The Tel-Aviv Stock Exchange (TASE) Q1 2021 earnings summary

Executive summary

• Q1’21 revenue was NIS 78.370M, down 3% YoY; adjusted EBITDA was NIS 24.556M, down 15%, and adjusted net profit was NIS 9.894M, down 7%.

• Trading and clearing commissions provided 44% of revenue; non-transactional services accounted for 56%.

• Lower trading and clearing income was partly offset by growth in listing, clearing-house, and data services.

Financial highlights

• Revenue was NIS 78.370M versus NIS 81.207M in Q1’20; expenses rose 3% to NIS 65.674M.

• Net profit was NIS 9.661M, down 6%; profit before financing income and expenses fell 28% to NIS 12.696M.

• Diluted EPS was NIS 0.093, down 7% YoY; basic EPS was NIS 0.096, down 6%.

• Net financing income was NIS 0.1M versus net financing expenses of NIS 4.4M in Q1’20, reflecting positive investment yields versus negative yields.

Segment performance

• Trading and clearing commissions fell 14% to NIS 34.1M on lower mutual-fund activity and share, bond, derivatives, and T-bill volumes; higher effective commission rates partly offset declines.

• Listing fees and levies rose 10% to NIS 16.4M, supported by prospectus examination fees and new annual fees introduced in 2021.

• Clearing House services revenue rose 5% to NIS 15.1M, led by higher custodial fees as assets appreciated and new services; lower revenue from existing clearing services partly offset growth.

• Data distribution and connectivity revenue rose 9% to NIS 12.6M, led by private and business customers, including distribution of derivative information.

• Other revenue fell 70% to NIS 0.2M, reflecting the conference center shutdown and termination of a rental agreement starting February 2021.