Gielda Papierów Wartosciowych w Warszawie (GPW) Q3 2024 earnings summary

Executive summary

• Achieved record-high quarterly revenue of PLN 120.9 million, up 9.2% year-on-year, with cost growth below revenue growth for the first time in 11 quarters.

• Q3 2024 saw revenue growth of 6% year on year, with financial market revenue up over 9% and commodity market revenue stabilizing despite lower electricity trade offset by higher gas turnover.

• Net profit attributable to equity holders increased nearly 6% year on year in Q3, but consolidated net profit for 9M 2024 was PLN 109.3 million, down 2.9% year-on-year, impacted by a PLN 6 million asset impairment.

• Major IPO activity included the Żabka Group's PLN 6.5 billion IPO, the fourth largest in Europe this year, significantly boosting equity turnover.

• Dividend of PLN 3.00 per share paid for 2023, representing about 80% of consolidated net profit, the third highest in GPW history.

Financial highlights

• EBITDA (adjusted) reached PLN 47.5 million (+8.0% YoY); reported EBITDA was PLN 41.7 million (-5.3% YoY); EBITDA margin was 37.9% in Q3 2024.

• Cost/income ratio improved to 66.1% in Q2 and 69.1% in Q3 2024, both lower year on year.

• Free cash flow for the 12 months ended September 2024 was nearly PLN 80 million, up 20% year on year, with a net cash position of PLN 350 million.

• CapEx in Q3 was PLN 13.7 million, with cumulative infrastructure CapEx for nine months at PLN 6.1 million, down from PLN 16.6 million year on year.

• Net profit margin was 31.1%, EBITDA margin 33.0%, and ROE 15.1% for 9M 2024.

Outlook and guidance

• Q4 is expected to see higher employee costs due to a 6% salary pool increase and higher CapEx as delayed investments are executed.

• The WATS trading system rollout is postponed to November 2025, with a total project budget of PLN 152.9 million.

• Focus remains on growing core business, expanding product offerings (especially for retail investors), and improving SME segment liquidity.

• New strategy for the group is expected to be presented before year-end, with an emphasis on M&A in financial services.

• Management expects a recovery in the IPO market in H2 2024.