TEL AVIV, Israel, May 26, 2020 /PRNewswire/ --
Ittai Ben-Zeev, CEO of the Tel Aviv Stock Exchange, says today: "We are concluding a first quarter of turmoil in the local and global markets brought about by the coronavirus outbreak, which was reflected in a significant increase in securities trading across the board. Even in these challenging times, all systems at TASE remained fully operational, providing prompt, efficient and impeccable service. This was achieved by TASE's creation of a safe work environment for its employees alongside the implementation of remote work procedures. This allowed us to provide the capital market, local and foreign investors, and the Bank of Israel and Israeli Government with the necessary infrastructure for the issuance of capital and debt, which are integral to the economic activity in Israel."
The Tel-Aviv Stock Exchange Ltd. (TASE: TASE) today announced its financial results for the first quarter ended March 31, 2020:
Highlights of the Results:
The revenue in the first quarter of 2020 totaled NIS 81.2 million, compared to NIS 64.6 million in the corresponding quarter last year – a 26% increase.
The revenue from trading and clearing rose by 49% due to the significant increase in trading volumes on TASE following the coronavirus outbreak. Revenue increased across the board, with the higher share trading volumes accounting for 24% of the increase in the revenue from trading and clearing. The revenue from trading and clearing was also boosted by the higher trading volumes of mutual funds (8%) and the increased trading in derivatives, corporate bonds and government bonds (6% each). It should be noted that the rate of effective commissions collected, other than in relation to derivatives, was lower in comparison to the corresponding quarter last year, this as a result of the increase in the volume of the transactions that are affected by the application of a maximum commission.
The revenue from listing fees and levies grew by 11% due to the 5% increase in revenue from listing fees and the 6% increase in annual levies from companies as a result of the joining of new companies and from adding new services.
The revenue from Clearing House services increased by 16%, primarily due to the intensified activities of Clearing House members on the backdrop of the coronavirus outbreak.
The revenue from data distribution and connectivity services remained unchanged - the decrease in data distribution activities that ensued from efficiency measures taken by data distributors was offset by an increase in revenue from private customers and in revenue from new connectivity services launched in 2019.
TASE's expenses in the first quarter of 2020 totaled NIS 63.6 million, an increase of 3% compared to expenses of NIS 61.7 million in the corresponding quarter last year. Most of the increase was due to a 8.5% rise in employee benefits, and was partly offset by the launching of marketing campaigns during the coronavirus crisis, which aired at the beginning of the second quarter and were partly paid for at the end of the first quarter ("Home of the Israeli Economy" campaign and "It's Our Business" campaign).
TASE's net profit in the first quarter of 2020 amounted to NIS 10.2 million, a 89% increase compared to a net profit of NIS 5.4 million in the corresponding quarter last year. The increase in net profit was due mainly to higher revenue from trading and clearing services, as above, which was partly offset by the transition to financing expenses of NIS 4.4 million in the quarter, compared to financing income in the corresponding quarter in 2019.
The adjusted net profit in the first quarter of 2020 totaled NIS 10.6 million, compared to an adjusted net profit of NIS 5.4 million in the corresponding quarter last year - a 96% increase. The increase was due mainly to higher revenue from services, and was partly offset, primarily by an increase in employee benefits costs and in financing expenses and taxes.
The adjusted EBITDA in the first quarter of 2020 totaled NIS 28.9 million, more than double the NIS 14.2 million recorded in the corresponding quarter last year. The increase is due to higher revenue from services, and was partly offset by an increase in employee benefits costs.
Cash flows from operating activities in the first quarter of 2020 amounted to NIS 46.6 million, a 88% increase compared to the corresponding quarter in 2019.
Equity - TASE recorded a 8% increase in the first quarter of the year compared to the corresponding quarter last year. Total equity amounts to NIS 608.5 million. TASE has surplus equity over regulatory requirements of NIS 289 million.
The drop in the prices of government bonds that are traded on TASE in the first quarter of 2020 resulted in a loss of approximately NIS 4.4 million in the securities portfolios of the Company, which was recorded under financing expenses in the Company's statement of profit or loss. It should be noted that this effect was abated by a moderate recovery in the prices of the government bonds after the reporting date, in the period from April 2020 until shortly before the approval date of the financial statements.
On April 16, 2020 (after the reporting date), TASE distributed its first-ever dividend to its shareholders in an amount of NIS 8.77 million. As previously reported, in the third quarter of 2019, TASE closed its offering on the Tel-Aviv Stock Exchange and has operated as a public company since August 1, 2019.
The Company will also host a conference call today at 8:00 PM (Israel time).
To participate, please call one of the following telephone numbers a few minutes before the start of the call (No passcode required):
Conference Call Dial-in Details (No passcode required):
US: 1-888-281-1167 (toll free)
Canada: 1-888-604-5839 (toll free)
UK: 0-800-917-5108 (toll free)
All other Locations: +972-3-9180644
This announcement is not a substitute for perusing the Company's periodic reports for the first quarter of 2020, in which full and precise information is presented.
Yehuda van der Walde
Head of Communication and Public Relations Unit
SOURCE The Tel Aviv Stock Exchange Ltd.