TASE records adjusted profit of close to NIS 26 million in the second quarter, compared to
NIS 20 million last
year
- Revenue in the second quarter of 2024 totals NIS 105.1
million, a 13% increase compared to NIS 92.9
million in the corresponding quarter last year
- Adjusted EBITDA in the second quarter of 2024
totaled NIS 45.8 million, compared to NIS 35.6 million in the corresponding quarter
last year, an increase of 29%
- Adjusted net profit in the second quarter of 2024
totaled NIS 25.7 million, compared to NIS 20.4 million in the corresponding quarter
last year, an increase of 26%
Ittai Ben Zeev, TASE CEO, said today: "TASE continues to
show resilience and support the Israeli economy against the
backdrop of the ongoing war. We continue to push forward with
technological innovation, implementing advanced infrastructure and
promoting collaborations in order to upgrade the market, remove
barriers and enhance its global accessibility. Now more than ever
we are resolved to continue developing the capital market, as part
of our unwavering commitment to the Israeli economy, which is
pivotal to our national strength.
As part of these efforts, we recently published, in cooperation
with the Israel Securities Authority and the Bank of Israel, a call for public comments on the
proposal to align the TASE trading week with the global standard; a
strong positive response was received in favor of changing to a
Monday-through-Friday trading week. We are confident that this
strategic move that will make TASE more readily accessible for
global investors and increase their involvement in the Israeli
capital market, benefiting the Israeli economy in general and the
local companies in particular. We are currently examining all the
public comments received in order to reach the most fitting
solution, both for international investors and for the Israeli
capital market."
TEL
AVIV, Israel, Aug. 7, 2024
/PRNewswire/ -- The Tel-Aviv Stock Exchange Ltd. (TASE: TASE) today
announced its financial results for the second quarter ended
June 30, 2024.
Trading volumes rose significantly in the first half of the
year with growth in indices and solid issuance activity
In the first half of 2024, in the midst of the war, the TA-125
index increased by 3.5%, compared to the 3.8% for the Dow Jones
index and compared 14.5% for the S&P 500 index. Equity price
rises characterized most sectoral indices, with the TA-Retail index
leading the list with a 13% increase, followed by the high-tech
companies' indices - TA-Technology and TA-Global Bluetech, with a
10% and 9% increase, respectively, compared to the concurrent 17%
increase in the NASDAQ 100 index. The market cap of the equity
market at the end of the first half of the year reached
NIS 1,087 billion, a 3% increase over
2023.
Trading volumes in the main trading channels increased
significantly in the first half of the year compared to
2023.
In the equity market, trading volumes were 8% higher than the
average daily trading volume for all of 2023, and averaged
NIS 2.1 billion a day.
The average daily trading volume of bonds reached NIS 4.5 billion in the first half of the year,
15% higher than the average daily trading volume in the year 2023.
This increase was driven mainly by the increase in the trading
volume of the government shekel bonds, which totaled NIS 2.3 billion, compared to an average of
NIS 1.9 billion in the previous year.
CPI-linked government bonds also showed stronger trading volumes,
at an average daily volume of NIS 1
billion, 1% greater than the average daily trading volume in
the full year 2023. The trading volume of corporate bonds averaged
NIS 1.1 billion, 12% greater than the
average daily trading volume in the previous year.
T-bills also recorded substantial trading volumes in the first
half of the year, at a daily average of NIS
1.7 billion, 19% higher than the average daily trading
volume in 2023.
Creations and redemptions of mutual funds reached an average
daily volume of NIS 1.8 billion, 28%
greater than the average daily volume in the year 2023. The market
cap of the mutual funds at the end of the first half of the year
reached NIS 375 billion, 14% greater
than the market cap at the end of 2023, this as a result of
acquisitions of mutual funds and the appreciation of the mutual
funds' assets on TASE.
In the first half of the year, 3 companies completed an IPO on
TASE, compared to only one company in 2023.
Against the backdrop of the ongoing war and the growing deficit,
the Ministry of Finance continued to raise debt in the second
quarter of the year. The total amount of debt raised by the
Ministry of Finance in bond offerings in the first half of the year
totaled NIS 124.4 billion, compared
to NIS 76.7 billion in the second
half of 2023. NIS 95.7 billion of
said amount was raised on TASE.
Continued implementation of the strategic plan - alignment
with global standards and diversification of investment
products
TASE continues to implement the strategic plan, with significant
emphasis on the enhancement of global activity, the alignment of
standards and the removal of trading barriers in the interfaces
with the international markets.
Further to a call for public comments, published by TASE in
collaboration with the Israel Securities Authority and the Bank of
Israel, regarding the proposed
transition to trading on Fridays as well, in line with the global
standard, TASE announces that the proposed move received a very
positive response from local and international investors, with a
majority supporting a transition to a Monday through Friday trading
week. TASE is currently considering options for the implementation
of this alignment that would optimally benefit the local capital
market and the international investors.
TASE continues to work in cooperation with the various
authorities and regulators. Thus, for example, in mid-July, the
Ministerial Legislation Committee approved the Securitization Law,
which will facilitate, for the first time in Israel, the execution of securitization
transactions, in alignment with global practices. Once the
legislation is passed by the Knesset, TASE hopes to implement it
and open the market already in 2025. In addition, the Israel
Securities Authority has recently approved the launch of new money
market funds with fixed dates, offering the public access to
predetermined yield, this alongside the existing money market
funds, allowing for greater product diversity for the benefit of
the public.
TASE continues to actively encourage new brokers to enter the
Israeli capital market - since the end of May, Altshuler Shaham
Trade is active as a member on TASE and TASE Clearing House,
bringing the number of TASE members up to 25, compared to 24 at the
end of 2023.
In addition, TASE continues to expand and diversify the range of
products and to invest, among others, in new exclusive indices,
this as part of its strategy of developing and upgrading the
market, especially with the public in mind. In June, for the first
time, TASE launched new indices with Kesem, Israel's largest fund company. In mid-July,
TASE announced the launch of 7 additional equity and bond indices,
some of which are designated for further collaborations between
TASE and the various product issuers.
In the derivatives market, at the beginning of June, TASE
reduced the multipliers of options on the TA-35 index, the
TA-Banks5 index and the TA-125 index, as well as those of the
foreign exchange derivatives traded on TASE. Part of the sources
that will derive from the reduction of the underlying assets'
multipliers will be allocated to the development of the market and
the enhancement of liquidity in the derivatives' market by way of a
volume rebate program.
Highlights of the results for the second quarter and the
first half of 2024:
Revenue in the second quarter of 2024 totaled
NIS 105.1 million, compared to
revenue of NIS 92.9 million in the
corresponding quarter last year, an increase of 13%. The increase
in revenue is due mainly to an increase in revenue from data
distribution and connectivity services, as a result of the
increased volume of activity and the impact of the updated
index-usage fees. The most significant revenue item - trading and
clearing commissions - totaled NIS 38.8
million in the second quarter of the year, compared to
NIS 35.5 million in the corresponding
quarter last year. 15% of the increase in revenue from trading and
clearing commissions is due to an increase in the trading volumes
and in the volume of creations/redemptions of mutual fund units. In
opposition, a reduction in the effective commission rate in revenue
from mutual funds and T-bills reduced the aforesaid increase in
revenue by 4%, and there being one less trading day in the current
quarter reduced revenue by an additional 2%.
Costs in the second quarter of 2024 totaled NIS 74.8 million, compared to costs of
NIS 72.6 million in the corresponding
quarter last year, a 3% increase. The higher costs are due mainly
to the increase in payroll expenses and technological investments
and in computer and communication expenses.
Net financing income in the second quarter of 2024
totaled NIS 2 million, compared to
net financing income of NIS 3.6
million in the corresponding quarter last year, a 45%
decrease. Financing income in the quarter increased due to interest
income on the deposits. At the same time, financing expenses also
increased as a result of a bank loan obtained at the end of 2023,
resulting in reduced net financing income.
Tax expenses, net in the second quarter of 2024 totaled
NIS 8 million, compared to
NIS 5.2 million in the corresponding
quarter last year. The increase in the tax expense stemmed from the
higher pre-tax profit. The increase in the effective tax rate is
due to losses on securities in previous years for which deferred
taxes were not created.
The profit in the second quarter of 2024 totaled
NIS 24.3 million, compared to
NIS 18.8 million in the corresponding
quarter last year, an increase of 29%. The increase in profit was
due mainly to the increase in revenue, less the increase in costs
and in tax expenses, as described above.
The adjusted EBITDA in the second quarter of 2024 totaled
NIS 45.8 million, compared to
NIS 35.6 million in the corresponding
quarter last year, an increase of 29%. Most of the increase is due
to the NIS 10 million increase in
profit before financing.
The adjusted profit in the second quarter of 2024 totaled
NIS 25.7 million, compared to
NIS 20.4 million in the corresponding
quarter last year, an increase of 26%. Most of the increase is due
to an increase in revenue from services, less the increase in costs
and in tax expenses.
Highlights of the results for the first half of 2024:
Revenue in the first half of 2024 totaled NIS 213.4 million, compared to revenue of
NIS 192.9 million in the
corresponding period last year, an 11% increase. The increase in
revenue is due mainly to an increase in revenue from data
distribution and connectivity services, as a result of the
increased volume of activity and the impact of the updated
index-usage fees.
Costs in the first half of 2024 totaled NIS 150.1 million, compared to costs of
NIS 142.6 million in the
corresponding period last year, a 5% increase. The higher costs are
due mainly to the increase in payroll expenses and technological
investments and in computer and communication expenses.
Net financing income in the first half of 2024 totaled
NIS 3.4 million, compared to net
financing income of NIS 6.1 million
in the corresponding period last year, a 44% decrease. Financing
income in the period increased due to interest income on the
deposits. At the same time, financing expenses also increased as a
result of a bank loan obtained at the end of 2023, resulting in
reduced net financing income.
Net tax expense in the first half of 2024 totaled
NIS 16.7 million, compared to
NIS 12.2 million in the corresponding
period last year, a 37% increase. The increase in the tax expense
stemmed from the higher pre-tax profit. The increase in the
effective tax rate is due to losses on securities in previous years
for which deferred taxes were not created.
The profit in the first half of 2024 totaled NIS 50 million, compared to NIS 44.3 million in the corresponding period last
year, a 13% increase. Most of the increase in profit was due to the
increase in revenue, less the increase in costs and in tax
expenses, as described above.
The adjusted EBITDA in the first half of 2024 totaled
NIS 94.4 million, compared to
NIS 79.1 million in the corresponding
period last year, a 19% increase. The increase is due to an
increase of NIS 12.9 million in
profit before financing, eliminating share-based payment expenses
and depreciation expenses in an amount of NIS 2.4 million.
The adjusted profit in the first half of 2024 totaled
NIS 53.5 million, compared to
NIS 46.5 million in the corresponding
period last year, a 15% increase. Most of the increase is due to an
increase in revenue from services, less the increase in costs and
in tax expenses and the adjustment of the increase in costs with
respect to share-based payments.
Click here for the link to the full
financial statements for the second quarter of 2024>
Click here for the link to the financial
presentation of the second quarter of 2024>
This notification does not supersede that stated in the periodic
financial statements of the Company, which contain the full and
accurate information.
Seasonality
The revenue of the Company from trading and clearing is
affected, inter alia, by the number of trading and clearing days.
In the second quarter of 2024, there were 57 trading days, compared
to 58 days in the corresponding quarter last year, a 1.7% decrease.
In the first six months of 2024 there were 120 trading days,
compared to 122 days in the corresponding period last year, a 1.6%
decrease. Presented below is information on the quarterly breakdown
of trading days:
Year
|
First
quarter
|
Second
quarter
|
Third
quarter
|
Fourth
quarter
|
Total
|
2023
|
64
|
58
|
61
|
66
|
249
|
2024
|
63
|
57
|
65
|
58
|
234
|
Contact:
Orna Goren
Head of Communication and Public Relations Unit
Tel: +972 76 8160405
tase.ir@tase.co.il
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content:https://www.prnewswire.com/news-releases/the-tel-aviv-stock-exchange-reports-the-results-of-the-financial-statements-for-the-second-quarter-and-the-first-half-of-2024-302216898.html
SOURCE The Tel Aviv Stock Exchange Ltd.