Gielda Papierów Wartosciowych w Warszawie (GPW) Q4 2024 earnings summary

Executive summary

• Achieved record revenues of PLN 464.8M in 2024, up 4.5% year-over-year, driven by Financial Market growth (+9.8% YoY) despite a 2.7% decline in the Commodity Market.

• Main Market cash equities turnover reached a record PLN 331.4B (+20.8% YoY); Żabka Group's IPO was the largest in Europe for H2 2024.

• Strategic review led to write-offs and provisions totaling PLN 38.6M at EBITDA level; adjusted EBITDA rose 2.2% YoY to PLN 163.7M, adjusted net profit up 1.1% YoY to PLN 157.7M.

• Cost/income ratio declined for the first time in three years due to cost control and optimization.

Financial highlights

• Q4 2024 revenue: PLN 113.7M (-1.9% YoY); 2024 revenue: PLN 464.8M (+4.5% YoY).

• Adjusted EBITDA for 2024: PLN 163.7M (+2.2% YoY); adjusted net profit: PLN 157.7M (+1.1% YoY).

• Free cash flow in 2024: PLN 90.2M (+23.7% YoY); liquid assets at year-end: PLN 395.1M.

• CAPEX decreased 24.9% YoY in 2024; significant CAPEX increase expected in 2025 due to IT and regulatory projects.

Outlook and guidance

• High cash equity turnover in Q1 2025 (+29% YoY) and record index levels.

• Commodity market volumes expected to be affected by the absence of electricity market trading obligation.

• OPEX to rise temporarily in 2025 due to WATS, DORA, and new financial system implementation; CAPEX to be significantly above 2024.

• Ambition for 2024-2027: revenue CAGR 6-8%, EBITDA CAGR 8-12%, C/I ratio ~65%, ROE ~18%.