Gielda Papierów Wartosciowych w Warszawie (GPW) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenues of PLN 120.9 million, up 9.2% year-on-year, mainly driven by strong financial market performance and cost growth below revenue growth for the first time in 11 quarters.

• Financial market revenues rose 16.8% year-on-year to PLN 77 million, with share trading up 31.2% and data sales showing double-digit growth; commodity market revenues remained stable.

• Adjusted EBITDA grew 8% year-on-year to PLN 47.5 million, while reported EBITDA fell 5.3% to PLN 41.7 million due to a one-off intangible asset write-down.

• Adjusted net profit was PLN 44.5 million, down 1.1% year-on-year, impacted by lower financial income and a provision for potential tax payables; reported net profit was PLN 39.8 million, down 11.6% year-on-year.

• Dividend of PLN 3.00 per share paid in August 2024, totaling PLN 126 million and representing about 80% of consolidated net profit; new WATS trading system launch set for November 10, 2025.

Financial highlights

• Cost-to-income ratio improved to 66.1%, down nearly two percentage points year-on-year.

• Operating costs increased 6.4% year-on-year to PLN 80 million, mainly due to higher salaries and severance, but third-party services costs declined 11%.

• Net cash at Q2 end was PLN 458.9 million, reduced by a PLN 126 million dividend paid in August.

• Capital expenditures dropped in Q2 and H1, expected to rise in H2 but remain below last year’s total.

• Net financial income dropped 63.3% year-on-year to PLN 3.6 million due to lower market interest rates and increased VAT provisions.

Outlook and guidance

• Expectation of increased commodity trading volumes and revenues in Q4 due to seasonality and potential regulatory changes.

• Cost optimization remains a key focus, with further improvements in cost-to-income ratio anticipated next year.

• Anticipate a rebound in IPO activity in Poland in H2 2024, following strong growth in European IPOs.

• New strategy for the group to be announced by year-end, with strategic directions possibly shared earlier.

• Management expects higher capex in H2 2024.