the Polish market, the chain opens another store in this concept.

    The new, expanded facility is located in Warsaw’s Bemowo at ul. Pełczyńskiego 5 and offers its clients approximately 2.600 products.

    In the Carrefour BIO store offer, almost 90% of the products are certified.

    There are also gluten-free, lactose-free, no added sugar, diet, vegan or vegetarian products.

    Thanks to the sales area of the store increased to 200 m2 at ul. Pełczyńskiego 5 in Warsaw

    Customers can also choose from 2.300 packed products, including 330 Carrefour BIO products, which is highly rated for excellent value for money.

  • Selvita raised over EUR 20 million in a follow-on public offer

    Selvita raised over EUR 20 million in a follow-on public offer

    • Selvita successfully allotted 2.38 million of C series shares, raising EUR 20.6 million from investors.
    • It is the second largest transaction in terms of capital raised, on the Warsaw Stock Exchange this year.

    As part of the Follow-On public offering of shares, investors could buy up to 2.38 million shares of the new C series, which constitutes about 15 percent of the current company’s share capital.

    The issue price of the shares was set at PLN 38,00. Selvita has achieved in full its intended goal regarding capital raise that was presented in the strategy published together with the announcement of the shareholders’ meeting.

    The capital raised will allow the company to execute the development strategy adopted for the upcoming years which assumes that in 2023 it will be able to achieve over EUR 70 million in revenues at a stable EBITDA margin and as a consequence reach a market cap of over EUR 230 million.

    The proceeds from the share issue will be used mostly on acquisitions of selected European CROs (app. 16 million EUR), and the reminder of the proceeds will be devoted to further organic growth of Selvita.

    Selvita, interested in acquisitions

    Selvita is interested in companies which will either complement the current offering, or will allow for the expansion of its scale of operations.

    In terms of the qualitative criteria for choosing the acquisition target, Selvita will favor entities supplementing their portfolio of services in the area of drug discovery or regulatory studies.

    By the end of 2023, the company intends to execute three acquisitions, with the first one taking place this year.

    Over the next three years, the Company plans to invest EUR 35-50 million in the acquisitions.

    Selvita Research Center to be finalized at the turn of 2022 and 2023

    As a key element supporting further organic growth, Selvita strategy includes establishment of the Selvita Research Center, with a research space of 4,000 m2.

    With the completion of the new Center, Selvita will have in aggregate 10,000 m2 of research space available.

    Initiation of the investment is planned for next year and expected to be finalized at the turn of 2022 and 2023.

  • PKN Orlen set to acquire a 65% stake in Ruch

    PKN Orlen set to acquire a 65% stake in Ruch

    ​PKN Orlen is set to acquire a 65% stake in Ruch and become the company’s majority shareholder, responsible for its development.

    The parties to the transaction have agreed on the terms and conditions of the deal in an investment agreement. PKN Orlen has also obtained clearance from the Office of Competition and Consumer Protection (UOKiK) to go ahead with the transaction.

    Alior Bank agreed to cancel Ruch’s debt of PLN 87.5m

    Under the investment agreement, PKN Orlen is to become the majority shareholder of Ruch, holding a 65% stake, with PZU, PZU Życie and Alior Bank as the other shareholders.

    Also, Alior Bank has agreed to cancel Ruch’s debt of PLN 87.5m. The transaction is contingent upon a final court decision confirming that the arrangements between Ruch and its creditors have been implemented as part of two accelerated arrangement procedures.

    PKN Orlen to open retail and food outlets in locations other than service stations

    In line with its strategy, PKN Orlen plans to open retail and food outlets in locations other than service stations, to serve as a platform for generating synergies with Ruch.

    Market research conducted by PKN Orlen has shown potential for rolling out its format in non-service-station locations using RUCH’s assets.

  • Poland’s aggressive rate cuts are amplifying profitability pressure for banks

    Poland’s aggressive rate cuts are amplifying profitability pressure for banks

    Moody’s has recently published a report concluding that the Poland’s aggressive rate cuts are amplifying profitability pressure for banks.

    On 28 May, the National Bank of Poland lowered its reference rate by 40 basis points, bringing the rate down 140 basis points cumulatively with three rate cuts since 17 March to a historic low of 0.10%.

    Easing monetary policy is part of the authorities’ policy response to soften the negative effect of the coronavirus crisis. The interest rate cuts will significantly reduce Polish banks’ net interest margins and add to potential profitability pressures amid lower business volume and rising credit costs.

    By lowering interest rates, the central bank aims to support household income and domestic business finances, which have suffered from the coronavirus health crisis. The rate cuts will help loan repayment and debt affordability. However, because Polish banks are primarily deposit-funded, they have limited ability to fully pass on the lower interest rates to their customers to reduce their funding costs. Therefore, the sector’s relatively good net interest margins will, like euro area peers, be significantly pressured.

    The country’s leading banks announced the lower rates’ sizeable effect on their income statement

    Bank Polska Kasa Opieki S.A (PEKAO, A2 stable, baa11), the country’s second-largest bank, said that it expects the new lower rate to reduce its net profit by PLN650-PLN700 million, shaving off around 45 basis points from its net interest margin of 2.80% as of year-end 2019. The reduction equates to approximately 23% of its 2019 pre-tax profit.

    Powszechna Kasa Oszczednosci Bank Polski S.A. (PKO BP, A2/A3 stable, baa2), the largest bank, said that it expects 2020 net profit to decline by PLN750-PLN800 million, which accounts for around 8% of 2019 net interest income and 14% of pre-tax profit. According to our estimates, this would reduce the bank’s net interest margin to around 2.90% from 3.16% at year-end 2019.

    Poland’s third largest bank, Santander Bank Polska S.A. (A2/A3 stable, baa2) said that it expects the rate cuts to shave PLN635-PLN700 million off its net interest income, or approximately 10% of 2019 net interest income. According to our estimate, keeping all else constant, the decline in net interest income would reduce the bank’s pre-tax profit by about 20% and its net interest margin to around 2.90% from 3.23% as of year-end 2019.

    The rate cuts add to the pressure on the banks’ profitability. All three banks reported a significant 20%-50% reduction in profit for the first quarter of 2020 because of significantly higher credit costs tied to the coronavirus pandemic and resulting recession.

  • 12.300 pharmacies were operating in Poland in 2019

    12.300 pharmacies were operating in Poland in 2019

    At the end of 2019, in Poland there were operating 12.3 thousand pharmacies (generally available and dispensaries) and 1.2 thousand pharmaceutical outlets in which 59.5 thousand pharmacists and pharmaceutical technicians were employed, latest Statistics Poland data shows.

    The night duties were fulfilled permanently by 2.9% pharmacies, where of temporarily by 20.8% pharmacies.

    The sales of medical products by mail order using the website (via epharmacies) were declared by 284 pharmacies and 5 pharmaceutical outlets.

    In Poland, there were on average 2.848 persons per 1 generally available pharmacy and pharmaceutical outlet (by 132 more than in the previous year).

    The highest number of inhabitants per 1 generally available pharmacy and pharmaceutical outlet was recorded in Pomorskie Voivodship (3.311), while the lowest – in Wielkopolskie Voivodship (2.545).

  • BTC Studios has inked a strategic alliance with IDG Consulting

    BTC Studios has inked a strategic alliance with IDG Consulting

    BTC Studios, a Polish interactive games developer and publisher has inked a strategic alliance with IDG Consulting to strengthen and accelerate its growth in the children and family games segment.

    The partnership with IDG Consulting will fuel BTC Studios’ strategic initiative to acquire gaming licensing rights of children/family IPs with global awareness on TV, SVOD or AVOD.

    The first licensing deal, signed in 2019 with the international TV producer and distributor Cyber Group Studios, involved animated series IPs such as Taffy coproduced with Turner and broadcasted notably on Turner’s Boomerang and Sadie Sparks coproduced with Brown Bag Films and broadcasted notably on Disney Channel.

    A second deal with a global IP should be announced soon.

    BTC Studios is led by a serial entrepreneur with a successful track record in the technology and interactive games sectors. Moreover, the company has access to a strong talent pool located in Eastern Europe.

    IDG Consulting has been providing best-in-class market research, data analytics, strategic consulting and M&A services in the gaming industry (Mobile, PC, Console platforms). Their clients include the top gaming, e-sports, technology, media, retail and investment companies around the world.

    IDG Consulting is leading a consortium of investors attracted by BTC Studios’ strategy and the 10-fold growth delivered by the company over the last twelve months.

    Beyond the first funding of 5 Mil€, IDG Consulting will also play a key role in assisting BTC Studios implement their strategy and benefit from the strong growth of the SVOD/AVOD and gaming markets worldwide (37% CAGR).