The Tel-Aviv Stock Exchange (TASE) Q1 2020 earnings summary

Executive summary

• Q1'20 revenue rose 26% YoY to NIS 81.2M as coronavirus-driven trading activity lifted transaction and clearing-related income.

• Financing results swung to a NIS 4.4M expense from NIS 4.0M income, partly reflecting government-bond price declines.

Financial highlights

• Revenue was NIS 81.207M vs. NIS 64.627M; expenses increased 3% to NIS 63.620M.

• Profit before net financing income was NIS 17.587M vs. NIS 2.891M; GAAP net profit rose 89% to NIS 10.230M.

• Adjusted EBITDA rose 104% to NIS 28.890M and adjusted net profit rose 96% to NIS 10.644M.

• Basic EPS was NIS 0.102 vs. NIS 0.054; diluted EPS was NIS 0.100 vs. NIS 0.054.

• Operating cash flow was NIS 46.6M vs. NIS 24.6M; cash and cash equivalents increased NIS 37.5M during Q1.

Segment performance

• Trading and clearing commissions rose 49% to NIS 39.680M, driven by higher share, mutual-fund, derivatives, corporate-bond and government-bond volumes.

• Listing fees and levies increased 11% to NIS 14.977M, reflecting prior-year fee recognition, new annual fees and higher market capitalizations used in fee calculations.

• Clearing House services revenue rose 16% to NIS 14.368M, including higher member services and custodial fees.

• Data and connectivity revenue was nearly flat at NIS 11.615M; distributor efficiency measures offset private-client growth and colocation and BSO revenue.