THE TEL-AVIV STOCK EXCHANGE REPORTS THE RESULTS OF THE FINANCIAL STATEMENTS FOR THE FIRST QUARTER OF 2022

TASE Concludes the First Quarter with a 25% Increase in Revenues and 50% in the Profit and EBITDA Compared to the Corresponding Quarter Last Year

TASE to Initiate the First Stage of the Buyback in an Amount of up to NIS 36 Million Over Six Months

• Revenues in the first quarter of 2022 totaled NIS 98 million, a 25% increase compared to the revenues in the corresponding quarter last year.
• The profit in the first quarter of 2022 totaled NIS 15 million, compared to NIS 10 million in the corresponding quarter last year, an increase of 50% between the quarters.
• The adjusted EBITDA in the first quarter of the year totaled NIS 37 million, compared to NIS 25 million in the corresponding quarter last year, an increase of 50% between the quarters.
• Equity trading volumes grew by close to 40% in the first quarter of the year compared to the corresponding period last year; capital raising on the equity market totaled NIS 7.5 billion, representing 30% of the total capital raised in the full year 2021.

TEL AVIV, Israel, May 24, 2022 /PRNewswire/ -- Ittai Ben Zeev, CEO of TASE, said today: "We are opening the first quarter with strong results and record revenues that reflect the ongoing development and growth in all the core activities of TASE. Especially in times like these, TASE continues to serve as a significant capital raising hub for the local companies, with a total of NIS 7.5 billion raised on the equity market, including in 8 IPOs, standing strong in the face of significant fluctuations and price drops in most of the leading international markets.

"TASE, as home of the Israeli economy, serves as terra firma for the Israeli companies, including dozens of dual-listed companies, that enjoy the economic strength that characterizes the Israeli economy and investors and the greater stability compared to the international markets. At the same time, we continued our efforts to increase the number of players in the local capital market, with emphasis on global players that expand the variety of products traded on TASE and enhance the competition while also increasing the exposure of the Israeli companies to global investors. TASE will continue to develop new products and services, for the benefit of the capital market, the investors and the Israeli economy."

The Tel-Aviv Stock Exchange Ltd. (TASE: TASE) today announced its financial results for the first quarter ended March 31, 2022.

The first quarter of the year was characterized by strong fluctuations and uncertainty in the markets, which boosted the trading volumes to 38% above the average trading volume of equity in the full year 2021, this on the backdrop of the hostilities against Ukraine, the looming inflation and the interest rises that began in the United States, Europe and in Israel. These were accompanied by a moderate reduction in the number of new IPOs, similarly to the global trend, with 8 IPOs in the first quarter of the year. At the same time, capital raising on the equity market was strong, totaling NIS 7.5 billion, representing close to 30% of the total capital raised in the full year 2021, including NIS 1.4 billion raised in 8 IPOs, 3 with a market cap of more than NIS 1 billion. Capital raised from the public on the bonds market was also substantial, totaling NIS 24 billion, close to 31% of the total capital raised in 2021.

TASE's leading indices, the TA-35 Index and the TA-90 Index, remained strong compared to the flagship indices of leading global exchanges. In the first quarter, they recorded an average positive yield of 2%, compared to a 5% decrease in the Dow Jones and S&P 500 indices, a 9% decrease in the EURO STOXX 50 index and a 6% decrease in the MSCI index.

In the first quarter, foreign money continued to flow strong into TASE, totaling NIS 3 billion net in shares, this further to net purchases of NIS 13 billion net in 2021.

TASE constantly works to increase the number of players in the local capital market and the number of TASE members, in order to enhance the competition on the capital market and improve the position of the local investor. Among others, in the first quarter more foreign ETFs listed on TASE - international investment firm, Invesco, listed for the first time 10 foreign ETFs, joining the already listed foreign ETFs of global funds, Blackrock and Lyxor. There are currently 39 foreign ETFs listed on TASE.

In the first quarter, TASE continued to remove trading barriers, increase the public's involvement and improve the accessibility of information to the public. The reduction of the minimum order size in trading to NIS 500 in early March was followed by a surge in the number of new orders for shares included in the TA-35 Index, which grew 7 times larger - from 10,000 daily orders to 71,000 daily orders. At the same time, in the first quarter, TASE launched the English TASE app.

Further to TASE's announcement, last March, of its intension to formulate a plan for the buyback of the Company shares in an amount of up to NIS 100 million and for a period of up to two years, today the TASE Board of Directors approved the first buyback plan, in an amount of up to NIS 36 million over six months. Accordingly, the approved plan, contains restrictions on the daily volume of purchases and the buying prices, which shall apply to purchases carried out pursuant to it. The buyback will be executed by an external broker that is not related to the company.

Highlights of the results for the first quarter of 2022:

Revenue in the first quarter of 2022 totaled NIS 97.7 million, compared to revenue of NIS 78.4 million in the corresponding quarter last year, an increase of 25%. Growth was recorded across all activity items, including a 16% increase in revenue from trading and clearing commissions, which totaled NIS 39.4 million, stemming mainly from the higher trading volumes in equity compared to the corresponding quarter last year, as well as from the 2 additional trading days this quarter. Another increase of 51% was recorded in revenue from listing fees and levies, which totaled NIS 24.8 million, due, among others, to the updating of the period of recognition of revenue from listing fees and another 15% rise in revenue from Clearing House services, which totaled NIS 17.4 million.

Costs in the first quarter of 2022 totaled NIS 73.4 million, compared to costs of NIS 65.7 million in the corresponding quarter last year, an increase of 12%. The increase in the costs is due mainly to the rise in marketing expenses in the reported period as a result of the timing of performance of campaigns and to an increase in employee benefits expenses resulting from salary updates and provisions for bonuses.

Net financing expenses in the first quarter of 2022 totaled NIS 5.2 million, as compared to net financing income of NIS 0.1 million in the corresponding quarter last year. The transition to financing expenses this quarter resulted from a negative return of 2.45% on the Company's investments in marketable securities' portfolios comprising Israeli Government bonds, as compared to a positive return of approximately 0.02% in the corresponding quarter last year.

The profit in the first quarter of 2022 totaled NIS 14.7 million, compared to NIS 9.7 million in the corresponding quarter last year, an increase of 52%. The increase in profit was due to a rise in revenue, which was partly offset by the increase in expenses and the transition to financing expenses.

The adjusted EBITDA in the first quarter of 2022 totaled NIS 36.8 million, compared to NIS 24.6 million in the corresponding quarter last year, an increase of 50%. The increase is due to a 25% rise in revenue as a result of the higher volume of activity and update to the period of revenue recognition from listing fees, less a 12% increase in expenses, primarily marketing costs and employee benefits.

The adjusted profit in the first quarter of 2022 totaled NIS 14.9 million, compared to NIS 9.9 million in the corresponding quarter last year, an increase of 50%. The increase is due to a 25% rise in revenue as a result of the higher volume of activity and update to the period revenue recognition from listing fees, less a 12% increase in expenses, primarily marketing costs and employee benefits, and to a transition to financing expenses as a result of a negative return on the Company's investments in financial assets held for trade.

TASE's equity as of March 31, 2022 totaled NIS 669.5 million, a 1% increase compared to December 31, 2021.

Click here for the link to the full financial statements for the first quarter of 2022:

Click here for the link to the financial presentation of the first quarter of 2022:

This notification does not replace the stated in the periodic financial statements of the Company for the first quarter of 2022, which contain the full and accurate information.

Contact:
Yehuda van der Walde EVP, CFO
+972-76-8160442
[email protected]

Orna Goren
Head of Communication and Public Relations Unit 
+972-76-8160405
[email protected]

SOURCE The Tel Aviv Stock Exchange Ltd.